Here are a few life hacks for aspiring entrepreneurs
Creating a business is a great opportunity to work on your own terms and implement your boldest ideas. At the same time, many businesses are started by young entrepreneurs who often have nothing more than enthusiasm and vision. It is clear that any business idea needs money to solidify it. However, a scarce budget doesn’t mean you should give up on the project you have in mind. Creating a low-cost startup is possible, as long as you know where to look for the initial funding.
Stick to a low-cost business model
Your ambitions may be grand, but your limited budget is what defines your initial business model. Being thrifty for a good reason, you should choose the type of company which requires few props and fixed costs. For instance, consulting services or SMM may be provided online and their main asset is your knowledge and skills. Your preferable business needs no large storage area, little or no office space, none or few paid subscription services, and no expensive equipment or tech. Ideally, you should be able to start such a business without paid helpers or employees.
Channel your budget wisely
When your funds are scarce, you should clearly define the critical aspects of your business model. Those areas will need the most financing. Other business aspects may be a subject of minimizing costs. For instance, if a separate office is not crucial for your enterprise, you may share one and split costs.
Don’t order large amounts of stock supplies only because it’s cheaper. Think about the cost of renting storage space, and the chances you’ll sell all the stock. Look for ways to save on utility costs, transport and delivery, etc. For instance, making your office green and “smart” with the help of innovative tech may require costs upfront, but will pay off in the long run. Consider all the alternative service providers and compare their price plans.
Free stuff and DIY
Do some research on the free online tools essential for running a small business. Document management tools, business apps, accounting tools, email marketing tools, and productivity management software are often available online free of charge. If you try hard, you’ll also find free business consultations that can help you manage the startup.
Your web presence may become less costly if you do the web design yourself and spread the word about your products and/or services on social media. There are many low-cost or free courses on both design software and SMM. If you have artistic inclinations, you can also design your company’s logo, branded packaging, and other small details yourself. Depending on the amount of free time you have and the scarcity of your budget, consider which tasks you will not delegate to a paid assistant.
Look for sponsors
There are both individual and institutional investors in any country. If you need more financing than you have, be ready to draft your business proposal and present it to prospective investors. AngelList, LinkedIn, Seedrs, SeedInvest, Life Science Angels, Tech Coast Angels, and Angel Investment Network Blog – here are just a few popular websites to look for angel capital. Most angel networks also have web pages and social network profiles. Many angel investors are former or active entrepreneurs themselves. They provide valuable insights alongside financing to the freshmen startuppers. Therefore, networking within a local business community is always a good idea. Family and friends are also common sources of initial investments. In addition, numerous fund-raising platforms may help you reach your business goals.
Your first profits may be a good reason to celebrate or buy something you couldn’t afford before. However, investing cash back in your business is much wiser. There are no limits to perfection, so whatever nice business you manage to build, it can be even better. Having a thin budget, you usually start small, but you should be diligently working toward the greater milestones you have in mind. Successful reinvestments will help your company grow, attract more customers and more investors. If you spend at least half of your profits on developing your business, it can become more cost-efficient, more profitable and resilient. This will increase the value of the business without the commitment of liabilities.