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07 August 2013

Don't Let Lack Of Money Stop You From Opening Your Own Business

By Kate Colace


Do you assume that it is too costly to start your very own company? Many people who have wanted to start a company never followed through because they figured that they would not be able to handle start-up expenses.



Nonetheless, a multitude of successful business owners will confirm that the key to starting a company is to be creative with financing. There are numerous companies that have actually been started with very little financing - out of a garage or even a dining room table.

You do not necessarily need a ton of cash to start, however, it does help to be aware of a few of the keys to building a business with minimal financing. Below are some creative methods that you can use to your benefit.

Products or Services

Start by offering a service instead of merchandise. Inventory costs money - to obtain it, to store it and to deliver it. Rather than handling this cost right up front, use your skills or knowledge to provide a service to customers that costs you little or nothing to do.

For instance, if you understand graphic design and currently own a computer system, you can design websites for people. If you have experience with animals, you can provide pet sitting or dog walking services.

Selling services does not mean that you can not sell products. It simply means that you might be better off beginning with services then incorporating merchandise as soon as you have the cash to invest in them.

Bartering and Leasing

Barter for equipment or supplies. Some companies require that you have certain gear to do the service. If you don't already have these materials, they can be expensive to purchase.

Instead of quitting on the idea of going into business for yourself, why not make an exchange with pals, neighbors or even community companies? You may be able to borrow the gear you require in exchange for offering a service free of charge to the other party. Some examples include a grass mover or a weed trimmer to offer yard services.

As your customers and income increase, you can take that money and purchase your own gear. Speaking of using other people's things, you might also be able to rent the machines, automobiles or gear you require short-term.

For materials that you use occasionally, you may choose to just rent them when you require them - even in the long term.

Start Small

There is no policy that says a business needs to have every little thing it needs when it opens it's doors. Start with the minimum amount of supplies that you need to efficiently do your work. You don't need to have 1,000 business cards, a company uniform or a toll-free phone number your first day working with customers.

Using this technique also enables you to grow your company according to your customers' needs and wants - which may be different that what you initially thought.

For example, if you decide to start a cake baking company out of your house and discover that most of your clients request cupcake desserts, you can then invest your cash on cupcake materials where it will make you the most money.

If you can't pay for everything, do not try to buy all of it. Rather than not going for your dream, just start small.




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