It is very much possible to start a company on a shoe-string budget of around $500 or $1000 and expand it into a multi-million dollar enterprise. The world is filled with people who started young with meager investments and ended up establishing empires. They didn’t let lack of funding stop them from reaching new levels.
We have Fred DeLuca (Subway) who started with $1000 and turned it out into a successful venture, Anita Roddick (The Body Shop) who began with $6,800 and also we have Steve Jobs whose success story has inspired millions globally. Start a business that will generate quick early revenue and also not require expensive infrastructure or space.
Here are some useful tips that will definitely help you set up your business on a shoe-string budget.
- Home based
You don’t have to buy an expensive office space to start your new business. If you are dealing with tech improvisations and research, your home or garage could be the best place to start. A small space is sufficient to begin with any new business.
- Choice of business
Choose a business which doesn’t require investments in inventories. Avoid warehousing. There is little scope for trial and error if you are starting on a shoe-string budget, so be cautious about how you spend your money. If you are setting up your business on the internet, web hosting, domain registration and service provider rent will anyways cost you very less. In addition to this, with free availability of design templates and software (Joomla) for downloading, you don’t even need a web designer.
- Money management
Avoid extra expenditures. Maintain a budget. Don’t spend a lot of money on your own interests and lifestyle. Learn to save money for your business. Reserve cash might come in handy during bad times. If a time comes, that you need to buy an office, go for a small one. Do not spend lavishly on high end office spaces. Buy second hand furniture at reasonable cost to set up your office interiors. Instead of buying your own scanner and photocopier, you can always choose to visit the neighboring store. A second hand computer/notebook can also help save a lot of capital.
Instead of hiring more staff members and paying them, learn to multitask and work on multiple projects simultaneously. Sales, marketing, public relations, shipping, try taking care of everything. Become a one man army. If you are not well versed with a specific skill, outsource it from an independent source.
- Face of your business
Customers should have a very good perception of your business. Build a very strong, professional and mature impression of yourself in their minds no matter how inexperienced or young you maybe in real life. The face of your business must appeal uniquely to the customers/clients. It must win their confidence. Honor commitments from time to time. Make those deliveries on time. Provide services on time. Take responsibility for any error on your part.