Starting A Business On A Shoestring Budget? Here Are Some Helpful Hints
Do you need lots of money to start up a business? Does starting one up on a shoestring budget sound just too good to be true? Absolutely not! There are plenty of successful entrepreneurs out there who have started up their own business with very little money. It takes a bit more creativity and more work, but it is more than possible.
In an ideal world, of course, you would have enough capital to start a business to allow you to move more aggressively and grow your business quickly. However, if you have no money, you shouldn’t be discouraged from starting your own business. If you have great ideas and a viable business plan, there are other ways of moving forward, and that is what we are going to look at in this article.
Image credit: Pixabay CC0 License
Think carefully about borrowing
Ideally, you wouldn’t need to borrow money to start your business. After all, you the whole idea of creating your own business is to build an income. You don’t want yet another bill to have to think about.
However, sometimes, to keep afloat, you simply have to borrow money. Inadequate funding is a significant reason why many small businesses struggle. You have to be ready to take on the right kind of debt. Not all debt is bad. However, before you take out a loan or any other form of credit, you need to have a plan in place for paying it back.
However, much as you want to be positive about your enterprise, there is always the risk that your company could fail. Instead of nourishing your bank account, you might end up selling your house, your car, and sacrificing your child’s college fund just to pay off your debts. Be smart when it comes to taking risks.
Spend wisely
If you have limited capital, set aside any thoughts of a swanky store or a terrific office. Start at home and enjoy the advantages of working at home. If you do have to be “out there” to sell your goods, rent a small section on a market or at a fair and only think about renting a permanent spot when you start making a profit.
You also need to think about operating as frugally as possible. As a sole budget business owner, you don’t have the luxury of wasting resources and spending money without thinking about it very carefully. Every single cost comes directly out of your pocket.
Spend money only when it is absolutely necessary. Try to avoid buying equipment and machinery from new; instead, look at Equipment Auctions or hiring it instead to save some cash.
Make sure that there is a demand for your business
This is something that you should be doing before you do anything else. If you don’t have enough money, there is little margin for trial and error. Your company will succeed only if it creates enough revenue to fund it. Be sure that the business that you are about to start can give you the results you want. Otherwise, you might even lose the very few funds you already have.
Create a professional image
You have heard of the saying ‘fake it until you make it’. Well, that is where this is applicable. Even if you are working from your kitchen table surrounded by piles of laundry, it doesn’t hurt for your customers and clients to think you are running a well-oiled machine – and we aren’t talking about your washer!
Your success depends on how your customers regard your company. Letting them know you are a one-man-band working from home can sometimes be detrimental to your business. Customers generally prefer to deal with a company that shows professionalism and the ability to deliver what it promises, and unfortunately, these traits are often associated with large, well-established enterprises.
Looking professional doesn’t necessarily mean spending heaps of money. You can start with stylish business cards and stationery. If you have a website, you can build one that looks super sleek. Answer phone calls politely and professionally, and make sure there are no distracting noises in the background such as barking dogs or noisy children.
Be passionate
The one thing you can put unlimited amounts of into your business is passion. In fact, small startups often have more passion than big corporations, and this is a huge advantage. If you don’t have the passion and the drive to do well, you will find it very difficult to succeed. Passion will help you maintain your enthusiasm and energy to do what is needed to get the company up and running and keep it going even when it feels like it isn’t worth it. This is what will set you apart from others.
Be a customer service wizard
Finding new customers can be hard work. It involves aggressive marketing, which you may not have the resources for. It is much, much easier to retain customers and encourage repeat business than to generate new, although it should never be either/or. The best way of doing this is to ensure that you offer a top-notch experience for your customers to make them want to come back time and time again.
Remember; the customer is king. Roll out the red carpet every time they do business with you, and they will come back over and over again and recommend you to family, friends and colleagues.
10. Have a steady cash flow
When you don’t have much cash, making sure that the cash that you do have is flowing is essential. You do not have the option of waiting for 60 or 90 days before you can get paid for services that have already been provided or goods that have already been supplied. You need the cash, and you need it right now. Thus, you always have to make sure that your company generates cash reasonably quickly.
One tactic to make sure you have cash is to stop or restrict inventory. Inventory ensures that your cash will be retained in your products. Only buy what you can sell. Avoid overstocking, particularly slow-moving items. Unless you can shift stock quickly, don’t tie your capital to excess inventory.
As you can see, it is more than possible to start a successful business on a shoestring budget. With careful money management, creativity and professionalism, you can look forward to competing with the big boys!
Recent Comments