By Anthony O. Lucero
Small businesses are all around us, from small cities to big cities. They are very important to the economy because they provide opportunities for entrepreneurs that larger companies can’t provide. Though many of us think that they must have started with tons of money.
Starting a business will forever be expensive but doesn’t mean you have to spend all your money or begin with millions of dollars.
Most businesses can start while on a budget and still be very successful. Maintaining finances is the key to having a strong company.
For example Starbucks, Subway, and even HP started businesses from almost nothing.
These are some of the biggest businesses in the world and they used multiple ways to start their company while on a budget but also providing their product with great quality.
“A big business starts small”
Richard Branson
You could create a company just as big as Starbucks or Subway. It’s all about how you start.
Many people at the ages of 18-25 don’t have a high income. This doesn’t have to stop you from achieving your goal.
Caroline Castrillion, a writer for Forbes.com explained how a study found by Small Business Administration SBA stated that “Many micro-businesses can get started for as little as $3000 or less. These businesses are often home-based sole proprietorships that require low, upfront investments.”
$3000 dollars might sound like a lot right now but by saving for at least a year, you should be able to obtain this amount of money.
Watching your Funds
Try to do these methods to help you begin your small business on a budget!
1. Share Your Product on Free Social Media Sites
When Starting a business, it can be easy to spend all your money to get your product out to the public. Back in the day, advertising your business was one of the most expensive parts with starting a business. We are super lucky because we can share our product/company through social media sites such as Facebook, Instagram, Twitter, and many more for free! For example, if starting a clothing line, you could take pictures of your product and post it on your Instagram feed without having to pay any additional fees. This is the easiest and cheapest way to start your business on a budget.
2. Simple is Better
When starting a business, you want to stay simple. Caroline Castrillion stated in her article ” A limited liability corporation (LLC) can be formed in most states for less than $100 online without legal assistance.” This is great because it could get very expensive to get an LLC. Along with that, you want to start with something that is well known to you and very easy to you. If you can do something you have prior knowledge in or formal education on, it will give you just that much of advantage of having a successful company. As the same time, you still want to keep your company creative and new to the public. Keeping it simple will allow you to kickstart your company a lot quicker and help yo maintain your dream.
3. Don’t Borrow Others Equipment
This can be specific to certain businesses. Having your own equipment is very important to starting a business on a budget. Yes, it can be expensive first purchase, but you won’t have to keep paying to borrow someone else’s equipment. An example is someone starting their own landscaping duty. You need certain tools to finish a job and you don’t have the right ones at that moment. You usually end up borrowing from a friend, family or company but at the same time you will have to pay more money in renting out someone else’s equipment. You will pay so much money on borrowing that you won’t make any profit from that project. That’s why owning your equipment is the cheaper route to go.
4. Work from Home
If possible, work from a rent-free place or at home! I can’t stress how important this is to your long-term and short-term cost. Leasing out space is probably the most expensive part of a businesses. You will see the biggest impact on your revenue by renting out a space. It’s practical, cheap, and very accommodating to your everyday life. Working from home will saves you tons of money but you will also be more involved in your company. If you have a basement, garage, or even your living room, do your business there! At first it might seem unorganized or hectic, but it will be worth it once you can afford a spacious place to carry on your business.
5. Find Connections
Connections are huge on starting a business while on a budget. If you can get hookup or deal on a product then take it. We all love sales or discounts at stores, right? Essentially this is the same when you’re starting a business. Find the cheapest way to get your product. This could be by finding someone who has deals on a certain item or buying in bulk for example. The best way to get connections is to get your name out there. Again, get your name out there on social media as I stated in step 1. Having more connections and larger network will allow you to get your product out there. You can also do this outside of social media. Going around and essentially creating friends will help you get deals on certain items that you need for your company. Having tons of connection is what will help your company grow.
Start now!
Starting off is usually the hardest part but by following these 5 simple steps you will be able to start easily and cheap.
Creating habits to watch your expenses will you take you very far in the future on creating a great company.
I repeat, great finance skills are the key to starting a great company. Without getting your finances in place, you wont ever be a successful company.
Do you agree with my concept on starting a business on a budget? How could you add to my list? Please comment.
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