Are you among the millions of people who dream of starting their own business
but do not think they have enough capital to get started? Well, think again.
You do not require large amounts of money or the backing of a wealthy family
member to launch a successful business- financial savvy and resourcefulness can
make for a world of difference.
Therefore, whether you want to launch a consulting firm right out of your home or
start an internet company, having a well defined budget plan will greatly benefit your new
business in its early stages. Do not let a small budget derail your dreams of
business ownership as with some financial savvy, you can start a business for
less than you imagined. Below, we take a look at 4 tips on stretching your
small budget in order to launch your new business as follows:
1. Work from your house.
Undoubtedly, one of the biggest expenses for any new business owner is leasing
space to conduct their activities. However, you can save on a lot of money at the start
by not investing upfront in this long-term overhead cost. For instance, if your
business depends mostly on the Internet, it would be much easier to work from
home where you can conduct both your business online and have virtual meetings
to check in with or collaborate with customers and employees.
This is a down-to-earth, practical approach to starting a new business for anyone
who does not have enough financial resources to invest in a start-up.
Additionally, one stands to gain a lot of ground and reach their break-even
point much faster since you will not be burdened with the high start-up
responsibilities and costs of leasing space.
Even if your new enterprise is not an Internet start-up, it is still advisable for
one to consider working from home. You can have an office in a separate area of
your home to keep your work life separate from your home life. A separate space
also ensures that your business will appear more professional whenever you have
2. Establish a sole proprietorship.
Another cost-cutting measure when launching a new business is to start off as a sole
proprietor. This is because apart from being free to form, it is the only
no-cost operating structure that can be used to form a company. In addition,
such a structure denotes that the individual is responsible for the business
debts, but the business is not a legal entity that is separate from the owner.
However, as the business grows to levels that warrant it to be a separate entity, it is
advisable to incorporate it. This is because should the business eventually accrue
debt, you would be protected from the debt since the corporation would be
considered separate from you under the law. A corporation would also come with
certain tax benefits and would be able to eventually become a public company.
That said, corporations unlike sole proprietorships are expensive to set up and
require periodic filing of returns with the state.
3. Have your own equipment.
While the products that you need to start your new business may already be at your
disposal, if you were to convert them from personal assets to business assets,
they would become tax deductible under the law. This applies to everything from
your computer and cell phone and anything else that is regularly used in the
conduct of your new business. If you are unsure of what applies to your situation,
it would be a good idea to either liaise with tax professionals or read on tax
deductions applicable to small businesses.
4. Source products from a wholesaler.
When purchasing products for your business, consider vendors who are open to
helping new start ups gain a footing in business and who can also help you develop a
budget plan. To find such vendors, you can go directly to a distributor or
wholesaler for inquiries or visit trade sho
But whatever you settle on, conduct adequate research before jumping in. For
instance, you can request the phone numbers and names of the sales
representatives’ recent clients and call them for reference before making your
purchase. It is not just your capital that you seek to protect but you would
also be laying a firm foundation for rapid success.