It’s a myth that you need a lot of capital to start a business. Indeed, there are many ways in which you can get started in many sorts of business with virtually no capital at all.
It may mean that your business won’t have the head start you want it to, but it does mean you can get some very important foundational work completed instead of not making any progress at all!
We’ve got some essential advice for startups that have a fairly limited budget.
Know your budget – and its limitations
This may seem too obvious to point out, but a failing here is what causes failure for many businesses. If you don’t have a detailed understanding of your expected incoming cash flow as well as your outgoings, then you’re going to find it difficult to come up with a good budget in order to save as much money as possible.
Calculate a budget and then stick to it. This is how you’ll best establish the limitations of your business.
Staying at home vs using an office
Starting a business doesn’t mean you need to get an office. Many businesses make the mistake of spending a lot of their budget on office rentals when they could have easily done the work tele-communicative project, at least for the time being.
If you definitely need an office, however, you need to make sure you’re smart about what sort of office you select. Even in thriving business cities, there are office options out there, such as serviced offices, that allow small businesses (or even big businesses) to save a lot of money.
Still, you must remember that getting an office is only something you should do if it will genuinely benefit your business and if you can comfortably afford to do so.
Get open source software
A lot of money goes into licensing business software. Many business owners make the mistake of assuming that all of their employees need a Microsoft Office license when everyone could have worked with open source software instead. Free alternatives to Microsoft Office can be found online.
OpenOffice, for example, is an open source software suite that can be used for free, providing you with word processing software as well as spreadsheet, database, and presentation options.
There are also web-based solutions such as Google Drive which rely on the cloud; these can be great for collaboration and multi-user document editing.
There are, of course, several pros and cons to outsourcing. But one of the pros, if you’re smart in how you go about it, is that you can save a lot of money. Instead of hiring full-time employees for given tasks, you can go to an outsourcing agency to get the task done at a much cheaper rate.
The costs of recruitment are high, and that’s true even if you take that employee’s salary out of the equation. While, in many ways, it’s ideal to have an in-house employee for a given task, it’s not often necessary.
Things like IT support and web development, for example, can be done expertly at a fraction of the cost of recruitment.