5 Ways to Start a Business on a Shoestring Budget

If you’ve ever wanted to start a business but haven’t had the funds to do it, you might have put your dreams on hold. It is possible, however, to start a successful business on a shoestring budget. Here are some ways to do just that, and to make your business owning dreams a reality.

Sell What You Know

The best way to sell something successfully is to sell something you know. That way, you can really explain the benefits of it, and show a passion for it too. These two assets combined will boost your sales hugely. If you don’t have much – or any – start up capital behind you, then it is best to sell something that already exists, rather than trying to create something new. When you have made your money through your first business, then you can work on a second that involves innovating and you will be able to use your acquired business skills to great effect. To start with, though, stick with something tried and tested that you can sell with your own unique spin on.

Use the Resources to Hand

You can go out and purchase a brand-new laptop or tablet. You can invest in separate phone lines for your business. You can rent an office. Or, you can save a lot of money and work with what you already have. Be prepared to have to explain why you are doing so – particularly if you are working from home and the dogs start barking, for example, of it you are having to find a place with free WIFI because the internet is down at your house – but remember that this is saving you enough money, so you can get started. Getting started is the key. One thing that you should spend money on, however (and you can use the money you save in other areas to do so) is marketing. Using a professional company such as SmashBrand to help with your branding is essential.

Contacts

You will have heard the phrase ‘it’s not what you know but who you know’ many times, but it won’t ever feel quite as relevant until the time you start your own business on a tight budget. Having friends in the right places, or keeping in touch with people you’ve worked with in the past, can really help when it comes to boosting your business. They may be able to help out financially with investment, or perhaps they can offer advice. They might even be able to put you in touch with the people who can take your company skywards.

Organize Your Payments

If you have no money in your bank account and you’re starting a business, you’re going to need to get that bank account filled up fast – otherwise you won’t be able to purchase stock, pay for advertising, or even pay yourself and any staff you might have. If you run a project and service based business, requiring a deposit for anything that is bought, or even the full amount up front, is the best way to do this.  If you sell goods then you may need to work on a dropshipping basis, wherein you take payment for something, then use that money to purchase it. You keep the difference.

Stay Away from Credit

Although credit can work in your favor, it isn’t always the case and more often than not it can leave your fledgling company in serious debt that it is unable to pay off. Try to avoid borrowing if you can, and if you do have to, make sure the terms are sensible and that you have a plan to pay the debt off in a short amount of time.

 

Author: Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles by others on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to editor.webposts@gmail.com