You have limited funds, but you want to be your own boss. Well, it can be done. Here are six keys to starting a small business with limited funds.
KEY 1: Do what you know
When choosing a business idea it is important to consider your skill set, your experience and knowledge in the field of business you wish to pursue. It will be harder to start a business on limited funds if you do not have any knowledge of the industry you wish to enter.
KEY 2: Research the market
Ensure that there is a demand for the product or service you wish to supply. Read articles and forums about the challenges people have in the business field you wish to enter, and consider how you can overcome them. It is important to be aware of the challenges and have a reasonable game plan to tackle them when they crop up. Additionally, consider the product you wish to produce and if your competitors could take it and repackage it. This is important to consider so that you can give a potential investor the answers they need.
KEY 3: Invest in sweat equity
When you start your own business with limited funds you will need to wear many hats. You will need to do your own accounts and marketing. Luckily in today’s day and age, social media has helped to cut the cost of marketing and you can easily get the word out about your business. In addition, you can use free online accounting services to help you keep track of your sales.
KEY 4: Give a great customer experience
Many people are often more concerned about the customer experience than about the product. If you offer excellent customer service, you could be well on your way to securing a return customer and someone who will be a brand evangelist for your product or service. Word of mouth is the best way to market your product.
KEY 5: Invest in equipment which will give you great returns
With limited funds it is important to only spend money on equipment which is crucial to the running of your business. If your business idea requires a large initial capital outlay, it may be advisable to reconsider it. Many service-based businesses can be started with limited resources. Furthermore, when you have made some capital you can reinvest it into your business and work on turning your service-based business into a product-based company.
KEY 6: Use your circle of influence
The first potential customers you will have are your friends and family. It is important to spread the word to them about the business you are starting. They may have friends who are interested in your product. Furthermore, they may have friends who would like to invest in a great business idea and could give you excellent advice about how to run your business.
Remember building a business takes time and a lot of hard work, but the reward in the end is worth the blood, sweat and occasional tears. By reinvesting the positive return on investment you make, you can go from strength to strength.
Proudly brought to you by the NSBC.