(ThyBlackMan.com) Many people consider starting their own business but then they feel overwhelmed, daunted and never get it past the planning stages. Especially if they have mediocre or bad credit, starting a business the traditional way can be a monumental task; not for the faint of heart. Figure in start-up costs such add location, equipment, supplies, and other fees plus related costs and the numbers can be very high. However, you can start a business without the need for borrowing money or having a large budget if you work smarter as opposed to working harder to achieve your goal.
Many entrepreneurs who begin businesses with a large amount of capital tend to fail quickly. Consider this: Eighty percent of new businesses go bust within the first 2 years. Money does not necessarily equal success. Assuming that you need a large budget in order to start a business is incorrect. If you have no clients, do you need to have a fancy location or spend the money to incorporate or form an LLC? No? When you spend your entire budget doing all of the things that you feel that a business
should do, you lose focus on what is important, which is your business model; regardless as to whether your business idea is a good or service.
Bootstrapping is when you start a business without using outside capital while confident with determination, drive and some creativity; countless entrepreneurs have started successful small businesses with little or even no money (seed capital). Without having capital to throw at every problem along the way, start-up business owners tend to pay attention to every little detail, often misinterpreted as micromanagement in some circles. This procedure will ensure that the business in question is solid and running to the best of its abilities. So then, how can somebody start a business on a bootstrap budget you might ask? Try these on for size:
Home Office
Every big company started somewhere; Apple Computers started in a garage. Instead of worrying about paying money for a “business location” which includes expenses for rent, insurance and signage, start your business at home. Use your garage, your basement, or a spare room to set up and start your business. There are many associated tax benefits for those having a home office as well.
Choose your Business
What is it that you want to do? The best recommendation and some of the most common advice given is that you need to pick a niche that you are passionate about. Why is passion important? Starting a business on a limited budget is not advisable for those with small ambition, no/low self esteem or a shaky work ethic. Entrepreneurs are willing to roll up their sleeves and jump into their business, hands on. Because of the time that must be dedicated to building a successful business, like any intimate relationship, on a bootstrap budget requires one to love what one does or become burnt out with the circumstances very quickly.
With a limited budget, you need to keep the scope of your start-up small. If you require a lot of space, equipment, staff or other large expenses, you need to downsize the scope of your business. Starting big on a small budget is not possible. What is possible is starting small with the idea that you will grow and expand your business as you become more successful. Thanks to the internet, marketing is easy and you no longer need to rely on having a visible storefront to bring in passing traffic.
When choosing your business, do some research about the closest competition. Check out their reviews online and see what the main complaints about their business are and then you already have a slight leg up on the competition if you can improve upon what they already offer. Before setting a price for your goods and services, know what the competition charges but be careful to not sell your goods or services at a price that eats up all profit.
Test out your services or goods on others before you begin your business; this helps you fine-tune what you are offering. Be open and receptive to constructive criticism. You’ll want people to give you honest feedback so you can improve. Get people to try what you have to offer and get their honest feedback. Without a market for your product, you will not get very far so put in some legwork before opening to ensure that what you are going to offer is something that people will really want to buy.
Think Outside the Box for Funding
Have an awesome product but need more money than you have to get it off the ground? When banks turn you down, there are other ways so do not despair. Online funding sites such as Kickstarter and Indiegogo are becoming increasingly popular and they work as marketing campaigns at the same time. You can help raise money while getting the word out for what your business will be. Do not pass up this as an opportunity to raise business fund and market yourself at the same time.
Build a Presence
The beauty of the internet is that nearly everybody is on it. Online marketing can be done for no money at all, or for very little. Get your web presence built up quickly. Social media such as Twitter and Facebook are necessary for any small business. Do not just start a page and leave it; you need to interact with people because that is what they expect from social media. Use it for a marketing campaign, a way to showcase whom you are and what you have to offer.
People like to see whom they are dealing with so consider a YouTube channel, especially if you are starting a service of some time. YouTube videos can be linked to your other sites to help increase exposure. If you do not have your own website, you can start a blog free. An active blog for your business, updated often is a must. You do not have to pay for online advertising if you stay active on social media and your blog, saving you money. For websites, consider Wix for free websites. Do not discount advertising your services on Craigslist either, another free way to get your name out there.
If you want to build a local presence, start paying attention to when and where local fairs, swap meets, carnivals or even conventions where other small businesses get together and then start going. A simple booth or tent at a county fair will widen your exposure greatly and a less expensive option is to set up at local swap meets. You can design and print your own marketing materials from home to hand out.
Starting a business on a limited budget is easy. The hardest step for many is going from the talking about it stage to the making it happen stage. If you want to start your own business, stop talking about it and just make it happen, no more putting it off because you can find success on a bootstrap budget.
Staff Writer; Stanley G. Buford
Feel free to connect with this brother via Twitter; Stanley G. and also facebook http://www.facebook.com/sgbuford.
