So you have an awesome business idea, and you are so eager to start. But you have one big problem…money! Lack of money or startup capital has been a major reason people have been unable to start a business.
Startup capital is usually the first thing needed to start a business, and most people, usually, don’t have it. Even after you finally start, you will still need money for your business to grow.
No matter how established a business is, it still needs money to run. That is why most investors like to know if the business they want to invest in is viable or not. Cash flow is the most important aspect of every growing business.
The good news is that before and after you start, you can save money to run your business, organize budget, and be strategic about spending.
Here are ways to go about it:
1. Partnerships: You can start your business by partnering with someone who can bring in the funds, while you bring the ideas and do the day to day running. Strategic partnerships are a good way to start or run a business without worrying about money, all you have to do is to be the brain behind the idea, while someone else brings in the money.
Another way of partnership is by exchanging your services with other people, in exchange for their own services. For example, if you need someone to help you design your company logo, you can pay them by offering them your service.
2. Contractors: When you’re just starting out, you can hire people on contract basis. Full time staff come with a higher amount of money, but contractors only get paid on contract basis.
This is a good way of outsourcing your work. If they bring you clients, they will get paid a stipulated amount from the income. Outsourcing also reduces the workload for you while you focus on building your business.
3. Templates: Use templates when you’re just starting out. For example, instead of hiring people to build websites for you from scratch, use templates that are available online. Business plans also come with templates, use them too and when you eventually get to that point where you can afford it, hire a professional to build you a one.
So many start-ups hire people to run their social media pages for them. There’s nothing wrong with that, but you must be able to reduce overhead costs as much as you can. So why don’t you pick up your phone and run your social media ads and campaigns yourself.
4. Marketing: You can either look for people who will market your business door to door on commission basis, or you find effective ways to market your business yourself. This includes digital marketing.
5. Get Some Help: If you have decided from way back that you would run a business, then you should have been deeply involved in mentorship. Mentorship is really great for someone who has huge plans for themselves. Network and move with the right set of people.
Build a relationship with your mentor and let them know what you are doing. You can get free ideas and nudging in the right place from time to time from them.