May 31, 2019
Do you have a great business idea that needs executing? Are you short on cash to see it through? Worry not! Continue reading for tips on how to start a business on a budget.
A common belief is that in order to start a business, it is necessary to have a good amount of capital. Although this does apply for some businesses, the truth is that, in many cases, as we will show in this guide, it is also possible to start a business with little capital without this meaning that the business cannot become quite profitable in future. The following tips will help immensely if you are short of startup investment.
If you are still in the idea phase, to start a business with little capital, you are better off choosing a business idea that does not require much investment. It is usually thought that profitable businesses are only those that require a good investment, but there are also several businesses that for their implementation, require little capital and can still yield huge returns.
It does not matter if it is a business that requires little capital or one that requires a lot, once you know what business you are interested in, the next step is to write a business plan. A business plan helps as a guide to start your business (and thus achieve greater efficiency). With a plan, you will also know in advance if the business will succeed (and thus save time and money in case it doesn’t). And in case you seek financing, the plan will demonstrate the attractiveness of your idea.
There is no standard structure or format that must be used for a business plan, but usually it should include the following elements:
Unless you already have a place of your own or are going to set up your business at home or on the Internet, once you have drafted a business plan, the next step is to find suitable premises, not only for purchase but also for rent. A large part of the investment is usually made up of the cost of the premises, so if your goal is to reduce your investment and thus be able to start your business with little capital, you should make sure you look for a place where the purchase or rental price is not so high.
If your business will need a place to serve the public, choose an area where the purchase price or rent is not so high. The first thing you should take into account is that as a general rule, the more central the location is, or where there is a greater influx of people, the higher the cost of the premises. Likewise, the less central is your location or the less influx of people, the lower will be.
To reduce your investment, it is advisable to opt for a location that is not so central but is also not too far from commercial areas; although keep in mind that if you are able to offer a product or service of good quality and make an adequate promotion, consumers will visit you wherever you are.
Once you have a place for your business, the next step is to buy and install the machinery, equipment, and furniture necessary for operation.T o save on these assets, and thus reduce your investment, the wise step is not to acquire the first machines, equipment or furniture you find, but rather, take your time to research the market and compare prices; taking into account that it is common that the same machine, equipment or piece of furniture that is sold in one place, is offered in another at a much lower price.
To find these assets at good prices, you could seek advice from other entrepreneurs with experience in your industry or search online at specialized forums aimed at your locality.
Once you have searched and selected your suppliers, the next step is to find and select the personnel that your business will have. For this, you must first determine the departments that your business will be have, determine the positions in each department, and define the profile each staff must meet in order to apply for each of the positions.
To find employees who meet that profile without having to pay higher costs, you could ask relatives, friends or acquaintances if they know of trusted and trained persons that can be recommended.
A tip to reduce your personnel costs is to hire independent workers or freelancers as much as possible instead of hiring permanent workers. Even hiring staff that are multi-skilled goes a long way, especially if they have both administrative and marketing skills.
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