So you have decided to start your own business. You know exactly what you want to do (what kind of business it will be), and have all of the knowledge needed to do it (knowing how to run the business, what equipment you will need, how to get supplies, licensing, etc.). Many people who decide to start a business already have the money saved up, others go to investors looking to get start up capital. If you have investors, you have obligations to them, and they get a part of the profits. You can start many businesses with only a thousand or less, if you were lucky enough to find a business where you could do so. Many can be started with a great idea and a few ads, but not all are started so easily. If you only need a few thousand dollars to start your business and you don’t want to have to explain yourself to anyone else, you don’t need investors. After all, isn’t that the whole point of starting your own business, to be your own boss?
But how do you go about getting the money for your business? Most of us are barely getting by financially, or so we think. Many people can easily save $1000 a year or more just by changing a few habits, and maybe without reducing their standard of living.
The first thing you need to do when saving up to start a business is to open a savings account. Many banks will let you open one with as little as $40-$100, and all savings account, regardless of the bank, will earn intrest on the money in them. This interest won’t be much, not when the amounts saved are smaller amounts, but every little bit helps you to get to your goal sooner. The important thing to remember, though, is not to touch any of the money in the account unless you are buying something you need for your business.
Say you work 5 days a week, and you buy a candy bar, at $0.65-$0.75 each and a soda, at anywhere from $0.50-$1.25 each. This is $1.15-$2 spent everyday, $5.75-$10 a week, and $299-$520 every 52 weeks (1 year). And many people don’t just buy one candy bar and/or soda, they buy one at every break. If you feel a need for these things, bring them from home, it is much cheaper.
Another culprit of money spending is newspapers. many people buy their newspapers day by day, but they buy every day’s newspaper, including the weekend edition. Most newspapers run $0.75 a day and $1.50 for the weekend edition. that is about $5.25 a week and $273 a year spent on newspapers that you can get cheaper from the publisher if you just buy the year’s subscription. In a lot of cases, you can read the paper for free on the internet.
See how quickly the little things add up? Just cutting out newspapers and junk food can save over $800 every year. This is a great way to gain start up capital for your business. Add all of the savings to your savings account.
Another way to get money for your business is to bargain hunt. buy off brand items if possible, and second hand items as well. Second hand equipment is the easiest to cut start up costs for your business. You can get used equipment from people who lost their business and from dealers. Take the money that you save from finding deals and add that to your business’s savings account.
Try saving $1 a day or $10 a week whenever you have money left over. This can add up to $520 a year to your capital, plus the interest on it.
As you can see, the above ways are also great for saving money personally. Any way that you can save money personally can also be used to gain start up capital for your business.
Sell items or services to gain money to start your business. It is a good idea to have these items or services related to the business that you are planning to start. For example: say you want to start a hauling service, take your pickup on the weekends and pick up people’s junk. This starts your business, and gets you money for capital to really start your business. Hauling people’s junk is also a good way to start a second hand business, as many people throw away items that are perfectly good or that don’t need much to fix them. Junk hauling is also good for starting recycling centers, junk yards, and eBay businesses. You can make a few cakes and sell them to jumpstart your cake business, or any other thing you want to do. Doing these things also helps you gain a reputation that will be favorable when you really start your business.
If you are close to the amount of money you need to start your business and have an opportunity to get it started that you cannot pass up (for example: the perfect location just opened up, or you found a great deal on machines that you need), a small loan from a friend, family member, or the bank may be just what you need to get your business started. Of course, your first profits should go to paying back that loan, so that your business is in less debt or not in debt at all.
One tip: if you can get something you need for your business that is an amazing deal (on sale, used, etc.) and you have the money to get it, go ahead and get it. Even if you don’t have enough to start the business proper, you need that item anyway, you may be able to save a lot of money on the item, and this is less you have to do later on when you are ready to start your business. You could even start your business sooner, because you will need less money.
These ideas should help anyone wishing to start a business that doesn’t cost a lot of money to start. And without having to deal with investors too.
Once you have the capital needed to start your business, have all of the equipment to start it, and the location, it is time to start your business.