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It’s no secret that money is the key to small business survival, with 82% of business closures being attributed to poor cash flow. However, for many, it’s also a barrier that stops them from getting started – even if they have a great business idea in mind.
Fortunately, it’s important to know that while tricky, there are plenty of steps you can take that will allow you to start a business with limited funds!
1. Know how to market yourself
Marketing will likely become one of the biggest expenses as your business grows. However, during your company’s infancy, this is something that you can do yourself without having to spend too much money. For example, you can use free-to-use tools such as canva to design compelling and interesting graphics for your social media posts.
You can also rely on other, more old-school forms of marketing, such as word-of-mouth marketing, by offering consistently high levels of customer service!
2. Know when you need to spend money
While you’ll have a specific budget in mind when it comes to starting your own business, it’s equally important that you know when you need to spend money as opposed to saving it. For example, there are certain tools and equipment that you’ll need in order to kickstart your operations and run a successful business, which means that investing in them is a non-negotiable.
For example, if you are planning to launch a restaurant or coffee shop, then you’ll need to invest in a commercial freezer. This way, you can keep produce fresh for longer and avoid breaching any food safety and hygiene regulations. Furthermore, as these products last for years on end, this is not something that you’ll need to replace in a hurry, meaning that each pound is a pound well spent!
3. Reach out to business investors
While you may have saved up for some time in order to have the money set aside to kickstart your business, remember that you do not have to be the only source of funding. For example, you could also reach out to investors who have worked on similar projects or businesses before and are, therefore, in a great position to help you. After all, not only will they have access to the money you need, but they’ll also have unparalleled industry insight too!
However, it is often not as simple as reaching out and asking for money (and if you try this method, you’re unlikely to get very far). You need to give potential investors a reason to trust you. This means that you have to develop a flawless business pitch that highlights exactly why you think your business will be a success, what you will do with their money, and the potential long-term benefits you can bring them through your partnership.
You should also make sure you reach out to investors that you can see yourself working with or those with whom you share some common ground. This will make for a stronger relationship in the long-run.
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