how long have you been itching to start a small business? What is holding you back? This is why many people put off starting a small business because they think they need a healthy capital injection to do so. This is simply not true. So how do you start a small business? Simon Payne, co-founder and CEO of Pop-up Business School, said:
“You can easily start a business with no money. When you start, good enough, good enough. It doesn't have to be perfect. Perfection will kill your business before you start because it costs money and you don't have to spend money to go."
Bootloader is a great way to build a business. According to Pain,
“The downloadable business is the most likely to survive. Why? Because you've built your entrepreneurial muscle by figuring out how to start for free and you're in your own business. This process is critical, so don't skip it."
So once you've sorted out everything you need to get started—permits, licenses, registering a business name, opening business accounts, creating a website, business cards, etc. bootstrap, you can outsource everything else. Here are my eight top tips for starting a self-financing small business.
1. Let's start with you
If you are interested, what would be a good small business to start? You might want to take a closer look at what you have to offer.
- What are your skills?
- What are you the most experienced?
- What knowledge or insight could you share that someone would pay good money?
- Who needs your help?
There is no right or wrong small business, as there is no guarantee that some will be more successful than others. I've seen startups with incredible products not because they don't know how to market themselves. perspectives and deliver a one-of-a-kind experience. Dmitry Okunyev, founder of Chanta, said:
“The best way to start a small business on a small budget is to start with a problem that someone else has to solve it, rather than inventing something new. This way you already have your target audience right in front of you and you can make your first sale right away instead of wasting money on marketing.”
So, grab a pen and paper and write down your skills, your experience, what you really like, and who your ideal client is. Use this as a starting point for figuring out what kind of business you want to be.
2. Now talk to your potential customers
Marie, farmer, founder of the mini-meal, said:
“Talk talk talk to your potential customers. Don't spend a dime before doing this."
Conversations lead to conversions. They will allow you to get inside the heads of your potential customers to discover what they are struggling with and develop solutions tailored to their needs. So often, as business owners, we think we know our target market. We think we know what they want, where they consume the media to drive them to buy your product or service, and we couldn't be more wrong. I've met many entrepreneurs and small business owners who have spent thousands of dollars on their company, only to realize, six months down the line, that it's all wrong. The name of the business, their offerings, prices—everything that money and time is wasted simply because they don't do their homework. By interacting with people, you build relationships and you will get valuable feedback. Listen to what they say and how they say it, they are the gift wrapping of your content strategy. You already know what they have googled, so you can create a video or article that speaks directly to them. This on-site market research will also show you:
- Who do you like the thing.
- Where are they based.
- What is their daily routine like.
- What are their sore points.
- If they have an appetite for what you are selling.
- What are they willing to pay for it.
Then you need to find out:
- Who are your competitors.
- What are they doing that you can do better.
- How are you going to differentiate yourself.
Experience is your unique differentiator. Do it right and not only win your first client, but you've given them an experience that will keep them coming back for a lifetime.
3. Leverage Relations
Networking is a lifesaver for small business owners. A home, a circle of people who have experience in starting and growing a company, is essential to your success. They may be three or four steps ahead of you, but they are people you can get to know and discuss ideas with. They have been where you are and they know what it takes to start a small business. Their experiences are not all the same, but that's a good thing. Richard Michie, Chief Marketing Officer of Optimist, shared his startup story:
“When I started, I stayed at home and tried to learn how to run a business. It didn't work, so I joined Entrepreneurial Spark and then Natwest Business Accelerator. Here, I have been able to share my triumphs and disasters with others who are facing the same struggle. Through sharing and listening, I have become more resilient to the ups and downs of running a startup. Plus, I was able to build an even bigger network of valuable connections that helped grow the business en masse.”
The benefits of using your entrepreneurial network include:
- Finding new leads to follow.
- Reengineering your thinking.
- Build your confidence and ease your fears.
- Easy access to free advice and support.
- Help with goal setting and hold yourself accountable.
Take a moment to scroll through your phone contacts and electronic database. Pay attention to who you can reach them. These people can be used to develop the network and find new business opportunities.
4. Make a list of everything you need to go
Now that you know what you're good at, who you want to work with, what their pain points are, and what you're going to sell, you should make a list. This is a checklist of what you need to do to start your small business. Yes, you can google it. Or, and it's better, you can turn to the business network for advice on what to include and who to contact to help you get things done. I'm talking about lawyers, accountants, creatives, you name it. They will eat these people in speed dial and you will know that they come highly recommended. After you have completed your list, Simon Payne says,
“Go through your list of what you need to start your business and see what you can get for free, borrow, barter, sell something to get cash, or sell your value before you set it up. You can absolutely start a business without money by following these principles.”
5. Be ruthless with your spend
Whether you're starting your small business as a part-time job, or you're investing your savings in running it, you need to be very careful about what you spend your money on.
Keep Her Skinny
Santiago Navarro, CEO and co-founder of Garzón Wines, advises keeping it lean in the early stages of launching your startup.
"Spend as little hard work as possible and focus on the main goal of developing quality MVP (Minimum Viable Product) to take to market for testing or sale."
Won't get paid
Danny Scott, CEO & Co-Founder coincorn is, offers not to accept a salary.
"For the first six months of our business, the founders took no paychecks to help give the business a great opportunity to get off the ground and gain momentum."
If you don't have to pull a paycheck, don't.
Work from home
You don't need a fancy office. Duncan Collins, founder of RunaGood.com says,
“Work from home. No business rates to pay for both rent and maintenance fees.
Plus, you can write off a percentage of your expenses when tax season rolls around.
Barter Your Services
Do you have any skills, extra time, products or services you could switch? Perhaps you are a copywriter and you need a designer to create a logo and business card. Barter your skills to help them. You could offer to check out their content or recommend their services to any clients you get. You may be opening a coffee shop and need help with licensing. You could redeem an unlimited free cappuccino for your assistance in acquiring and processing the case. Bartering is a great way to achieve a lot without spending a dime. How can you cut costs? Who can barter services? Go back to your list and add this information to it.
6. Consider how you want to position yourself
Don't be afraid to go after the premium client. In business, profit comes from how you market yourself and positioning determines how much you earn. This allows you to attract more quality customers. I'll give you an example: If you're a professional musician and you position yourself as a subway busker, your "customers" will treat you as such and pay you accordingly. You will work long and hard to earn a small amount of money. Conversely, if you position yourself as a professional live performer, you will attract very different clients and pay accordingly. Position yourself as a commodity and you will always compete on price.
7. Strategically Focus Your Energy
While business owners wear a lot of hats, at some point, you need to be realistic about where you should invest your time and energy. In the early days of starting a company, it's okay to do everything on your own, work crazy hours, and never get out, but it's bad for you or your business. A small business study found 78% of small business owners report burnout during the first two years of their company. work, you are not going to make any money. That's why I always tell my clients to master one thing before moving on to the next. It could be one niche, one social media platform, or the first three modules of an online course, whatever. But when you try to do too much, nothing gets done. Just ask Dani Mancini, founder and owner of Scribly.io:
“As long as I haven't let down how much I've tried to do, what I've figured out, I'm setting myself up for failure. Instead of trying to do everything at once, I now focus on one thing at a time and commit to doing it well. This means making tough decisions like stopping our content strategy completely until I nailed down other priority activities like scouting and referrals (which was clearly a more effective tactic).”
Knowing where to focus your energy is so important. Ask yourself What is critical to my success? What do I need to do now to ensure growth over the next six months? Once you've got it - and then move on to the next project.
8. Outsource everything you shouldn't be doing
This brings me to my last point, outsourcing everything you have limited knowledge or no use of your time. Melissa Sinclair, Founder of Great Hair Beauty, said:
"Sometimes you may feel like your business can't afford it and you'll just do everything yourself, but most of the time you can't afford not."
If you don't know about accounting, entrust this business. If you don't know anything about web development, contextual advertising, Facebook advertising, SEO, sem, co, or creating your standard operating procedures, outsource this job to someone who does. There are many freelance sites where you can find talented professionals who are willing to accept a fixed price for a certain result. Here is a guide to help you delegate effectively: How to Delegate Tasks Effectively (Step by Step Guide)
Bottom Line
Some of the most successful small businesses started out as home-based businesses, from cafes and even college dorms. They started with a product or service that was good enough. They spent $100 on a website template, domain name, and form selection. They regularly engage with their marketplace to identify where improvements can be made, what works and what needs to be done. They set goals, provide a service, lived lean, borrowed equipment, sold services, outsourced where appropriate, and reinvested some of the profits in their companies—this is how you build a small business with little or no money.
More About Entrepreneurship
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