Not Much Capital? No Worries! You Can Still Get a Business Going

How much capital do you need, to get your startup launched successfully? There is actually no one answer to this question since it depends largely on the nature of your business. Some businesses, such as restaurants or brick-and-mortar retail stores typically require a significant amount of cash to start. While there are certainly ways to reduce startup costs for such businesses, it’s probably not ideal to try to wade into them if you have extremely limited funds. This should not dissuade you from the idea of starting a business, however. It may simply require you to reevaluate your ideas about the kind of business you’re going to afford. 

Work From Home Jobs shares the following guidance for new entrepreneurs who don’t have a lot of startup capital.

How to keep startup costs low.

Try not to run through your capital or dig yourself into debt before you’ve even gone live!

• Even if your dream is to own a brick-and-mortar business, see if you can start small out of your home, to keep overhead costs to the bare minimum.
• You can access additional tax deductions if you register your company as an LLC. Save money on the formation process by using an online service.
• Resist the impulse to buy a lot of fun supplies or inventory that you don’t need.

How to raise funds for your business.

Before you start fundraising, you should write up a detailed business plan, so when you apply for a loan or grant, or talk to an investor, you can show your blueprint for how your company will succeed.

• Look for federal or state government grants or loans you might qualify for.
• Look to the private sector for loans. Banks and finance companies may be able to set you up with the funds you need – but do be sure to read the fine print, and don’t sign onto anything with a high interest rate.
• “Angel investors” will often fund startups they believe to be promising or important, in exchange for equity ownership. Once again, this is why having a great business plan is important.
• Try crowdfunding your own venture. Especially if your business is going to offer a valuable service to your community, including your online community, you may be able to find plenty of people who will enthusiastically contribute to help you get your start.

How to run a business on a tight budget.

If you don’t have a lot of extra padding, it’s incredibly important to minimize costs and maximize profitability, at every step of the way.

• Your budget should account for all ongoing and one-time expenses. It should also operate on the principle that unforeseen expenses will come along, and cash flow will sometimes slow down.
• There are many affordable software options that can help you increase productivity and accuracy in management at almost no cost.
• If you can’t afford to add more full-time team members to your company, freelance contract workers can take care of a variety of tasks, from social media marketing to web design. 
• You can also take on some tasks yourself through the use of free or affordable online tools. For example, forgo a graphic designer and create your own business logo through a free logo maker that enables you to build an attractive and customized logo.
• Use free social media platforms to market your business, reach new customers, and establish a web presence.

Remember, even if you are starting small, this is just the beginning. Get off to a good start with low expenses and a healthy cash flow, and your business will be growing in no time. This will position you to secure the funds you need to take your company to the next step. 

Guest post by: http://economymom.com/​

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