Want to start a business but are short on money? Here are the top tips for starting up with low funds
When you begin to tire of working a 9-5 and dream about being your own boss, maybe it is time to consider trying out self-employment? One thing that puts people off running their own business is the initial set up costs.
For many, those start-up funds are completely out of reach, and it can be hard to secure yourself any financial backing.
Low funds don’t mean that you have to drop your idea of starting out on your own. In fact, there are ways that you can start your business, despite not having huge amounts of money to back you up.
We have put together some of our top tips for ways that you give your business idea a boost, despite not having a lot of money behind you.
Use what you already have to hand
Whilst you may have grand dreams of your own offices or a fleet of cars. To start with, you need to think small. Work from your own home, and use your own car. That way you are keeping the initial costs low, and allowing yourself to build up some funds ready for when you want to expand your enterprise.
Agree on upfront payment where you can
A great way to get some money behind you in those early days is to ask your customers to pay upfront. If they are not keen on this idea, perhaps a half now, half later approach is better. It just gives you the funds that you may need to get by.
Get a great price for the equipment you need
If there is some equipment that you have to have before you set up your business, it is a great idea to shop around and see where you can get it for a great price. You could always look out for second-hand deals. In those early days, the idea of saving a few pounds could be much more important than having something that is top of the range.
Be a one man(or woman), band
As your business grows there is a good chance that you will need some staff to help you, but in those early days, you need to try and do everything that you can yourself. This will allow you to keep the costs down. You may not be able to pay yourself a big salary to start with, so only having to worry about yourself makes things that little bit easier.
Keep your job
Along the same lines as the above, you should always try to hold onto your current job for those first months. You will be thankful for the wage coming in, even if it may seem that you spend much of your time running between the two jobs. You could always cut down your hours as your business grows, all with a view to quitting once you are off the ground.
You are never going to succeed if you don’t work hard and in the most part, you only have yourself to rely on to make it a success. This means that you will need to be as productive as you can. Make the most of the hours that you can put into your business, and you will soon see the rewards for all that hard work come back to you.
Listen to episode 9 of the parents in biz podcast on ways you can raise money to download the free worksheet that supplements the episode get it here.