So you have an ingenious business idea that you’re itching to turn into a reality. The question is, do you have what it takes to follow it through? People think that the business idea is the most important part in starting the business - and they couldn’t be more wrong.
You don’t need a business coach to tell you that businesses require immense time, planning, and resources (financial and otherwise) to set up. More often than not, the main factor that hinders people from starting their own business is the capital. With that in mind, here are the top tips on starting your own business on a shoestring budget.
Plan for the long haul.
Like in any other endeavours, planning is crucial in building a business, more so in a business that intends to run on a small capital. While planning depends on the kind of business you want to start, the general rule is to create a plan that would capitalise on your strengths and the available resources to reach realistic business goals. A comprehensive plan keeps a company on a tight leash to avoid distractions and inadvertent spending.
Know where to get your capital.
For people who are dead serious about starting a business, there are many ways to fund your enterprise:
Loans from banks are obvious considerations, but there are other options available.
Let everyone you know about your plans on putting up a business. While angel investors are hard to come by, it’s not as impossible as you think, especially if you have a good business idea.
Consider joining startup competitions that help with the initial funding of brilliant business concepts. It’s a great way of getting your name out there for possible venture capitalists and investors.
Crowdfunding sites like Kickstarter and Indiegogo are a good way to generate funds for your business. Even if you don’t get funded, having an idea on how people respond to your product/service could be valuable in improving it.
Keep an eye on your finances.
As difficult as getting the initial capital for your business was, staying on budget and not bleeding out could be just as difficult. Track every cent of your expenses and revenues. Avoid spending on things that wouldn’t help your business. The goal is to stay afloat and keep on growing your business.
Generate (free) buzz.
Use digital media to your advantage. Reach out using social media, blogs, and other digital resources available to you. During the early stages of your business, investing on advertising and press relations may not be ideal. Instead, maximise the perks of digital media in interacting with and engaging your target consumers.
Get a business coach.
If you don’t have a skerrick of competent business experience, don’t be afraid to seek a business coach. With their help, you can learn about the basics of your business and how you can take advantage of opportunities within your reach. Recognising that you have a lot to learn is the first step in being a good businessman.
While it can be hard to set up a business on a tight budget, it’s not impossible. After all, passion and perseverance are resources that money can’t match.
A good businessman knows their strengths and improves on their weaknesses. Take our free TRUST assessment, learn what business aspects you need to work on, and find out how myCEO can help you.