You will find when starting a new business that there are many challenges and obstacles to overcome to truly find success. However, your business journey can be made all the more challenging when you only have a small amount of funding to get started. Even though money is essential to start your business, there are ways that you can use some alternatives methods to help you get started. Here are some options for you to use when starting your business.
How Much Money do You Have?
Before you start to build your business, you need to know what you can afford and what you cannot. Think about what money you have available and try to save some additional funds if you can. You can also think about your debts and ways you can resolve them to make them cheaper. Companies like Bonsai Finance offer ways for you to deal with and consolidate your debt so you can save some money. As well as working out how much money you already have, you also need to think about where else you might be able to obtain money to get your company started.
Finding Additional Funds
When it comes to finding funds, your options are often guided by your circumstances. If you have a poor credit rating, then many of the traditional options such as the bank, might not be suitable. However, there are still options open to you, including friends and family or special grants. Your friends and family are one of the best ways of getting financing, mainly because they trust you and they know your situation. They might also be more lenient with the length of time you repay them. Another option is looking to see if there are any grants which help small businesses in your area. Often these are interest-free, or they require no repayment. Your business might have to fulfill certain criteria to apply, but it is worth asking. One way of securing funding that has become popular lately is crowdfunding. It involves you putting your plan for your business on one of the crowdfunding websites and asking people to contribute to making it happen. Once you have your target amount, you can get started, all those that contributed will usually get a free product or special offers for helping you.
Setting Up Your Business Premises
When funds are tight, finding the best place to have your offices can be difficult. If you are going to be manufacturing products, then you will need somewhere that you can work and manufacture without it costing you too much money. One idea is to start your business from home, especially if you are not manufacturing anything. Working out of the spare room or even the garage will save you money on buying dedicated office space. It is also the better option for those who also have other commitments such as childcare or looking after loved ones. Running your business from home also means you don’t have the additional overheads that you incur with office space.
One of the biggest outgoings for any company is their employee’s salaries. For you, the idea of having employees might only be a dream, but it is possible to find people willing to help without costing you a huge amount of money. You might be able to ask friends or family to help you with the initial set-up and perhaps a few hours work here and there. They will most likely do it for you at a much cheaper rate, and you have the benefit of knowing them already. Another option is to hire freelancers; these are people who are offering their skills without all the problems associated with hiring permanent staff. You can find freelancers on various sites, and they will sometimes advertise on there what their skill is and how much they are charging. If you need something more specific, you can post a job description on the site and have freelancers bid on it. Depending on the level of skill you require and the length of time you need them will determine the price. It is important that you list all the requirements of the role so that the people know what they have to do for the money.
Having a website is crucial to your business, it is the storefront to your online presence and the place where most of your sales will be achieved. However, getting a professional website designed can be costly. There are now many websites that can help you to build your own website and most of them are easy to use and set-up. You don’t need to have any experience of coding, as they are usually dragged and drop what you want into your website. If you are not too worried about designing it all yourself, they often have templates of blank sites that you can customize. The best part about many of these sites is that they are usually free to use.
Marketing can cost you a lot of money, especially if you advertise on television channels or in the newspapers. However, there are other alternatives which make marketing cheaper if not free. One free way to get good marketing is with social media. Having a social media page for your business is free, and you can post updates and offers without it costing you any money. If you can gain enough followers, then your network will grow, especially if your products get good reviews. If you have a little budget for advertising, then you can pay for ads on social media. These are targeted at the types of people you think will like your products, and you can set how often your ads are displayed. It gives you a lot of control over your ads and your budget.
Although starting a business with little funding is hard work, there are ways that you can still achieve amazing results. If you have a clever marketing idea and a good product, then your customers will find you.