5 Tips When Starting a Business With Almost No Money
You’ve come up with a business idea that you’ll think will fly and you’re excited. You’re prepared to take some risks like ditching your social life or quitting your current job. The only road bump that could threaten to burst your bubble is your bank balance. With little money in the kitty, getting a business off the ground may threaten your business dream.
How will you buy that cafe for sale you’ve been eyeing of? How will you get your products manufactured? How will you buy the stock you need for your retail shop?
Although a lack of finances appears to be a major problem, it is possible to get a business started with almost no money in the bank.
Here are 5 tips to help you realise your dream of starting up a business with little financial investment.
Form a business around your skills
Knowledge is power. Building your business around your skillset and what you know will reduce your need to outsource. Obviously, there are going to be gaps in your knowledge. But, once you start building your business, you’ll be able to engage consultants. Alternatively, considering exchanging your knowledge with someone you know. Sure, you might not be able to pay them in cash, but you can swap skills.
Consider your expenses wisely
Starting a business typically means you’re going to have plenty expenses. There are some expenses you simply can’t avoid, but there are ways you can avoid overspending. Instead of looking at a retail space for lease in a premium suburb, consider an upcoming area. Rather than spend $5,000 on a brand for your business, consider jumping on a freelance site like Fiverr to get the artwork you need for less. Being frugal could be the difference between failing and succeeding.
Be careful with your credit card
It’s so easy to flash your credit card around and buy up everything up need to get your business off the ground. But what happens when the enormous bill arrives at the end of the month? Don’t spend what you can’t pay off at the end of the month. Be disciplined otherwise cut the card up. Purchase one thing at a time and as your business grows you can use your revenue to cover the cost of the expenses.
Consider crowd funding
The way people seek investment these days has changed. Instead of going directly to the bank, entrepreneurs are going to the public. Whether you’re creating a documentary, building a tech gadget or making jewellery, crowd funding can help you build capital. Through platforms such as Kickstarter, the public invests a small amount of money in return for a product or benefit.
Be prepared to grind it out
A little sweat goes a long way when it comes to starting up a business and a lot of sweat goes even further. All those long days and nights of working hard will pay off as you increase the value of your business. You may not be receiving a pay check but you’ll be growing and marketing your business. By the time you need a partner, finance or when you’re ready to sell, your sweat equity will pay off.
Bonus: Hustle, hustle, hustle
With no money, you need to learn to hustle to make your business a success. Depending on your business, that might mean putting flyers in letter boxes, cold calls or chancing up overdue invoices. You could be hustling to get investment or finding the right consultants for less.
Don’t let having limited funds prevent you from starting up your dream business. We’re not going to tell you it’s going to be easy, but that comes with the territory of being an entrepreneur.