Have you always wanted to try running your own business but have been put off by the amount of money you need to start? There are several things you can do to minimise start-up costs which can make running your own business possible. They won’t all work in all situations, but they each have the potential of saving you money in the early days of your business.
Minimising Business Start-Up Costs
Tip 1: Choose a business with minimal start-up costs
If you don’t have a firm idea of the type of business you want to launch, you should consider doing something that has minimal start-up costs. This could be something that utilises skills you already have – graphic design, for example, or providing IT support. You can also try something where you already have all or most of the equipment at home. Examples include gardening or cleaning services.
Tip 2: Choose something you can do yourself
This is to avoid hiring employees for as long as possible. Some examples are above but you can also try tutoring, handyman services, virtual assistant services, and more – anything where you deliver the service rather than employing others. Once you establish the business you can considering hiring to expand.
Tip 3: Work from home
Renting an office or workshop shop is a considerable expense for a start-up, but you can cut this cost completely if you work from home.
Tip 4: Get (free) help from friends and family
Utilise the people you know to help get you started. This could be someone who can build a website for you, help you prepare a business plan, or get you started with marketing.
Tip 5: Pay for nothing unless it is absolutely necessary
Don’t buy anything until you need it. For example, a shiny new iMac might look good on your desk, but if you can get away with using the five-year-old PC you already have, don’t buy it until you really need it.
Tip 6: When you do have to pay for something, get it cheap
Buy second-hand or refurbished when you can, and considering subscription services, like subscription software, rather than buying outright.
Tip 7: Put in place the right payment terms from day one
One of the biggest challenges you will face in the early days of your business is cash flow. You can help alleviate this by having tight payment terms in place from the start.
Tip 8: Design a brand and launch a website
This will help make your business look professional and can help you get customers. If you can’t design the brand yourself and you don’t know anyone who can do it for you for free or cheaply, you can try harnessing the gig economy. There are freelancers on Fiverr, for example, who will create a logo for your business very cheaply. As for your website, you can use a service like Wix to design it yourself.
Tip 9: Implement a no-cost marketing strategy
Use social media, send press releases to your local newspaper, attend local business events, join in with discussion groups online, start building an email list to begin email marketing – these are all examples of low-cost marketing strategies.
Tip 10: Use freelancers
If you need something done but don’t have the right skills, considering using a freelancer instead of employing someone.
Tip 11: Don’t quit the day job
If possible, continue working in your full-time job for as long as possible. This will give you a steady income while you establish your business.
For more help with launching your business, or any other advice, please contact a member of the Gilroy Gannon team today.