Do you have a great idea but limited funds? Do you think you could be the next Zuckerberg but you do not have any finance? Do not fret. You will still be able to achieve your dreams. When you decide to start your own small business and the funds are limited or non-existent, then it is important to start the process from a different perspective. Instead of identifying the gap in the market, you should rather identify what your skills are and what resources you have available to you. Here are a few questions you need to answer when starting your small business on a limited budget.
Who are you?
It is important to know what skills you have and how you can use these skills to create a sustainable business. There are three aspects which can greatly contribute to your decision as to what type of business you should run. The first is your skill set. What abilities do you possess and do you have the required documentation needed to go into the field you want to. The second is your past knowledge. What have you learnt and experienced as an employee for other companies and how can you use this knowledge to build your business. Thirdly, what tangible resources do you have available to pursue your chosen venture.
What are you prepared to lose?
It is important not to overextended yourself when you start your business, especially when you have a limited financial pool from which to draw. Make sure you only invest the amount of money that you are willing to lose if your enterprise should fail.
Who do you know?
It is important to network and promote your business within your known network. Let your friends and family know what you are doing so that they can spread awareness of your business through word of mouth. This can also open up doors for you.
How much sweat equity are you willing to invest?
Starting a new business is hard work. You will need to put in long hours and you may even have a few sleepless nights in the early years, but consider these seeds which you will harvest in the long run. When you start your business you will also have to wear a lot of business hats and be prepared to do most of the grunt work of your business yourself.
Are you adaptable and willing to experiment with ideas?
One of the great advantages of a small business is its adaptability. Therefore, it is important to be at the heart of your industry and be willing to adapt should you see the need to. You are also able to experiment with various ideas and keep those which add value to your business.
After you have answered these questions, you can decide on the type of business you would like to run. The following types of business can be started with limited funds
- A consultancy is a business in which you offer advice to other businesses based on the expertise you possess.
- A performance-based business is an enterprise for musicians or public speakers.
- A brokerage is when you play the middleman between a business and a customer. Types of brokerages are Property24 and GroupOn.
By utilising the resources you have available, and networking within your business community you may just hit the jackpot. Go out there and conquer the world even if you have limited funds.
Proudly brought to you by the National Small Business Chamber (NSBC).