We all know that starting a business can be a very expensive way to make money but it doesn’t have to be.
“How to start a business with no money?” is one of the most popular things for wannabe entrepreneurs to Google.
While you can start some businesses with no money, we believe that before you go into business you should be prepared to invest a bit to get started.
Investing some money in starting your business gets you off to a solid head start but we have some tips to keep some of these costs down so that they’re not such a drain so early on.
Make use of social media marketing
The best thing about social media is that it’s free. It’s a great resource to take advantage of because it opens up a direct line of communication to your potential clients.
Make sure you’re interacting with other businesses and individuals and getting your brand out there.
You can also run polls and conduct market research that would be costly to run through an agency instead.
Keep your job
If you know you’re going to struggle for money in the early days of starting your business, you could do what many new entrepreneurs do, keep your day job.
It will be hard work and you’ll have little free time but it’s also a safer starting point because you won’t have to worry about how the business is going to pay the bills for a while. It’s also a good way to test whether business is right for you.
If you’re launching a new product or service it might be worth launching it for free to a small group of people to gather feedback, some of which you will be able to display on your website.
While giving stuff away for free is never ideal, it could end up providing more value as it’ll help give your business a stepping stone.
Create a solid business plan
If you’re short on money, you may naturally be looking to gather finance from the bank or from investors. In order to “sell” your business to them and convince them that you can pay them back or make them money, they’ll want to see a business plan.
This should include details of any market research, and detailed plans about how you intend to make this business a success. The more concrete and fact-based your plan is, the more likely you’ll be approved for that much-needed finance.
Hiring freelancers to work temporarily on building your business up in the beginning is a lot cheaper than hiring regular workers. You can also hire them as and when needed, so they can cover busy periods but aren’t wasted in quiet periods.
Get second hand equipment
If you’ve got to fork out for new equipment and need to save a bit of money, you’re best buying second hand. This can save you a ton of money in the beginning and if necessary, you can upgrade when you’re pulling in more profits.
Accept what you’ll need to pay for
You’re going to have to start spending money eventually to make money. So being prepared for this as soon as possible puts you in a much better position so you’re not caught off guard with nasty surprises.
Depending on what kind of business you’re running, you may need all sorts of permits or licenses. You may need to have some structural work done to your property or you may be faced with more operating costs than you originally assumed.
Make a list of every possible expense you can think of and estimate when you’ll need to pay for them. Get professional advice wherever possible and overestimate rather than underestimate. It’s always better to be safe than sorry.
Are you trying to keep costs down? What do you think will be your biggest expense? If you need low cost accountancy services, you can grab an instant quote from us here.