Business
start up
Start up Your Small Business
with a Small Budget
Small
business start-ups often ask me how they can launch their business on a
small budget. Having started up four successful businesses myself,
and having coached hundreds of small business owners, here is what
I’ve learned.
You
can’t start up a business, even home based, with no money unless you
want to stagnate at the starting gate for some time. If you’re
not willing to invest in your dream, why would others want to support
your business or invest in your products? But if you know you have the
courage, determination and motivation to go for it, here are some tips
that will help you start a business on a very moderate budget.
How
much do I need to get started?
First
of all, make a commitment to set up your business the right way. Once you’ve
chosen a well-researched, profitable niche that you’re passionate
about, the tips below will help you understand the start-up process.
They’re meant for micro, solo and home based business owners and
independent service professionals. Those opening a retail store or
leasing office space will experience much higher start up costs.
-
Find
quality, low cost options for your initial marketing materials. At
a minimum, you’ll need a logo, business cards and a website--even
if you’re planning just on online business.
With the right knowledge and resources, you can get all of
this accomplished for under $2,000. Be cautious however, because you
need to learn how to create a polished branding package and website
that will generate lots of leads and sales. Too many start ups pay
for a boring website that gets little or no traffic, or marketing
materials that they outgrow too quickly. It’s important to avoid
these costly mistakes.
Ø
Figuring out the most direct way to reach your
target clients. Example: say you want to reach new homeowners;
putting an ad in the local paper is way too general. Don’t
spend on marketing that reaches too broad an audience.
Ø
Figuring out the most cost effective ways to reach them.
Marketing online is still the best deal around. But there are many
highly effective cost free and low cost offline marketing ideas that
really work.
Ø
Maximizing every marketing dollar and having a strategy
that compels people to take action. People rarely buy until they
trust you, so your marketing goal should be to generate qualified
leads. Then you can convert them into paying clients. Master this
and your business will really grow.
Your
initial marketing budget could conceivably be under $1,000. If you use
it wisely, measure and track your results, change or eliminate
ineffective marketing, and keep putting a percentage of sales back into
your marketing, it’ll finance itself.
-
Technology
– you’ll need to purchase some software and online services,
like web hosting, a data base program, accounting software, an auto
responder and perhaps other industry specific software. Shop around
--lots of software can be purchased for less on E-bay. Buying a
slightly older version is fine to get you started.
Where
can I get the money to fund my start up?
Check
out this subject on my blog (http://smartrack.net/blog). Most funding
options involve an element of risk, but taking calculated risks is part
of business ownership. Here are some ideas:
-
Home
equity loan
-
Personal
savings
-
Low
interest credit cards
-
Loans
from family and friends (protect the relationship by signing a
contract)
-
Credit
union or personal bank loans or lines of credit
-
SBA
loans –these are usually for larger amounts
-
Venture
and private investor funding (you better have a top notch business
plan)
-
Prosper.com
–a perfect choice for micro loans. (www.prosper.com)
These
tips should give you some insight into the basic small business start up
process.
Stop
struggling. Get the business you've dreamed of launched in just 12
weeks. Save you
time, money and struggle and get to profit, Rev-Up
Tactics.
Download
a free e-book, How to Start and Build a Profitable Business in One
Year or Less. and access an informative audio.
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