Are you one of those people that thinks it is too pricey to open your own company? Lots of people who have dreamed of launching a company never followed through since they assumed that they would not be able to handle start-up expenses.
However, a large number of successful entrepreneurs will confirm that the key to launching a company is to be creative with funding. There are numerous companies that have been started with minimal funding – out of a garage or even a bedroom.
You don’t necessarily need lots of cash to get started, however, it does help to be aware of a few of the tricks to building a company with limited financing. Below are some “out of the box” methods that you can use to your benefit.
Services VS Products
Start by offering a service instead of a product. Inventory costs money – to obtain it, to store it and to deliver it. Rather than handling this cost right up front, utilize your skills or knowledge to offer a service to others that costs you little or nothing to do.
For example, if you understand graphic design and currently have a computer system, you can design websites for individuals. If you have experience with animals, you can provide pet sitting or dog walking services.
Marketing services does not mean that you can not sell merchandise. It simply means that you might be better off beginning with services then integrating products once you have the money to purchase them.
Trading and Leasing
Barter for equipment or materials. Some businesses require that you have certain equipment to perform the service. If you do not currently have these materials, they can be costly to purchase.
Instead of giving up on the concept of entrepreneurship, why not make an exchange with friends, neighbors or even local companies? You may have the ability to borrow the gear you need in exchange for providing a service free of charge to the other party. Some examples include a yard mover or a weed trimmer to provide yard services.
As your clients and earnings increase, you can take that money and purchase your very own gear. Speaking of using other people’s stuff, you may also be able to lease the machines, automobiles or gear you require short-term.
For materials that you use occasionally, you might choose to simply rent them when you require them – even in the long term.
There is no guideline that says a company has to have everything it needs when it opens it’s doors. Start with the minimum quantity of materials that you need to successfully do your work. You don’t need to have a finished website, a company uniform or a toll-free number your first day on the job.
Using this approach also allows you to grow your business according to your clients’ needs and wants – which might be different that what you think.
For example, if you decide to start a cake decorating business out of your house and find that many of your clients request cupcake desserts, you can then invest your cash on cupcake materials where it will make you the most profit.
If you cannot afford everything up front, don’t attempt to purchase everything. Instead of not going for your dream, just start small.
If you want to find out more about 10 business ideas you can start for free, go here