Do you want to start a business, but think the financial burden is too much? Maybe you’re finally taking the leap, but need advice on how to remain fiscally responsible? Starting a business is scary. Without a doubt, the scariest part is worrying about where the start-up money will come from. If you’re planning to start a business but are concerned about your budget, here are five tips that will save you money.
Bootstrapping is when a company starts with a set investment and doesn’t spend additional money until after it sees a profit. Essentially, don’t spend money until you make money. The wonderful thing about this is that it gives you flexibility. If you have good financial support, you can spend hundreds or thousands of dollars getting started. On the other hand, you can also start your business with a $0 investment and still be successful.
Personally, I started my Amazon and eBay retail business with an initial purchase of just under $250. Using bootstrapping, I profited over $50,000 my first year and am on pace to more than double that number this year. The cost was low and anxiety about finances kept to a minimum.
Utilize Free Resources
There are several fantastic free resources for starting business cheap. All you need to do is find them.
Begin with a simple Google search. Decide what kind of business you want to start and then see what’s out there. In my case, I searched “starting an eBay business” and found a plethora of options, many of which were free!
There are other free resources out there too. For example, if you’re starting a catering business but can’t afford to rent a space, consider using your own kitchen. Or you could make a deal with your local church – you use their space for free and, in return, you agree to cook event meals.
Ask for Help
Don’t be afraid to utilize family and friends. Maybe your mom loves to cook. She would be a great asset for your catering business and, best of all, she loves you enough to do it for free!
While eBay and Amazon are my responsibilities, Ryan is an enormous help all the time. My mother has also assisted when I sell goods at conventions. I hesitate to call it “free labor,” but it kind of is. It isn’t just about saving money, though; it also allows for quality time and bonding with the people you enjoy spending time with most.
Honestly, it’s a win-win.
Try a Kickstarter
If you aren’t familiar with Kickstarter, this is a great way to start a business on a budget. In fact, you have zero risk regarding the start-up funds because you don’t start spending money until after you have customers. All you’ll need to do is establish how much is required to be profitable, set a product price accordingly, and then launch. If customers like what you’re offering, they will pledge to purchase it once you reach your sales goal.
Personally, I haven’t tried this yet, but even major businesses use Kickstarter when introducing a new product line. It’s a great way to market what you’re selling and you can start right now!
While I started my first business in retail, there is actually less risk associated with selling services. You don’t have to worry about sourcing products or working with manufacturers to create your custom product. It’s a simpler process, costs less, and can be very profitable.
For example, my freelance writing business is extremely low risk. I take work when I can and charge what I need to in order to make it worth my time. The same applies to virtual assisting, event planning, and providing financial guidance, among many other possible services.
Just remember, the key is to establish your initial investment and then only spend money after you start seeing a profit. Use the free resources available to you, including family and friends! Also consider selling services, as it can be less risky and more cost effective. If you are selling products, try launching your business with a Kickstarter.
Now get out there and use these five tips to start your new business on a budget!