It’s not always easy to get start-up money or to find investors when you want to start up your own business. In fact in this struggling economy even getting friends and family to invest in your business is an extremely tricky job. These days many people are therefore, running their businesses on an extremely tight budget. Here are five tips that can easily help you get started with your business idea even if you might not have the budget you hoped you would.
1. Follow Your Dreams
Ok, this one might seem a bit obvious but when money is tight you have to be truly interested in your business’s goals and products and customers to make it work. If you’re stuck with a business you started just because everyone else was doing the same thing and it was popular then you’ll never make it work. You’ll lose interest quickly, your passion for the idea will wane, and as soon as you realise how tight your monetary situation is your loss of interest in your business will accelerate even faster. The idea for your business might be excellent but if it’s an area where you have little or no background or interest then you will constantly be playing catch-up with your competitors and this is a way to ensure that your business fails.
2. Avoid Loans As Much As You Can
Taking out loans at a time when money is tight might seem like a way to get over the proverbial “hump” as it were. After all, you have to spend money to make money, right? Well, yes, this is true, but taking out loans when you’re not 100% sure of your ability to pay them back is generally not a sound idea. If your budget is tight, then think small and act small. You may have the greatest idea in the world, but instead of taking a huge loan that puts you in debt that you can’t get out of, take a few smaller, more coordinated “hops” towards your ultimate goal one-by-one as you can afford them. You want to be the tortoise here and not the hare.
3. Run from Home
Especially if you are a new business, running your business from home can be the clincher that makes your idea a success. In this economy renting retail or office space is expensive! You can save yourself this expense by running your business from home. The money you save on rent and facility costs can be put towards other ideas that will expand your business and allow you to generate more profit. The internet is your friend. Learn to love it. If you have a goal of opening your own storefront or office space then it might be good to make this a more long-term goal for when your business is, shall we say, a bit more “robust.”
4. Have a Support Team
Things won’t always go your way. This is especially true in today’s troubled economic times. The successful business owner knows when to ask for help. When considering your business plan, make sure you have factored in a group of family members, friends, and other contacts that you know you can rely on when money gets critically tight. Because it is a good idea to avoid loans unless you know you can pay them back, having other ways to get the help you need is important. Perhaps you know some friends you can ask for help designing your web page so you don’t have to hire out additional help. Maybe a family member can help you with your taxes that year? Whatever the situation, knowing that there are a few people you can count on to help out when things get tough can make the difference between a successful business and a failure.
5. Be Well Read and Researched
Before you get started it is important that you do your homework like a good student! Read about other successful businesses in your field, see how they made their plan work, brainstorm ways your business can be unique, research local demand for business such as yours. This can take a while. It’s not like that paper you pulled an “all-nighter” on back in college. No, if you’re starting your own business, then it is critical that you take your time and consider everything you can before you go and try to make it a reality. This can allow you to use your extremely tight budget in the most effective manner and ensure that every penny gets spent well.
Today’s economy is tough. You may be forced to tighten your business’s purses a bit. But even in this economy, successful businesses are born every day. You can make it work. Just keep in mind the above five tips and be prepared to put in a lot of hard work and effort!
Laura is a writer for www.realbusinessrescue.co.uk, a website that is full of useful information for those struggling financially in business.