Hoping to escape the rat race and start your own business- but don’t have much money to get established? Fear not, it can be done. Here’s what you need to bear in mind.
Choose the Right Kind of Business
If you want to start up a business but know that you don’t have much money to get things off the ground, you might need to carefully consider your initial idea. Some businesses will naturally cost more than others to get started up, so be realistic about what you can afford. Weigh up the risks involved, if you only have a limited budget and really need your venture to work then you might be best going with a safer option. You can always keep your ‘million dollar idea’ on the backburner and invest in it when you’re more financially able! Something like a franchise could be a safe bet since you don’t need to worry about growing your business, marketing or any other of the big expenses most businesses face. Selling your services such as writing, design or whatever your expertise are can be a good option providing you don’t need a lot of expensive equipment to start with. This is because you won’t need to spend huge amounts on materials, so it’s only your time that’s at risk of being wasted and not financial investment.
Once you have an idea for your business it can be tempting to throw everything you have at it. But actually, if you’re on a small budget then it’s a far safer option to start small. Get established, build up some good reviews and grow your following on social media. Expand operations as time goes on so that there’s less risk and you’re much more in control. For example, instead of going out and purchasing lots of expensive equipment, could you hire to begin with? Instead of hiring commercial premises, could you work from home at first? Having some patience and letting your business develop slowly and organically in the beginning can be a good move for those on a shoestring budget.
Outsource Some Areas
Instead of hiring your own staff (which comes with a lot of expense and legal responsibliity) you could consider outsourcing any tasks you’re unable to do yourself, at least at first. From marketing to blog writing, tax and finance or fulfilment, there are companies that specialise in just about everything these days. You can employ these on a task by task basis or work alongside them on a longer basis. It can save small businesses money, but ensure you work out your finances so you can afford to pay them. You might end up with a commercial collection agency coming after you if you can’t pay the companies you’re outsourcing to.
Finally, when you dont have much money to start out with, it makes sense that you’ll need to account for every penny. There are some great, inexpensive financial software programs available for business to help you to stay on track.