How To Start Your Own Business on a Tight Budget - Broke in London


How To Start Your Own Business on a Tight Budget

By Emily Taylor

Thanks to technology, it’s now easier than ever to start a business with little or no money. Although access to funding can be difficult as banks are warier of lending cash to start-up businesses, especially in a tough economic climate. However, there are some simple steps you can follow to help launch your small business with little cash needed.

Maximise free services

There are plenty of free services online to support you in your new business venture. There are hours of tutorials online to help you understand the high and lows of small businesses as well as government documents that explain legalities and procedures in place. Use social media to promote your new business, as it’s free and an easy way to get plenty of exposure whilst growing your following. Research how to create a free website to get you going – you can invest in a flashier one later down the line. There are also free sites which help with the finances such as invoicing. For example, you can create your business invoice with freshbooks.com – this will help you seem instantly more credible.

Create a business around your skills

Think about your skill set. What can you do that others would pay for? Whether it’s delivering parcels, making clothes, or teaching a foreign language, there are many ways you can turn your skill or hobby into a business. If you already have a skill that others would pay for, then you’re immediately at an advantage.

Sell a service that people need

Think about services that people are always going to need, such as gardeners, painters and decorators, birthday cakes, or alteration services. These are likely to be more successful than choosing to make or supply non-essential gifts or services such as candles or personal training.

Ask for payment upfront

If you’re a small start-up business, customers should understand your need for upfront payment. It will help you to purchase supplies and cover costs, but also keep your cash flow smooth. Late payments are one of the largest causes of failed businesses, so be sure to have a payment plan in place. Here’s some guidance to follow if you’re owed money by a client.

Be resourceful with equipment

Search online for free local equipment to borrow or pick up locally. Often businesses need to get rid of out of date equipment so you’ll find you can pick up lots of equipment with a quick online search – there are plenty of online platforms you can use. People are much more aware of waste and therefore keen to recycle or rehome items – you’ll be amazed at what you can find for very little cost!

Don’t get sucked into fixed costs

Use freelancers and flexible working spaces as and when you need them. For example, hire a working space by the hour or freelancer by the day to keep costs to a minimum.

Keep working the 9-5 job – for now

If you have a job, hold on to it for now and use your spare time to work on your new business idea. Then you can put as much income as possible back into your new business. Only give up your day job when you’re getting a steady income from your new business and could consider taking a wage from it.







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