Important Money-Saving Methods for Starting a Small Business
These days, it seems like everyone can start their own business, from millionaires to teenagers. But while around 80 percent of workers claim they would love to have their own company, only about 11 percent of them actually take steps to making it a reality.
The biggest barrier to starting a business? It’s always money. And yet, the idea that you need a large amount of cash to finance a start-up is pretty much a myth.
According th Wells Fargo, the average small business owner began with less than $10,000.
Depending on the type of business you start and what your needs are, this can end up being much less. If you’re still worried about the costs of getting a business off the ground, there are plenty of innovative methods for funding your company that are right there waiting to be used.
When people think of crowdsourcing, they imagine Kickstarter campaigns and basically soliciting for donations from everyday internet users.
But for small business, the crowdsourcing trend can be much different. You can tap into a wealth of creative and innovative thinkers and elicit help with your website design and positive leads for your business.
Many companies run contests promising designers a percentage of the profits from products they help with creatively.
Others simply find people with amazing skills who will work for far less than agency professionals. Most entrepreneurs are surprised to learn the number of things crowdsourcing is actually good for.
2. Do Everything Virtually
You probably already know that you don’t need to rent an office to own a business. But working from home doesn’t mean you have to always be a one-person show either.
With online, freelance workers like the ones you can find by crowdsourcing, you can collaborate with people on the internet.
And through social media, the cloud, and other forms of data sharing, it’s possible to formulate a cohesive business platform together. Don’t spend a lot on expensive software, either.
Use free websites and mobile apps and focus your advertising on low-cost online methods.
You don’t have to grow your business overnight, and waiting until you have a proven revenue stream before you expand offline – if you ever do – is a fine strategy.
3. Manage Your Expenses Wisely
Usually, people who start businesses with thousands of dollars in funding end up blowing it on counterproductive business strategies anyway.
The secret isn’t how much you have, it’s how wisely you spend it. As soon as you start to see cash coming in, think about hiring an accountant.
You’ll save money if you hire a freelancer on a part-time basis, but this is one important investment many business owners overlook.
The right accountant can help you prepare for your first year filing business taxes and get you the valuable refunds and write-offs that can mean life or death to many growing companies.
Spending what money you do have on financial management and not flashy logos or ad campaigns will help you survive when your bank account is a little dry.
When you’re starting a business, forget all the rules about how much capital you’re supposed to have or whether you need to invest in trade show booths and billboards.
Don’t be afraid to start small. Most new businesses don’t survive the first five years, and the ones that do give themselves room to grow.
Don’t make the mistake of thinking your tiny online business will always be tiny, because these days, many million-dollar companies started the same way.
Thanks to the internet, anyone can launch their company idea from their living room. And anyone includes you, too.