Are you thinking of starting your own business but the capital costs frighten you? Well, you should be. Poor finance planning in business often lead to the collapse of the business. However, this should not petrify you because I am going to give you some tips on how to build your startup business on a budget.
1. REDUCE MARKETING COSTS
Creating different social media accounts in the internet will help you as an entrepreneur to market and brand your business. You should remember that the internet is your friend. At the start of the business, don’t think about spending a lot of money to buy an expensive domain but go for free social media platforms such as YouTube, Twitter and Facebook and you will still reach your market.
2. CUT ON TRANSPORT COSTS
In case your business involves the transportation of merchandise from one point to another, then reduce or if possible try to remove any costs that you might incur transporting the goods. You can for instance tell the customer to buy three and get one free or buy four and get free shipping. This will in turn cover your transportation fee and perhaps earn you more profit in the long run. Here is a way to cut your transportation costs.
3. REDUCE OR REMOVE HUMAN RESOURCES
When starting a business, it is a better option to do sole proprietorship. This helps you understand your business strengths and weakness and correct them at that early stage. By doing this, you will reduce or remove the labor costs that would have been incurred if you hired any help. You can also ask your friends and relatives to help you out at the start of the business. Nevertheless, a partnership can similarly help reduce startup costs since all members of the partnership are contributing towards the business.
4. REDUCE OR REMOVE STORAGE COSTS
Before deciding on the type of storage you want for your merchandise, consider the type of storage you need. Are your goods fragile? If so, get them to a storage space where their integrity will not be interfered with. You do not want to spend a lot of money replacing broken goods. Additionally, you can start the business in your own home if renting a room seems more than you can afford.
Remember, reducing your expenditure at the start of the business is imperical to the success of the business. You should be able to identify all the key aspects of your business and avoid spending on those which are not so important within the first business year.