Many people have dreams of starting their own business, often the only thing that holds people back is a lack of funds. If money is tight, it may be difficult to progress from the idea stage. The amount of money needed to launch a new business does depend on the nature of your business. You will be unable to start a multinational manufacturing company on no money, but you may be able to start small with only a small amount of cash. By thinking creatively you may be able to start your own business on very little funds of your own, you may also be able to secure funding or a startup grant.
Here are some tips on how to launch your business as cheaply as possible.
Buy equipment and materials at low cost
Easier said than done, but to ensure sufficient profit margins you need to purchase supplies at a low price without compromising quality. Wholesalers will be keen to build up a good relationship with potential business owners and will often be open to negotiation, especially if you are buying items in large quantities. Meet with the sales reps and develop some negotiation skills.
If your business offers a delivery service research companies that offer reliable delivery at low cost, such as those in Shiply.
When sourcing products, materials and equipment ensure that the cost is reflected in your pricing structure. There’s no point paying out for expensive equipment if your business plan predicts your business will be running at a loss for many years. It’s reasonable to expect a small loss or to break even for the first year or so, after this point you need to be making a profit so that your business is viable.
Run your business from home
In the initial stages, when your business is still on a small scale, it’s worth researching the possibility of running it from home. This will dramatically lower costs related to hiring premises and the cost of commuting. Even if you are in a production business you could hire workspace for the production process and run everything else from home.
As long as you have an internet connection you will be able to run much of your business from home. Communication with other business owners, clients and suppliers can be conducted by email, skype or conference call. You can literally communicate on a global scale.
You may need to inform your landlord or mortgage provider of your intention to run a business from home.
There are so many tasks related to running a successful and unless you do everything yourself, costs relating to employing staff and outsourcing will start to mount. If you aim to complete most of the tasks yourself you can always call in the experts when you start to struggle. As profits begin to rise, you can outsource some of the tasks, so you can concentrate on generating more sales.
To conclude it is possible to start a business on a low budget, but you need to start small. Try to keep your work/life balance at a healthy level to prevent burnout.