Starting a business takes a lot of money, right? It’s no secret that some businesses takes five or six figures worth of funding but some businesses, which can be just as successful as those high cost startups can come to life with less than $1,000 in startup funds.
First, don’t get caught up in the look. Just because your business doesn’t look like a business doesn’t mean it isn’t one. You don’t need fancy office furniture, a $10,000 website, or even an office. A computer with an internet connection is enough to get some businesses off the ground.
Use Relationship Marketing
Let’s say that you just got your massage therapist license and you want to start a business. You could pay for ads, signs, and radio spots or you could use relationship marketing. Talk to your local Facebook friends, go to local (non-competing) business and offer all of these people a commission for each person they send to you. The marketing only costs you money if you gain a client. What marketer wouldn’t love to have a 100% return on their marketing dollars?
Good is Good Enough
Have you ever heard that perfectionists are sometimes the least successful entrepreneurs? Why? Because everything has to be perfect. They would rather save money for the custom website, professionally designed business cards and the marketing professionals before starting the business. As a result, the business never gets off the ground. Good is good enough at the beginning. Use the website template, modify a pre-existing business card. It needs to look good but you don’t need to hire Apple’s marketing team. There will be time for that later.
Hire Contractors, not Employees
At the beginning, hire independent contractors to help with the business. That saves complicated IRS paperwork, workers compensation insurance and other items that will take too much of your time.
Don’t Skimp on the Legalities
The key to saving money at the beginning is to do anything you can by yourself providing it won’t take too much time away from other important tasks. One area that you can’t skimp on is the legal issues. Especially if you are starting a business that has the potential for a lawsuit should something go wrong, make sure that you are incorporated or have some other business registration that separates you from your business legally. You don’t want your family’s finances wiped out if you’re sued
Remember, start slow and purchase items after you are making money. Some entrepreneurs believe that there are certain things they must have before opening the business. What you must have is a solid plan and a top-notch product. All of the other items will fall in to place.