If your big dream is to start a business and become a successful entrepreneur, don’t let a small budget keep you from achieving it. Plenty of successful businesses started out in a dorm room or a garage, with little to no budget – Microsoft and Apple are just two examples.
You don’t need to be wealthy to launch a successful company. All you need to do is have some determination and be prepared to work a bit harder than others. Sure, if you are planning to start a biotech company, you are going to need quite a significant budget, but lots of small businesses start out with little money and work their way up to the top.
Take things one at a time and take advantage of the fact that you can be your own boss. Start with enough capital to allow you to secure your first few clients, budget your money well, and you will be able to scale your business in the future.
If you are curious about what you can do to start a business with small funds, here are some tips to help you out.
Determine What You Can Obtain For Free
The human brain works in mysterious ways. It’s so easy to come up with a long list of reasons why you can’t do a certain thing, yet we find it so difficult to spot the opportunities that are right in front of us. If you are planning to start a business on a budget, you need to leverage everything you can get.
For example, you can reduce costs by doing your own marketing for a while. Or, if you only have a limited number of products to sell, building an e-commerce website may be too big of an investment for now. Choose to sell your products on platforms such as Esty or eBay instead of launching your first website just yet.
Make a list of things that are essential for your business and figure out if there is a way you can do or get these things for free. For some, you will be able to find convenient solutions, while for others you will need to invest a bit of money, but at least this way you will know for sure where your money needs to go.
Work With What You Have
Just as you don’t need a huge office to start your company, you won’t need the latest generation computer to start a business online, for example. Make use of the resources you already have, such as your computer, phone, car, or any other equipment that you already own and use.
This will significantly reduce your expenses and allow you to direct your small budget towards things such as materials or acquiring clients.
If you must purchase some of your equipment, a better option than buying directly from the store is looking for buy now pay later sites that allow you to pay for your products over a set period of time. This way, you won’t have to make a huge investment from the start. Think of it as if you were taking out a loan.
Set Up Your Office At Home
Especially if you plan to start this business on your own, without a team of employees, you can do this from the comfort of your own home and save some money that you would spend on a brick-and-mortar office. Leasing space is one of the biggest expenses for a business, and if you are not planning to start a big company from the very beginning, you don’t need a fancy office on the 15th floor of a corporate building. All you need is a desk, a computer, and a coffee machine. For meetings with clients, you can always go to a good restaurant or meet for coffee somewhere.
If your business relies mostly on the online, things are going to be even easier. You can schedule online meetings with clients or collaborators, and no one will know you are wearing a button-up shirt with pajama pants.
Start Off As A Sole Proprietorship
A sole proprietorship is a free-to-form operating structure that you can use to start your business. The best thing about it is that it is the only no-cost option for entrepreneurs. To put it simply, a sole proprietorship is a business run by an individual that becomes responsible for its debts. The downfall is that you and your business are not going to be two separate legal entities, but one.
This is a good option for beginner entrepreneurs to reduce costs, but do not consider it a long-term solution. As your business grows, it is advised you turn it into a separate legal entity by incorporating it. This will ensure that you are protected in case of debt, and you will also receive some tax benefits.
A sole proprietorship seems to be the best solution if you are on a budget, but remember you need to invest in incorporating your business once it starts taking off.
Remember That Time Means Money
Time is a valuable coin, so you need to use it well. Chances are, you are working with people that need to be paid, so their time is going to cost you money. If you want to manage your budget as good as possible, you need to manage your time just as well.
When you underestimate time, costs are going to increase, so make sure you only do business with people that value your time just as much as you value theirs. The last thing you need is to fail to complete one of your first orders and get a bad reputation only because the vendor delayed the materials. When clients ask for a deadline, and you know the project is going to be done in 3 days, promise delivery after 4 days so that you have time to tackle challenges.
Just because you want to start your business on a budget, it does not mean you need to settle with what you can get. Work smart and find ways to make the most out of your resources.
