8 Rules for Starting a Business on a Shoestring Budget | Next Level Success
Starting your own business is a huge investment of time, energy and cash. When you’re first getting started, you may have to “bootstrap” in order to get your company off the ground. Unless you’re a serial entrepreneur or independently wealthy, you likely don’t have a lot of extra money laying around to put into your startup.
Too often, entrepreneurs give up before they even get started due to funding issues — they have a great idea but lack the resources to make it a reality. Even if you are strapped for cash, starting a small business is still possible. Next Level Success offers a set of guidelines for how to start your business on a shoestring budget.
1. Wait to Fundraise
If you’re worried about a limited business budget, your first thought might be to look for investors to finance your startup. While this is a great option for some entrepreneurs, it may be a good idea to wait until your business is more established. Investors will likely want to see some early evidence of success before putting money into your startup. For now, it may be best to keep full control of your company while it is still small. When you’re ready to scale, look again at bringing in investors.
2. Incorporate with an LLC
If you’re on a tight budget, register as an LLC rather than a corporation. Jumping right into a corporation can be costly. An LLC, on the other hand, will usually cost less than $100 to register, depending on the state, and you won’t have to hire legal counsel for assistance.
3. Work from Home
Renting office or retail space is a huge drain on a small budget. For as long as you can, work out of your home. Dedicate a room as your “office,” ideally removed from the main living areas so you won’t be tempted to distract yourself. If you need to meet with clients and don’t feel comfortable inviting them to your home or apartment, try a public space such as a library, bookstore, or coffee shop. If your plan is to open a store, try e-commerce first to build up capital and a market for your products before spending thousands on retail space.
4. Be Your Own CFO
Accountants are expensive — don’t plan on hiring one until your business is bringing in good money. Keep your own books using a simple spreadsheet or one-time-purchase software that can walk you through managing your expenses.
5. Use Free Software
Software packages can be expensive. The internet is full of free and cheap resources that you and your employees can use. Rather than opting for software or online resources with a variety of costly features, opt for inexpensive or free versions. As your company continues to grow and bring money in, you can start looking into pricier subscriptions.
6. Outsource
When you’re an entrepreneur, time is money. Some tasks you can easily do yourself, others waste more time than they are worth. Rather than hiring an employee to take care of tasks that you don’t have time for, consider finding freelancers online to do the work for you.
7. Register Intellectual Property
Registering copyrights, trademarks, and patents for your products and ideas can be a high cost initially. You might be tempted to skip this step to save money but it is definitely worth the investment and will pay off in the long run.
8. Advertise on Social Media
Platforms such as Instagram and Facebook offer free and inexpensive ways to market your brand and reach your potential customers. Ads on social media can be targeted to your specific market, giving you some great bang for your buck. Business pages, groups, and accounts are free and shareable.
Follow these rules and your shoestring budget business is sure to get off the ground and become a success.
