It’s true, in business you need to spend money to make money. Getting your business venture set up can be pricey, but if you go about things in the right way it is possible to get started without much cash. Here are a few ways you can go about it.
Start Small
When you have your business idea ready, you’ve done your market research and have all of your planning in place, it’s tempting to want to go full steam ahead and go big. However your budget might now allow for this. Instead, why not start small? If you have to start off in very small premises or even from home until the ball is rolling then do so.
Instead of spending lots of money on a fancy website, how about selling on eBay, Etsy or Amazon until you have some profits behind you. You could even rent equipment instead of buying it to save yourself on the upfront costs. It gives you a chance to see if your business really does work, and you can start on a smaller scale and build from there.
You might have grand plans of a swanky office in a stunning tower block with views overlooking the city, lots of departments and employees and massive amounts of profit but you need to build to that. You can upgrade as you go, and it’s much safer to do so once you know your company is successfully selling the products or services you have on offer.
Make Use of Business Software
One way to save yourself both time and money is to use the right business software. This is something that all businesses need to be on board with these days, so don’t overlook it just because you’re a small startup.
From accounting software to legal software, customer relationship management software and more, do your research and invest in the programs that are right for you. It means that you will likely need to hire less staff members (saving you money on advertising, recruiting, interviewing, training and paying wages) and the staff you do have can be put to their best potential.
Search For Investors
If you have a fantastic idea for starting or expanding your business but really need money upfront to get started, one idea would be to search for investors. Wealthy business people often look for promising startups that they can invest in in return for shares in the company.
It means you have what you need to get started, and then when you turn a profit they get a cut of it so it’s win-win. Many investors will also mentor you giving you help and advice, even networking information which can be incredibly valuable as a new, small business.
Look For Deals and Offers
Just like you would look for deals and offers to live frugally in your day to day life, you should do the same with your business too. For example, www.yourcompanyformations.co.uk gives your cashback when you register your company formation with them.
Another idea is to look for deals on things like trademarks, customer lists and second hand equipment. Businesses that have failed often sell these kinds of things to raise revenue, bad news for them but something you can cash in on.
Expect The Unexpected
Finally, in business anything can happen. When things like the recession happened, it took its toll on many, many companies. Even on a less extreme levels, economic factors mean that profits will be higher and lower in some months. You might get fined, sued or you could have to cover the cost of an expensive piece of equipment.
Either way, hope for the best but plan for the worst. Have some savings or at least a line of credit available if you need it. It’s a fallback option in times of emergency, and could be the difference between keeping your business ticking over when times are hard, and it failing completely.
In summary, it is possible to start a business without much cash- in fact, some of the world’s largest today were started without much and from home. But you do need to go about it in the right way, and make sure that you’re being careful not to go too far into the red. Otherwise you could end up on a slippery slope to bankruptcy and failure.
What tips and advice do you have for anyone that’s planning on starting a business without a whole lot of money?
