HOW TO START A NEW BUSINESS ON A BUDGET
Starting a business is an exciting prospect.
Having a limited budget to get started with can be challenging.
The good news is that some of the world’s most innovative products and services have been created on a shoestring.
While this can be an inspiring place to make your start, a great business needs more than just inspiration to get off the ground.
Working out what your budget is and how to best keep control of it will be vital to the success of your business, no matter how great your idea or enthusiastic you are.
The financial side of starting and maintaining a small business can be daunting. Even the language used can be confusing!
My purpose as a Financial Performance Coach is help simplify finance for non-finance business owners and entrepreneurs.
If you’re starting out with a big business dream and a small budget, here are 5 basic but fundamental considerations to set you on your way.
1. Have between 6-12 months of savings
Depending on how comfortable you feel with risk, ensuring you have at least 6-12 months’ worth of money saved in the bank to get your idea started will provide and excellent foundation.
2. Carefully itemise set-up costs and outgoings
One of the key advantages of starting a business on a tight budget is that you are actually more mindful of money. Begin by carefully setting out your start-up costs and operating expenditure. Start-up costs comprises of costs incurred to set up your business before you generate income. Operating expenditure consists of ongoing costs required to run your business.
3. Identify tasks that you can do and those that can be done for free (utilise your networks, friends and families).
When paying for goods and services, get at least 3 quotes, assess pros and cons of each provider, and pick the one that most closely meet your needs and at a reasonable price. Do not make hasty decisions. Every penny you spend is precious – make your $s last. Also be honest with yourself about tasks you simply should outsource.
4. Do your research
There are numerous grants that you can access as a small business owner to help with launching or expanding your business. Look for small business grants, advisory and support provided by government, local area council or start-up hubs.
5. Be realistic
I have decades of experience helping people make sensible and informed business decisions. Need help with the financial considerations involved in bringing your business idea to life? Reach out to me for a chat: [email protected]