 |
|
ab |
|
|
|
|
Starting
a Business with Little Cash?
| |
 |
|
How
important is money to the success of a business? The answer is simple: VERY.
Oftentimes, money spells the success and failure of a business. If you
persevere even though you are short of cash, be prepared to face the realities
of starting a business with little funds. by
Nach Maravilla
Publisher/CEO
| |
 |
|
One of the common queries we receive
from our members and visitors is how to start a business with
very little capital to use.
(article continued below ...)
How important is money to the
success of a business? The answer is simple:. Oftentimes, money
spells the success and failure of a business. Businesses fail,
not because of the lack of a business plan, lack of foresight or
lack of competent management, but rather the lack of capital.
Starting a business can help you make money, but as they always
say “You need money to make more money.”
Sure, you can start a business
even though you only have $500 in your bank account. However,
here are some realities you need to face when starting a
business with hardly any capital on your pocket:
1. Choose a business that you can
start with little cash. You can start a business with little
money, but you have to choose carefully what business you can
start. For one, you cannot start a McDonald’s franchise if you
have no available funding. The key here is to be realistic and
adjust your goals and ambitions according to the present level
of your resources. Your mantra should be: start small, yet think
big. If you are planning a restaurant business, perhaps you can
start a small-scale weekend catering business instead until you
have saved up enough capital to establish the restaurant of your
dreams. You can also opt to start on a part-time basis and keep
your day job; or ask your spouse to support you while you are in
a start-up phase.
2. Consider your time and effort.
Starting a business with little cash does not mean that you do
not have any cost. While you may not be spending any money, you
still use up resources your time and effort. Your lack of
resources mean that you have to double your effort and put up so
much time to keep the business up and running.
3. This is the time to keep your
creative juices flowing. If you have no cash, you need to have a
lot of “can-do” bravado on your reserve. This entails
looking for the most inexpensive ways to get things done. If you
have no funds to create your home office, work first in the
kitchen or bedroom. If you want to spread the word about your
online business, skip the banner ads for the moment and instead
spend time spreading the word around in discussion boards,
mailing lists and article submissions. Find ways to cut your
telephone costs, minimize your printing expenses and establish
systems for faster collection. Remember, you do not have the
luxury to splurge even a single cent!
4. Be prepared to do the things
that you have to do. Part of being a small business owner is
taking on multiple responsibilities and tasks. Do you think
selling is simply beneath you? Bad news, mister: you do not have
the finances to hire a sales person to do the selling for you.
As much as you dislike the idea of selling, for example, you do
not have the choice but to prospect for customers by calling
them on the phone yourself or going door-to-door to sell your
wares. Having no money means that you need to be prepared to do
the tasks that you would rather not or may not want to do
5. Be prepared to borrow or
invite investors.
Unless you want to be a weekend, part-time
entrepreneur forever, you cannot ignore the fact that you will
need more capital if you want to grow your business. Many
entrepreneur make the mistake of thinking that they should
borrow as much money as they know they can repay based on cash
flow. But with payments going to service that debt, the business
doesn't have enough money left for growth. If you plan to grow,
be prepared to seek loans in the future.
About the Author:
Nach Maravilla is the
Publisher/CEO of Power HomeBiz
Guides.
|
| ab |
|
|
