.The problem faced by many small and home-based entrepreneurs is that they want to start a business, but they have very little capital. Given that insufficient capital often is a reason why businesses fail, starting a business on a shoestring budget makes starting a business doubly challenging than it already is.
Nonetheless, it can be done. There are men and women who have started their businesses with very little capital, and then grow into big businesses later on.
From the article “10 Rules for Bootstrapping Your Business,” here are some tips on how to start your business on a shoestring budget
- Think twice before borrowing, as you want the business to give you an additional source of income and not another bill to pay.
- Be lean and mean; spend money only when you really have to
- Choose your business carefully, preferably one that can be started even with little capital
- Make sure that there is demand for your business
- Be creative; you will only survive as a boostrapper if you are able to use your wit and creativity to extend the meager resources that you have
- Run your business with a passion, as you need all the ammunition you need to meet the challenges of jumpstarting a business with little capital
- Understand that your customers are your gold mine, and take care of them really, really well.
- Think cash; find a business that generates cash fairly quickly and always select cash payment opportunities
- Keep the money rolling and make sure that you keep a certain percentage of the profits for the growth of the business