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Jayson Goetz

Jayson is a strong believer that you don't have to be wealthy to live a rich and full life and wants to share tips on how to do exactly this. Whether...

Five Tips to Starting a Business when Funds are Low

No money to start your business? No problem. Don’t allow your lack of funds to keep you from pursuing your business goals. If you take the time to learn how to run a business, and take the right steps to start that business, money will be no obstacle. By fleshing out your business idea, creating a budget, and working hard to generate cash flow, you can find your way to a successful business. Remember, “the things you regret most in life are the risks you didn’t take”- Farhan Masood.

 

 

Flesh out your business idea and don’t quit your day job.

The most important aspect of starting a business is having a unique idea.  But while your idea may be unique, it might not succeed in practice. Be practical and maintain a steady income while taking the right steps to flesh out your business idea. This will guarantee your idea is sturdy enough to be the jumping off point of your venture. Here are a few questions to help work through your business idea:

  • What value does your idea generate?
  • Is there a target audience? If so, do they need your product? Do they want it, or see it as a luxury?
  • How many competitors exist in the market? Are they making money?

 

 

Creating a Budget

In order to get a great business idea off the ground you will require venture capital. But just how much do you really need? It is important to have a clear picture of all startup costs, without it, you cannot start asking investors for the money you need. That is why it is important to keep a budget detailing all current and future expenses.

In addition to budgeting for all startup cost, you also need to plan for unexpected expenditures that happen unexpectedly when starting a new business. Keeping a budget will help to ensure the long-term success of the business by helping you stay on track.

One tip for staying on budget is minimizing cost wherever you can. For instance, you can save up to thirty percent on your energy bill by requesting an energy price comparison. Any helpful money saving tips around your office will put more money in your pocket that can go toward future business expenses.

 

 

Sell Your Services, Make Something, or Resell Something

Along with getting the money to start your business, there is also cash flow required to sustain it. A great way to generate revenue is by selling your services. If you are a product-based business, you can easily pivot to a service-oriented business model. First, provide services, then collect funds. You can also use your services as a bargaining tool. Exchange services for deals on the things you need to run your business.

In addition to selling your services, you can also make something to generate cash flow for your business. Again, if you are already a product-based business, this will be easy. If not, consider selling a persona or branded creation. Platforms like Etsy, eBay, and Amazon are great sites for listing your product.

 If you are not keen on arts and crafts, consider reselling something you already own. All you have to do is acquire products and turn a profit. You can use drop-shipping to acquire and ship your goods directly from the manufacturer. With this method, you turn a lower profit, but you require less space and money up front.

A more profitable option is wholesaling or collecting items yourself at trade shows, yard sales, antique shops, etc., and shipping them from your business address. This requires a lot of money and space, but you maintain more control over the product and selling price.

 

 

There Is No Alternative for Sweat and Hard Work

If you really want something, you will have to go all out to get it. When starting a business, you will wear many hats, so a little determination and perseverance will go a long way. You may have to go from knocking on doors one moment to closing your own deal the very next. Hiring employees to do these tasks can get incredibly expensive. Thankfully, using interns or employees who work on commission can help to cut costs.

You must also be ready to sell yourself while networking with people. You may need to attend events such as trade shows, networking events, or galas to make connections in your market and get your name out to prospective investors.

Hopefully if you have networked correctly, you will have a few people interested in your product or idea. It can be very helpful to run a trial and gather feedback on your business idea, model, or product. The initial feedback will aid in the refinement of your business and, if necessary, can lead to a much-needed pivot.

 It is important to remember that your hard work will pay off, maybe not in the first few months or years, but all successful businesses require foresight. “Chase the vision, not the money; the money will end up following you.”  –Tony Hsieh, Zappos CEO.

 

 

Get Creative. Money Literally Grows on Trees

If you are having trouble obtaining funds, don’t get discouraged. There are numerous funding sources out there including the traditional sources and new funding sources that are lucrative and vital to all new businesses.  An example of these new sources are crowdfunding platforms such as Kickstarter and GoFundMe.

A more traditional way of securing funding would be acquiring a small business loan. There are multiple loan programs out there for first-time entrepreneurs. In order to apply for one of these loan programs your business must meet the following criteria:

  • Must operate in the U.S.
  • Must qualify as a small business according to SBA guidelines
  • Must operate for profit
  • Owner must have a good credit score.

Another creative way to raise money for your business is participating in a business incubator. This program is especially helpful for startup companies because most incubator programs are sponsored by colleges or local organizations.  All you have to do is apply, be accepted to the program, and you automatically receive funding.

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