Most of us have thought about starting a business, but for one reason or the other, we are yet to implement the idea. Besides time to manage and run the business, lack of adequate funding is what keeps many budding entrepreneurs from starting their own businesses.
It can be frustrating to be so full of brilliant business ideas but lack the money to put them into practice. Many investors prefer to buy into start-ups and established business instead of funding ideas, and perhaps understandably so. That means that you make do with what you have and supplement with whatever little income you have saved in order to start a business. Do not let the lack of sufficient capital stop you from realizing your dream. Start with what you have and build and grow from there. There are a number of low-cost business ideas that you can start on a shoestring budget.
Below are few tips to help you start and grow a business on a small budget.
Start a business based on your passions or knowledge
Your small budget may not allow you to hire the best consultants in the market you have chosen. The way around your budget constraints is to start a small business based on your passions or your professional knowledge. If you are passionate about, say, fitness, then you can start a fitness class in your neighborhood and earn some money while doing what you could otherwise be doing for free. The same applies to painting, drawing, writing, etc.
The passion is what will get you out of bed during the stormy days in your business.
It is also easier for you to start a business based on your professional qualifications. If you are trained engineer, for example, you can become an engineering consultant or start an engineering company.
Market your new business by word of mouth to your family and friends and tell them to tell another five people in their social circle. Start small. Let them spread the word. That is how you get referrals especially if your business can only cater to the needs of your neighborhood or town. Share images and texts about your business on your social media platforms. Create a blog or website. Depending on your options, you can have a free blog or a paid self-hosted blog which shouldn’t be expensive. Whichever option you go with, your small business needs a blog. Create good content about your business services and if you can afford to, hire professionals like your content shop to help you with the content marketing.
Save for a rainy day
There are quite a number of unforeseen expenses that come up when you start a new business. Some of these expenses are legal and regulatory while others are arbitrary expenses in the daily running of the business. You need to have a little cash saved on the side to settle these expenses should they come up.
Do not get into debt
The risk of debt for a new business is a factor to consider. There might be an economic downturn, interest rates may surge, and if you fail to pay, you are putting your business at the risk of auctioneers selling off your assets. Furthermore, debt repayment denies your business the much-needed cash flow. Ensure you have a budget allowing for all possibilities, to avoid getting into debt and making a loss.