The old saying that ‘it takes money to make money’ is, unfortunately, pretty accurate. You certainly do need access to ready capital if you want to start a business. However, the idea that all new companies need a huge sum to get on their feet is an outdated one. You really don’t need to convince your parents to loan you their savings to make it happen.
On the other hand, starting a business with limited funds is always going to be a big challenge. It requires a lot of financial foresight and the ability to budget like a pro. It’s not impossible, but you’ve got to be clever. Often, the secret to success is to keep tight control on those overheads and ensure that startup expenses stay small, so that you can invest in accelerated growth.
This guide to launching a small business on a tiny budget will give you some inspiration.
Set Up a Remote Office
One of the easiest ways to shrink your expenses, particularly during the first year or so, is to operate from home, with support from Servcorp office space. This innovative provider offers access to a full range of corporate resources, and they can all be handled remotely.
This means that, even if the main bulk of your work is done from a non-professional location, you get to claim a professional address and log in to the network to utilise the tools. They include mailboxes, receptionists, admin services, and much more.
Be a Sole Proprietor
It doesn’t usually cost anything to register a sole proprietorship, so it’s a good option for one man teams. The owner, in this context, is responsible for the financial value of the company and any debts it might accrue, but the business isn’t considered a legal entity.
It’s a helpful place to start because the costs are minimal and you always have the option to become a fully registered entity further down the line. Think of it as a way to generate profits and get used to the market without putting yourself in too much risk too early on.
Don’t Buy Your Equipment
Once again, it will be necessary to upgrade later but, for the moment, you can get away with renting costly equipment or accessing it on a ‘pay as you go’ basis. Virtual offices and coworking spaces are great for this, as they allow tenants to pay for only what they use.
For instance, you could register with a virtual facility and get access to world class software. The price stays low because you’re sharing it with others. It isn’t being rented outright, so you don’t have any responsibility either. The maintenance is taken care of by the provider.
Look for Long Term Contacts
When searching for vendors, prioritise those who understand that a little wiggle room here and there is a form of investment. It’s a kind of ‘you scratch my back, I’ll scratch yours’ scenario. Ultimately, the best way for suppliers to get value out of your business is to help it grow.
There are plenty of partners out there who do acknowledge this, so try to find vendors that will work with you, even on tight budget plans. Then, when you’ve grown a little and are starting to find your feet in the market, show your loyalty by taking opportunities to them first.
Why ‘Startup’ Doesn’t Have to Mean Hard Up
There’s no doubt that money rules the roost in the world of business and, the more you have, the easier it is to get started. You’ve got to remember though that cash is no substitute for creativity, ingenuity, or hard work. These three things are essential.
They can’t be bought, while money can always be generated. So, don’t be discouraged from following your dreams and launching a company just because you don’t have a gaggle of angel investors behind you. Often, the more challenging journey is the most interesting.