Starting Your Own Business

Starting your own business can be exciting, but if your budget is tight it won’t be long before you’re feeling completely overwhelmed. While it might be challenging, it can be done.

The best type of business to start on a shoestring budget is one that has low overheads, a small inventory, little or no labour expenses and one in which you get paid immediately. There are very few businesses that tick all these boxes but you still shouldn’t be put off.

Starting a business with very little capital requires careful planning and all the cash you have must be conserved. Some other things you need to bear in mind include:

  · Keep a lean mindset – in other words only spend when the money is going to grow your business. Don’t spend your money unless it’s going to get you more customers or help you serve more customers.

  · Don’t expect a salary – for the first few months, possibly as long as the first year, don’t expect to receive a salary. Even if you can afford to pay yourself a salary, don’t expect it to be a big one.

  · Consider renting rather than buying – it’s possible to rent or hire virtually anything and when you’re starting out this is often the best way to go. Get some money in the bank before you start worrying about buying new equipment. Even then you should consider buying used.

  · Use the cloud and subscription software – whatever type of software you need for your business it’s possible you can use it by paying a monthly fee. Many cloud apps, for example, provide the option for paying monthly.

  · Don’t rush into hiring employees – having employees on your payroll can be very expensive. Look into the option of hiring business services or freelancers to do the tasks you don’t have time for. When you’ve achieved a certain level of success, then you can look at hiring a full-time employee. Even then, a couple of part-time freelancers might still be a better option. There are plenty of platforms online where you can find freelancers for pretty much any kind of work.

  · Focus on getting a loyal customer base – it’s far more cost effective to focus on your loyal customers rather than chasing more and more new customers. Loyal customers are likely to spend more if you keep them engaged and interested and make them feel they’re a special part of your business.

  · Shop around for the best deals – always look for discounts wherever possible and shop around when considering commercial gas prices and the rates for other essential utilities.

  · Use digital marketing – when you’re just starting out you need to look for ways to promote your business. Traditionally, it would have been newspaper ads, fliers and mail campaigns that would be used to advertise a new business. Nowadays, it’s possible to spread the word without spending a penny. Use digital marketing methods such as social media marketing, content marketing and blogging to target a specific audience.

  · How much to pay yourself as a small business owner (the exact formula) – this is useful resource that highlights paying yourself as a freelancer and is featured on Carefulcents.com.