Before Starting a Business, Save as Much Money as You Can March 23, 2011Posted by SBDC in Small Business General.
Finding money is one of the hardest first steps an entrepreneur needs to do when starting a business. The amount of capital a business has – and manages to raise – can spell the difference between success and failure.
All too often, however, many small and home-based businesses start without any money saved. Worse, some don’t even have any money at all. Instead, they are putting all their hopes that the business that they are about to start will bring them money.
Unfortunately, as the saying goes, “It takes money to make money.” Without any money at all, it will be very hard — not impossible, but very hard — to successfully get the business off the ground. If you don’t have any money and still wants to start a business, here are some things to consider:
You need to have tons of creativity on how to stretch the few dollars that you may have. Expect to do a lot of hard work yourself, and use every free strategy that you can think of. For example, instead of hiring a web designer to create a website, you need to learn how to design and develop your website. Instead of spending on banner advertising or cost per click advertising, you need to work hard on finding effective shoestring marketing strategies such as word of mouth advertising and the do-it-yourself marketing.
2. Prepare to compromise — a lot.
Without having any resources, you may be forced to cut a lot of corners and compromise on a number of things. For example, the inventory you will buy may initially be very limited so your vision of starting a one-stop home furnishing online store may not come into fruition immediately.. You may need to downsize or break down your overall business plan into tiny little pieces based on the resources that you have.
By : Isabel Isidro