One of the most common questions that banks get asked is: how can I start a business if I don’t have much cash and don’t want to borrow too much? Bootstrapping a start-up is quite common, and can be achieved with some creative thinking and forward planning.
Bear in mind that the easiest businesses to get off the ground with limited capital are those that don’t require a great deal of resources or initial outlay. These are generally service-based businesses, such as wedding planning services, counseling, teaching or other types of consulting.
For manufacturing or product-based business, it’s still possible to build a successful business with limited capital, but it’s important to direct every dollar where it matters and be prepared to stick with it for as long as it takes to break even.
Minimizing costs and eliminating expenses wherever possible are also key, and this means harnessing free business support and the business owner doing as much as they can themselves. Hiring staff is a luxury that often has to wait. Working from home is a great way to save on overheads. Social media can help with marketing since it’s mostly free, and using free, cloud-based accounting software is another good savings device.
The below article looks at other considerations when starting a business.
Read the full article at: www.blackenterprise.com