Starting a business on a budget is often seen as a cheap way to make money. However, you don’t have to feel bad for wanting to save money, especially in the current economy; you need to do everything possible to make the most of the tools available to make the most of your options right from the start.
A lot of first-time business owners are intimidated by the sheer amount of work that seems to be involved. It takes guts to go out on your own because it involves leaving behind a job and investing money into the unknown.
The following tips should help you get started on a budget.
Get financial advice
Before you invest money into any venture you should speak with a financial adviser about your options. Absolute honesty about your finances will come in handy here because the professional adviser can not help you if you hide some of your spending because you fee embarrassed.
Try and deal with a professional who is familiar with the various business structures in your country. Will you be trading as a sole trader, as a company, or as a trust fund? Depending where you live, this will heavily affect your tax rate. In some countries you can see a financial adviser free of charge to help you get started in business.
Where will you do business?
Are you planning to run your business online, or in an actual brick and mortar location? There is no doubt that running an online venture is often way cheaper than having to pay for a lease, staff and inventory before you even open your premise doors.
Based on the type of business you are planning to start, you can save yourself a lot of money by going virtual.
Make money by saving money
The best way to make money fast in business is to save it. Consider employing a virtual assistant to help you run your business. Many VA’s work on a contractor basis which means you employ them when you need them.
This can result in healthy savings for any young business looking to preserve funds right from the start.
Use free online tools
If your business requires a website you can get online for a relative low fee without to part with the better half of a small fortune. You can create, host and manage a website for as little as $20. This includes a domain name, a host and WordPress which is a free CMS web software that can be utilized to build a nice website.
If you are paying for these services then you can expect to pay anywhere between $500-$2000+, depending whether you need an online store or not.
Other free tools that come in handy are:
- Online editors
- Image converters
- Word to PDF
- Mindmapping tools
- Social networking platforms
- Online collaboration tools (if you employ a VA)
- Online file hosting
- and many more
Get a toll-free number and virtual business address
In business appearance is often everything. Having a toll-free number and physical business address in a city is as easy as ordering it online from a virtual office provider. This is a very cost-effective way to open shop with a business location that will receive, sort and process your mail while giving you the freedom of doing business online.
Take a look at Servcorp (Australian customers), or Your Office (US customers) to see what type of services they offer.
Spreading your business word
Unless you tell other people that you are open for business it will be hard to find new customers. Thankfully this is easier and cheaper than ever because of social media sites such as Twitter and Facebook.
If you spend some time to learn how you can market your business online to make money, you will be able to build your business on the cheap without having to miss out on the opportunity itself.
This guest post is contributed by Timothy who is a regular blogger and personal finance writer. He writes for a network of personal finance websites which specialize in credit card comparisons and information to help consumers save and get in control of their finances.