If you feel that you have an entrepreneurial spirit but you’re lacking in the funds to start up a new business, you should check out this guide to find out how to start a business with low start up costs. We have some great tips for you to help you get making money fast.
Work From Home
The best way to keep your start up costs down is to use your residence as your office. This won’t be suitable for all new businesses, but there are many businesses that could be run from a room in your home. Whether you’re planning to make handmade keepsakes to sell, offering accounting services or designing websites, you could do all these things from the comfort of your sofa. The only additional costs you will have to pay on top of your current household bills are those surrounding running a business from your home. You will still need to consider business insurance for example.
Use Your Existing Equipment
Rather than purchasing a new computer, car and other items that you may need for starting a new business, you could just use the ones you already have. You could even use your personal vehicle to advertise your new business. Look for a local company offering vehicle design modifications to have your logo put on the body of your vehicle. This cuts some advertising costs too as your vehicle will become a great means of advertisement.
Look For Local People With The Skills You Need
There are often people around who are more than happy to help out with particularly good business ideas but they may want a share of the profits they may be happy to work for free. You could contact a college and run a competition to design the best logo. Your only cost for this would be that of a competition prize, which would still be less money than having a professional design your graphics. You could ask a budding web designer to build your website for a low cost. In return, they would be able to build their own portfolio and you could even offer a space for them to advertise their own services on your website.
Buy In Bulk
Maybe it goes without saying, but if you are starting up a business and will need multiple numbers of the same items, you should always try to buy in bulk. This will make you some large savings in many situations. It is even more important to make these savings if you are planning on selling on the items that you purchase. You could purchase drinks by the case full for example and then sell them individually for a profit. The cheaper that you can buy the items for the higher your profits will be.
Don’t Have A Warehouse
Many people who sell items, such as office supplies, find that they can cut out significant costs by ordering directly from the supplier and having the supplier ship straight to the customer. This will ensure that you don’t need to store stock and therefore you cut out all overheads associated with keeping a warehouse. You won’t need to buy anything before it’s needed and you won’t need to pay for the rent or upkeep of a warehouse or the staffing costs of running one. If buying in bulk may not work for your chosen business, you could avoid storage costs by choosing this method instead.
Plan Your Business Well
The key to keeping your costs down is to stick to a good business plan. A business plan will help you to stay on the right track and to meet your milestone targets. You should work out carefully just how much stock you’re likely to sell and then only purchase around that many of the same items. Although bulk buying is a good idea to save money, make sure that you don’t stock pile too much in the early days as you may struggle to sell everything and you’ll be left in negative equity. You should also try to do the same with staff. If you are employing people to help you run your business, it is important that you only employ the people that you need for the time that you need them for so that you can keep your staffing overheads down. Try to employ staff who have a range of skills too so that you can have one member of staff to do several jobs for you.
Image Credits: Mackenzie Kosut