Starting Your Business on a Shoestring
Getting Your New Enterprise off the Ground with Minimal Expenditure
Aug 19, 2008
So you want to start up your own business but finance is tight and you have to work to a tight budget. For many people who would like to work from home or start small, a low cost solution is not only nice but also necessary.
Many people who start their own company also keep their day job or at least work part time at the beginning to ensure a regular income keeps coming in – even if that income is small. Starting this way may not be what you want to do, but it is the sensible option as it keeps your personal finances healthy, and if the business doesn’t work out you have something to fall back on.
Fortunately, most home-based businesses can be started with a small amount of money, can be maintained on a shoestring budget, and can be operated successfully with only a part-time investment.
Although you are working on a budget, money is very important when starting a business. You need to think about overheads and equipment, office or workspace if necessary, and always be aware of cash inflow and cash outflow. You may consider taking out a bank loan, but remember banks charge interest. If you choose to do this thoroughly, research the best loan for you and try to get a fixed interest rate. A better alternative is perhaps to try to get a business grant.
Once you have created your brand you need to start marketing, get your company recognised, start creating a buzz. You need to optimise your limited budget, don’t blow it all on a one-time advert in a glossy magazine for example, use low budget marketing on a regular basis. Your target audience usually needs to hear or see your marketing message approximately 7 times before they are influenced into buying. Use multiple marketing channels, newspapers, create a small business website, which can now be created cheaply or even free if you allow adverts -- this can be used until you have generated enough money to start paying monthly and even then you can find a site for around £2.99 ($4) a month!
Create a brochure, attend seminars, and stretch your budget as far as possible. You must ensure that you are reaching the correct target audience, think carefully about who you want to buy your product, who would buy your product, think about their lifestyle, etc. Aim for small niche markets; once you create a buzz the sales will start rolling in, and remember there is nothing more effective than word of mouth!
One day your business will be strong enough to support itself and its owner and you will be able to leave your other job and concentrate solely on the company and its expansion.
