How to get your Business started on a Shoestring Budget
Do you have a fantastic business idea, but feel that your savings won’t be enough as startup capital? Or have you even given up hope in carrying out that idea because of a lack of funds? You are not alone, as most people with the best ideas or innovations fail because of a lack of funding — CNBC.
However, you don’t have to join those statistics, as you can start your business with as little capital as you have and grow from there. This is where starting on a shoestring budget applies.
A shoestring budget provides a means for ideas to be implemented, with limited funds. It helps you execute your business idea, starting with as little as you have to keep the business going at the beginning. So, here are 6 ways to start your business on a shoestring budget:
5 Ways to Get Your Business Started on a Shoestring Budget
Forget about a business space
50% of businesses are based in the houses of their founders. And most of the big companies we see today, such as Meta, Microsoft, Disney, etc. started in their founder’s homes.
Now, while getting a workspace or physical store isn’t a bad idea, still, it shouldn’t be a priority at the early stage of your business. However, it can come later in your entrepreneurial journey, if it is necessary.
It is a digital world right now, and you will be amazed at how much work you can get done from the comfort of your home. Thus, saving you money and keeping you within your budget.
Related: How to Reduce Your Business Growing Expenses
Get a business model canvas
Another important thing to do when working with a shoestring budget is to get a business model canvas. What is a business model canvas and why is it important?
A business model canvas is a tool that helps you understand your business in a structured way. It clearly defines the audience you would serve, the value you would offer to that audience, how you would make profits, how your competitors’ businesses operate, etc.
And as a small business owner, you need these insights to make solid decisions that would move your business forward and help you scale fast. It is a mini business plan that helps you define everything about your business. Also, it serves as a point of reference for investors and other stakeholders to get a full understanding of the value your business is creating.
We created a business model canvas for small business owners to get a deep understanding of their businesses. It is a must-have tool to help you gain clarity at the beginning of your business journey. Get yours today.
Create a budget ASAP
In starting any business, you must have a budget. And since you are working with a shoestring one already, you would need to sacrifice many things.
To start, you need to prioritize things that would bring sales to your business. This will help you decide what is essential, what is not, and what you can keep aside.
Your budget also helps you know what you can and cannot spend. And while this may be hard to do at the beginning, with time, it gets easier.
Take your time making business purchases
In starting any business, even on a shoestring budget, you still need to buy some equipment or tools required to run the business. However, because your budget is tight and you need to save as much money as possible, then you need to look for the best and most affordable deals.
Take your time to ask around, and compare the prices and specifications of each item, before you buy. This helps you get adequate knowledge on the items being purchased, to aid your purchase process now, or later in the future, when getting another one.
You would love: How much is right? How to fix prices in your small business.
Invest in affordable marketing tools and strategies
Marketing is essential for every business, and being on a shoestring budget doesn’t mean you won’t do it. So, your shoestring budget should have room for both accessible and affordable marketing tools and strategies.
For marketing on a tight budget, social media platforms are a great place to start. You could also consider using software like Canva for your graphic designs, Capcut for video content, Google Suites for all business-related documents, and free email marketing software like Mailchimp for emails.
Also, check out our course on how to market your growing business. It is a must-have for every small business owner.
Scaling with a Shoestring Budget
Starting your business on a shoestring budget requires that you are deliberate about how you use the money available. Thus, you need to prioritize the essentials that move the needle and bring returns to your business. And one way to achieve this is by creating a budget that helps you clearly outline what you need and what can be deferred till later.
Do this, alongside other tactics stated in this article, and you would be well on your way to launching a world-class business, even on a slim budget. Need to speak with an expert on how to better achieve this, send a message to us @hello@triiftafrica.com or visit our website.
At Triift Africa, we are passionate about helping small business owners start and grow their businesses with easy access to funding and business resources.
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