Having been the proud owner of a restaurant business that I built from scratch, I know that you can spend a lot of money bringing your entrepreneurial dream to life. At the same time, there are plenty of opportunities for entrepreneurs to launch their business ideas without breaking the bank, and that’s exactly what I’ve done with my second venture, Cerise Noire Software. In this guest post, John Williams, owner of Logo Garden, provides strategies for entrepreneurs to get creative when it comes to funding their businesses. John has been helping startups with constructing a business image for over 15 years and has published extensively on the subject of branding and the importance of a well-designed logo. In addition to his 25 years in advertising, John is an avid golfer and fisherman and enjoys both those activities with his teenage son.
Think you need tons of cash to start a new business? Think again. Case in point: Mark Zuckerberg. The billionaire founder of Facebook conceived the idea for his company in his college dorm room. Not only did he not have a lot of capital investment in the beginning, but he also had virtually no money. But what he did have was a good idea.
If you have a business idea with promise, but you don't have the cash to make it a reality, you should start thinking outside the box. Sure, those embarking on many traditional business opportunities may face a great deal of upfront costs (e.g., Monique’s case with her restaurant venture). However, with a little creativity and a lot of passion, you just might be able to turn your vision into a reality without spending a lot of money on the front end. These tips may help you get started without having to dig up a lot of cash at first.
Don't Quit Your Day Job
If you're fortunate enough to have gainful employment in these tough economic times, don't recklessly give up your job to chase your dream. Instead, if at all possible, retain your current employment and work on your startup at night and on the weekends. Typically, new businesses don't have immediate success after launching. Instead, particularly with unusual, risky or really innovative ideas, it may take some time for them to catch on. Easing into the new venture and funding it with your existing salary will help avoid a premature demise. Many people who have embraced this gradual process have been grateful for that decision, particularly when things don’t work out with the new business. Every idea won't succeed, and if your venture becomes a casualty, you'll be thankful that you didn't give up your current job.
Forgo the Fancy Stuff
Just because you have a new business doesn't mean that you have to rent extravagant office space. Instead, for as long as you can, work from home. Forgoing commercial office space will free up much needed cash that can be spent elsewhere. And, by working from home, you'll likely realize other cost savings, including lower gasoline bills as a result of eliminating a commute from your daily routine. In addition, don't waste a lot of money initially on expensive office supplies. Instead, consider shopping for discount, and even used, supplies.
Barter
Starting out with little or no upfront capital may mean delaying things that could help your business grow, like a nice website. However, if you have a potential client or customer who has web design experience, propose that you swap services initially. Exchanging services in this way can help you cut certain startup costs, but it can also help you develop a lasting working relationship with a client.
Market Yourself
Even if you don't have the funds to get an impressive website going initially, don't overlook the available free methods of marketing your business. Social networking sites, such as Facebook, Twitter and Linked-In, are a great starting point. But also consider hitting the pavement. Depending on your community, it may be appropriate and well received if you personally visit other local businesses to discuss your concept. And a friendly visit won't cost you a dime.
Go with the Flow
If you're passionate about your project, chances are you've outlined in your head exactly how the business should operate. Unfortunately, no matter how prepared we may be, things often go awry in business. Therefore, particularly if you're working solo in a venture with little or no cash on hand, you have to be flexible and roll with the punches. Adapting to the circumstances may be the difference between success and failure.
Avoid Get-Rich-Quick Schemes
If your goal in starting a new company is instant riches, then perhaps you should reexamine your business plan. Even great new ideas that are well funded usually don't translate into immediate financial rewards. Therefore, someone who starts out penniless shouldn't expect to become a billionaire overnight. The internet is full of get-rich-quick schemes that promise would-be entrepreneurs immediate financial gratification. Unfortunately, most of those are scams. So, unless you have an idea that you really believe in and are ready to work hard for, reconsider whether starting a new business is right for you. And if you find yourself jumping from one great idea to the next in your quest to make a fortune, stop putting so much pressure on yourself and wait until you have a viable idea that you're committed to.
If Money is an Issue
If you need some cash to get started, keep in mind that getting bank financing these days can be extremely difficult. Banks and other lenders carefully scrutinize borrowers' ability to pay back loans. So if your business isn't already well established, you may have better luck elsewhere. Consider sharing your idea with friends and family who may be in a position to invest. And be prepared to provide anyone who will listen with a written business plan that explains your concept and how you intend to make it work. Presenting yourself as professional as possible is imperative if you want to be taken seriously.
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