You have done some research test marketing and have a good idea that your good idea is worth taking to the next level, but you still have little or no financial wherewithal to do so, no problem. No need to walk away from your project. Instead, start building your business on nearly nothing by expanding the possibilities. Let us take a look at the many ways you can build your business with a limited budget.
Self-financing
While you have been starting your business with little or nothing, you have been selling your product and service and saving your profits to reinvest into your business expansion. This is one of the ways you can capitalize your business venture. Make sure that you are smart about how you invest your profits because it makes a difference.
Make a Plan
Chart out a six-month course. Be honest with yourself. Know what you want your goals to be, how much revenue you will need to make it through the six months, how much income you will have, and how much you have saved up from past profits. Allow a certain percentage for miscalculations and prepare for contingencies that were unaccounted for (because you never really know what to expect until you are in the midst of the game).
Top 10 Ways to Build Your Business with Little or No Money
1. Watch Your Expenses
You can maximize your limited budget by playing it smart. Outsource to your heart’s content. Instead of hiring someone to perform a task for your business, find someone who offers that service to business on an a la carte basis. Just pay for what you need piecemeal, no need to hire someone full-time.
Apply this principle to everything you can.
In the beginning, lease, do not buy. This goes for everything from real estate to business furnishings. In this way, you can have more available cash in these critical first stages, when your survivability is of primary importance.
In-house Funding Sources
2. Offer Memberships
You can offer memberships, where your customers pay a fee for members-only discounts or premium services.
3. Offer Packages
Package purchased can raise revenue that you can use today against goods or services at a later date, like by 12 for the price of 10 by paying in advance and get 2 free.
4. Host a Sale
Have a sale. You can run a limited-time discount on goods or services and promote the heck out of it to your existing customers and invite people who may not have even heard of you, yet, to take advantage of the special offers.
5. Expand Your Services
Expanding your services is another excellent way to raise revenue. Give your existing customers more reasons to support you financially by giving them more ways to do so.
Outside Funding Sources
Even with the best plans, the day may come when you will need more cash than you are able to raise through making sales and watching your expenses. Don’t be shy about seeking out investors. Besides, you are not just monkeying around, your operation may be the next big thing! What an opportunity.
So, go ahead, approach your
6. Friends and Family
They can be investors and get a piece of the action, or you can just borrow money and agree to pay them back with interest, whichever way seems best to your supporters. Make sure you have it in writing, so there is no confusion later.
7. Finance Your Business Expansion with Crowdfunding
50 Billion dollars of funding is solid proof that crowdfunding works for raising the cash that has helped to launch or rescue business owners and entrepreneurs of all kinds. So, check out popular crowdfunding platforms, like Kickstarter, Indiegogo, GoFundMe, and Patreon, and find one that you think will work out best for you and your project. Don’t just put up a campaign willy-nilly. Research each platform and look for projects, like yours, that are received well by their audience, because each has its own following. This will maximize your fundraising efforts, and the best part is, crowdfunding money need never be repaid. It is a gift.
8. Get a Business Loan
You have built your business, and banks do offer loans to businesses. Generally, if you are thinking about taking out a small business loan, you should think about going to the ban that hosts your business account first. Online business loan brokerages are often more lenient but beware of the high-interest rates.
Also, see if you can get a business line of credit (LOC). This works like a credit card for your business expenses, and you only pay for the credit that you use.
9. Business Grants
Granted, business grants are harder to uncover and qualify for, but many clever entrepreneurs are keen at sniffing them out and landing them, which is an excellent skill set if you are so inclined. If not, you might seek the services of an experienced grant writer to do the heavy lifting for you. The best thing about grants is that they are gifts without any need to repay.
10. Angel Investors
Angel investors are wealthy individuals who invest venture capital in your business. The amounts offered are varied and do normally come with attachments. They may want repayment at high interest or a piece of the action. They want to be involved in the day-to-day operations or important management decisions. So, you are well-advised to check them out, look before you leap, and know what you are getting into before signing on the dotted line.
You can find angel investors online at AngelList, SeedInvest, and/or FundersClub.
