You don’t necessarily have to have much money before starting a business. Here are four tips for creating your startup without a lot of funds.
Networking helps you establish a strong presence in the business world to find advocates willing to promote your work and possibly help you for free. Building relationships with other entrepreneurs of various ages, nationalities, areas of interest and levels of experience helps you gain insight into overcoming financial obstacles involved with creating a startup. You’ll be better positioned for sharing and developing ideas while finding potential investors for your company.
Be sure you have a written business plan and specific business goals for helping your startup succeed. Also, follow up with your connections so you remain memorable and ready for the next step toward making your business a reality.
Find an Angel Investor
An angel investor is someone who has a net worth of at least $1 million, earns $200,000 annually if single or $300,000 annually with a spouse, and gives you funding for your business in exchange for equity in your company. Angel investors typically include doctors, lawyers, former business associates or entrepreneurs. They often invest around $600,000 each, and details on each investment must be filed with the Securities and Exchange Commission (SEC).
Angel investors may be used when a company is already started but needs funding for product development, creating a marketing strategy or moving to the next level. Investors may even mentor small business owners since they have a financial interest in their company and want to see it succeed.
Keep Costs Down
Because you maintain a professional appearance while retaining enough funds for daily operations, it’s important you keep your budget to a bare minimum. For example, rent office space in an appropriate area that fits your budget and serves your needs for the time being. Buy office necessities, such as furniture and technology, secondhand or from a discount store. Purchase office supplies in bulk. Lease equipment rather than buying it. Hire carefully and coach your employees to improve so you save on labor costs. Offer lower salaries and perks such as flexible work hours in exchange for bonuses based on company earnings. Write your own press releases so your business gains visibility.
Sell Through Crowdfunding
Because banks are increasingly tightening their lending restrictions for small business owners, you may want to look into crowdfunding. Crowdfunding allows small business owners to raise up to $1 million annually by selling stock to individual investors. Stock is sold online to maintain compliance with applicable laws, and stock amounts are limited by each investor’s income. Crowdfunding is especially beneficial for small business owners with a strong, engaged customer base. The average amount raised is $700,000.
Starting a business is challenging, but you don’t have to go it alone. Reach out to the professionals at USA Staffing Services today and learn how our back office solutions can help your new business!