6 Things to Consider When Starting a Small Business Without Initial Investment
Starting your own business is an exciting venture but even for a small company, it can be hard to have the money needed to get things up and running. It’s difficult to predict how successful your business will be and if you invest too much money upfront, you may not break even in the first year. Be sure to keep these tips in mind while you start your own small business with little initial investment.
1. Keep Needs Limited
You may want to go all out and have everything you dreamed for your business at arm’s reach on day one, but until your business starts growing, it’s smart to keep things simple and within your budget. Assess the investments that you truly need to initially run your business.
Will you need to pay support staff or can you run the company on your own?
How large of an office space will you need to run your business successfully?
It’s important to set your business up for success, but you can’t expect to have all the latest and greatest tech upon first starting out. Prioritize your needs and add your wants to a “wish list” that you can reference when you start to have a steady revenue stream.
2. Research Everything Before You Act
Do your research on everything before launching your business.
Has someone else already captured your concept, and if so, how can you remain competitive? What office set up would be most beneficial for your operation?
Is your location in close proximity to your target market?
Once you have a solid business plan that you are ready to bring to life, research everything from building permits to efficient equipment. This research will help you not only launch a sustainable business but will save you from the misfortune of unexpected costs. Look into the technical aspects as well. Consider the proper permits and licenses you will need to keep your business running.
3. Save on Costly Utilities
Electricity can quickly eat up your budget if you aren’t careful. Fortunately, many companies offer intro rates for new accounts. Again, research everything before making a final decision, including pricing out gas, electricity, wifi and any other amenities from various third-party companies.
Don’t have multiple electricity suppliers to choose from? Make sure that your local electric utility has you set on a fixed rate plan rather than a variable rate so that your electric bill doesn’t fluctuate. If you will be the primary employee and will be using Wifi, or you won’t be needed in person for your customers, you can opt for a cheaper Wifi package.
If you’re in the restaurant industry, research your waste removal and used cooking oil recycling options to determine how you can run your business in a way that is friendly to your wallet and to the earth. Utilizing sustainable business practices is a great way to incentivize investment from outside resources or get ahead if you’re planning to classify your business as a B Corporation in the future.
4. Take Advantage of Your Network
Do you already know a graphic designer? Or a best friend who owns a furniture warehouse? Your network may be able to help you with the start of your business more than you already realize.
Once you have an idea of your needs, call on your network’s skills (and physical items) to help you save. If you have a network of other business owners, they will want to help you out because they’ve been in your shoes too. Creating a partnership with them early on could help grow both businesses.
5. Outsource Funding
Having multiple streams of income to help support your business will take some of the pressure off you to foot the entire bill. Before signing off on any checks, do some research and try to secure additional funding outlets. If you have the support of other businesses or partners, discuss an investment opportunity with them to support your business.
Depending on the type of business, you may also be eligible for grants. It would also be wise to take out a loan that you can pay back over time as you start to grow your business revenue. Even crowdfunding is a realistic option for helping finance your business. Working with a financial advisor prior to launching your business can help you identify potential funding opportunities and ensure that your investment in your company can be supported.
6. Utilize Low-Cost Marketing and Communications Options
You will want to spread the news of your new business and promote. Fortunately, you can stay up to date with current trends and promote your business without breaking the bank. In the digital age, there are endless options for reaching your market and engaging your audience should be a top priority.
Purchasing a website domain can be as cheap as $10 for a year, and Wordpress is a great option for hosting your site. Wordpress is user-friendly, attractive, and best of all can be maintained for a low monthly fee. Websites like Canva are great for creating marketing collateral and are free to use.
Starting a business with little initial investment can seem difficult, but with good research and budgeting skills, you can turn your business plan into a reality. Use these tips to get your business up and running.
