by Sharon Jones
Many people think that starting a new business means lots and lots of money, and although a significant cash injection would help pretty much any business get off the ground, it is possible to bring a business to lofe on a shoestring budget.
If you have a great business idea, but a small budget to bring it to fruition, here are some tips to help you reduce your startup costs and launch your business on a shoestring:
Put a budget in place
If you want to launch on a shoestring, you first need to know how much money you have available and what you expect your incomings and outgoings to be. That way, you can ensure that you set aside what money you do have for the most important aspects of your startup right off the bat.
Look for income sources
You may be planning to use your savings to start your new business, but have you thought about selling some of your stuff to make extra money? What about trying the local credit union or taking a chance on peer-to-peer lending? If you haven’t considered all your options, you could be pleasantly surprised by how much money you can access for your startup.
Prioritize
When you have a small budget, you really do need to prioritize and buy only what is essential to get you started. You may not be able to do without a website right now, but you can wait until you have more money for those custom office signs, for example. Try to work out which things will make the most impact and invest in those upfront, waiting until you have more money coming in to acquire whatever else you need for your business.
Buy second-hand
When you’re on a shoestring budget, it doesn’t make sense to pay full price for any equipment you need, especially when there are companies like Revelation Machinery selling second-hand machinery cheaply, and numerous companies who offer up used office equipment for a fraction of the price, for example. As long as you do due diligence and buy high-quality used, you should not have any problems, but you will have a healthier budget.
DIY
If you’re on a tight budget, it makes more sense to do as much of the work that comes with running your business yourself as you can possibly manage. Wages and associated expenses can be crippling when you’re just starting out, so learn how to do the books, how to market yourself online, how to build a website, etc., and be a one-person operation until you have some money coming in. If you really do need help with something that is beyond your skill level, hire a freelancer on an as-and-when basis to save money.
Use social media
Social media is a great free tool for marketing your business. When you’re starting out, learn how to use it to pick up followers and create conversions without having to pay for ads and it will see you well until you can afford to spend a bit more on marketing.
Good luck!