Is It Possible to Set up a Successful Business on a Budget?
Ever feel like handing in your notice and giving up work for good? If this thought has been crossing your mind more and more lately, maybe it’s time to do something about it. If you’d rather become the boss instead and take control of your work and future, building up your own business is a great way to go about it. You might think that you need a lot of money to get things going, but it’s simply not true. Here are some of the ways you can get your business of the ground without breaking the bank.
Start Small
If you don’t have tonnes of cash in the bank to get your business up and running, it’s vital you use the funds you do have very wisely. Your best bet is to start small, get some good foundations in place and work up from there. Instead of hiring premises and lots of staff right away, some businesses may even be able to be started from home. Once everything is in place, and you know you have a products or services that people want to buy you’re good to go. As the profit comes in you can upgrade and expand. Many of the world’s biggest and most famous companies were started in spare bedrooms, garages and basements. Apple, Google and Disney are all examples. You might have humble beginnings, but the sky’s the limit when it comes to your success.
Rent Instead of Buy
Without large sums of money, it makes sense that at first you would rent expensive equipment instead of buying it. This allows you to pay a small amount each week or month and frees up money for other things which is so important in the beginning. If you’re a launderette, this could be things like washers and dryers, if you’re a print company it could be powerful, professional printers. You get access to quality equipment that you wouldn’t necessarily be able to afford to buy up front. As you grow, you could begin purchasing your own, but bear in mind you will have to factor in maintenance costs too.
Outsource Complex Areas
Another thing you could consider instead of renting or buying equipment is outsourcing entirely. New businesses can fall into the trap of thinking this is more expensive than it’s worth, but it can actually work out far cheaper. When you keep processes in- house, you have to hire more staff, buy equipment along with a larger premises to house everything. Plus you have to ensure everything is being done by the book and according to current employment laws (which change regularly) meaning it’s a lot of added hassle to you. You could outsource manufacturing, fulfilment, HR, payroll- anything that needs a lot of equipment or is particularly vulnerable to legal issues could be outsourced. Not only will you need to spend less money up front, but it frees up your time and energy to be used elsewhere in your business,
Find Investors
If you have a great idea for a business but just don’t have the money to get it off the ground, you have a couple of options. You could look for investors, often rich business people from overseas come to the US in search of businesses to invest in. Once their paperwork is sorted and they have a lawyer for EB-5 visa processing they’re free to start seeking companies to work with. The benefits of this are not only does it allow you to have access to money right away but you also have a mentor. Someone experienced in business and who is able to guide you. On the downside, you do have to give away a share of your company, and that’s if you can find investors at all. You might not have much money, but you need to have more than just an idea in your head. The competition is fierce, you need to prove that your idea will sell and that you’re the kind of hard working and dedicated person that's worth investing in. Your second option would be to seek a partnership and go into business 50/50. It doesn't mean that the work has to be split like this, one partner could be the silent partner (perhaps they have money but no time to commit) and the other could be more hands on. But however you divide up the work, you both own fifty percent of the company. If you have someone trustworthy who wants to get involved, this could help to ease money issues.
If you go about it in the right way, there’s no reason your business will be any less successful just because you didn’t start with a lot of money. You need to ensure that every penny is spent in the right way, and expand as you turn more and more profit.
Post a Comment