Can You Afford to Start a Small Business?

Are you thinking about starting a business but wondering if you have the financial resources to make the idea happen? It’s a common worry among creative business people who are itching to get their new companies off the ground. Fortunately, there are numerous techniques for raising money, keeping expenses low, reworking personal budgets to free up extra cash, finding investors, and leveraging the power of low-cost advertising. The first step is to reduce expenses within your personal budget. After that, consider beginning the search for investors, working from home for at least six months, and using free or low-priced tactics for advertising your new company’s goods and services. Here’s how to get off square one and make things happen.

Search for Investors

Initiate the hunt for investment money by spreading the word via social media, through family members, and by placing free ads on local websites. The best way to get seed money for an idea is to spread the word far and wide. That typically means joining relevant clubs and local business groups like chambers of commerce, trade shows, and merchants’ associations.

Work from Home

Office space, particularly in the current inflationary economy, is pricey. Even slivers in strip malls are going for top rates. To keep monthly expenses to a bare minimum, work from home for six months or a year. Consider using a post office box as a physical address. Upgrade computers and devices as needed, and set aside a room or section of your home where you won’t be disturbed while working.

Deal with Student Loans First

For so many hard-working people, entrepreneurial success hinges on having enough capital available to execute a great idea. Fortunately, for anyone who owes on one or more education loans, there is a simple, effective way to free up some cash for the purpose of starting a new business. When you refinance student loan obligations into a new loan, it’s possible to slash monthly payments by a significant amount. After a refi, it’s possible to end up with much more favorable terms in addition to lower monthly payments. Likewise, most budding entrepreneurs discover that the refinancing process gives them much more time to repay their school loans, which allows for even more breathing room in their personal monthly budget.

Write a Two-Year Plan

There’s no substitute for a detailed business plan. Include budgets, lists of employees, descriptions of positions, promotional plans, advertising strategies, legal information, and prospective financial statements for two years out. A well-written plan will help you with bank loans should you choose to borrow in the near future.

Use Low-Cost Marketing

For most new owners, the single largest expense is advertising. The good news is that anyone can benefit from low-cost and no-cost promotional tactics. Whether you sell goods or offer services on a retail or wholesale basis, leverage the power of inexpensive marketing tools like no-frills business cards, cold calling, social media ads, guest blogging, email marketing, and more. Consider joining as many local clubs and organizations as possible, provided they have the potential to bolster your networking list. Some of the best choices include chambers of commerce, dining out clubs, speakers’ bureaus, and power breakfast organizations.

Rylie Holt