You are all excited to launch your new venture, or maybe it is just an idea germ right now. But the idea of launching your own business is as fascinating as it can ever be. You are at a position where you are ready to take all the risks right now. Leaving your job or any other personal major change are a little less of a hurdle than the one hurdle you are currently seeing in front of you. So, the one major hurdle that is stopping you right now is that you don’t have enough money.
The least amount of money available might look like a major hurdle initially, but it should never stop you from working hard towards your dreams. It is completely possible to start and grow your business with almost no money in your pocket. It just requires you to take a few careful steps and check on wherever you can keep a strict control.
In order to see the necessity of money for the business and ways to start business with almost no money, we need to first understand the the basic of why a business needs money.
Why any business requires money?
Let us first have a look at why at all a business needs money. There is never a uniform amount of fee that a business needs to start with. It solely depends upon the kind of industry you are planning to enter into. All the other expenditure further add to it. You can never actually calculate the exact money that will be required, initially. But, a fair amount can be estimated by calculating all the initial investments that you will be required to do. Depending upon the same, then you can start your research to find out more cost friendly alternatives.
Consider the following uses:
- License and permissions: it depends on the area you are considering to work in.
- Supplies. The kind of raw material you would require to start your manufacturing/activities.
- Equipment. Is there a need of specialised machinery or software?
- Office space. It is one of the huge cost incurred and you can’t neglect basic facilities like Internet, utilities costs, janitorial services.
- Legal fees. Check for the legal formalities and fees you need to pay.
With that understanding, you have three options here to lower down or completely cut the costs initially. In order to attain the same you have three options here:
1. Reduce your needs
The first and the foremost change that you can bring in is, the change in your business model. For example, instead of straight away renting a place for 50 employees ( keeping in mind your future growth), you can rent a small place initially. Or to save maximum of this cost you can start working from home , if feasible. You can even do your homework to find cheaper sources of supplies, or cut out entire product lines that are too expensive to produce at the outset.
There are a few expenses that you won’t be able to avoid, however. Licensing and legal fees will set you back even if you cut back on everything else. According to a study conducted by SBA, many small ventures get started on less than $3,000, and home-based franchises can be started for as little as $1,000.
2. Warmup
The second idea includes as the period of warm up for the business. Here, instead of directly going into full fledged business activities, you can start with basics. Try and start with a niche, smaller audience and little less profits. If you can manage to start a self employed company, you will then be able to reduce some massive initial costs. Once you start realising some revenue, you can invest in yourself, and build the business you imagined piece by piece, rather than all at once.
3. Management of Funds
Your third option is all about getting funds from outside sources and managing efficiently to get the maximum benefits with almost negligible amount of money. The importance of management of funds lies in the core of your understanding on to how to take steps towards growth. While starting a business with almost no money makes the importance of judicious use even higher. You have to carefully spend each penny you have in order to have sustenance. Online invoicing software and expense management tool have become a go to tool for businesses. Startups and freelancers are following and using these tools to have effective management of the cash flow. Online invoicing softwares keep a track of all your account payables and receivables and give you a detailed synopsis for further evaluation. Being a new freelancer it is hard to professionally send your communications and invoices, as you lack experience. But, at this stage when you cannot bear to look amateur, taking the guidance from online invoicing tools can do the 100% efficient job for you. Apart from just formally sending out the invoices and communication, it also helps you manage business activities on day to day basis.
Read More: 3 Easy Finance Management Tips for Small Business
CONCLUSION:
Idea gives birth to the business, but efficient supply of funds help you nourish your germ of idea into a full fledged revenue generating business. Not all have the privilege of efficient funds for the business, but this should never stop the great idea from finding its way to success. Here in this blog we have tried to sort out some of your business needs and how easily you can avoid them at the beginning. It doesn’t count in which stage of the business you are in, but when you learn the art of efficiently managing business funds and generating maximum profits from it. Managing funds is important and to make this complex task easier, available online expense management tools help you in no time. Make sure you check out Invoicera, World’s top online expense management tool for effectively managing your invoicing and expenses. The free online invoicing software is made carefully to alter your burden on finance management.
