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Start-up cash is quite a hurdle to jump – but make no mistakes about it- YOU can high-kick over that mo-fo in no time. Stick with me and I’ll show you how.
So you have this amazing business concept or maybe your interested in the idea of launching your own business. AWESOME!
Then reality starts to sink in…
Wait, I don’t have extra cash for this venture. My rent was 3 days late last month and Sprint keeps calling me to make a payment. Why am I paying them $300 a month for one phone anyway?!
Your willing to take a risk, but your steps MUST be calculated. And there is one major issue stopping you. Money, mulla, cheddah, cheese, guap, stacks…yeah, all that…and the (ehem)…lack there of :-/
Well I am here to tell you that its COMPLETELY possible to start and/or grow your business with very little of your oh-so-sacred money!
But you have to know what your doing. PERIOD.
First things first, lets look at what expenses you may or may not need depending on your industry!
Licenses/permits: Depending on where you live (and do business), you may you may need special paperwork or registration to operate.
Equipment: Will you need a specific program or software or machinery to start your business?
Office Space: C’mon do you really need this, NOW? It’s a huge expense and you’d also have to consider utilities, Internet, computers, furniture, etc.
Memberships and Subscriptions: Are you interested in becoming affiliated with various publications to keep abreast of your industry? How much do they cost?
Operating expenses: How much will it cost your business to start..and don’t forget about MARKETING!
Legal Fees: Will you need to consult with an attorney to help you throughout your business development journey?
Employees and Contractors: Lets be real. If you’re opening a restaurant, you’ll need a staff. If you’re launching a personal blog- you don’t.
So now that we’ve got that out of the way, lets figure out what your REALISTIC options are.
If you answered, “Yup, I need that” to 4 or more of the above business needs, here are some examples of where to cut your ‘start-up’ costs!
Don’t Be Needy!
- Be the lone ranger: You may need a staff, but for now, consider being the sole employee.
- Work from home; don’t get an office unless you absolutely need one.
- MAKE YOUR BUSINESS LEAN Take a look at your business model and keep trim that unnecessary stuff!
- Launch with what costs you the least to produce and yield the highest profit.
Okay, truth bubble! There are expenses that you simply cannot avoid! But there are ways to get most of it for (almost) free!
Bootstrap that thing!
Think of this like a warm-up to your workout routine. You don’t just jump straight on the treadmill. You have to take it slow! You stretch those legs, and then the arms, roll your neck, get your playlist rockin, step on, start slow and BUILD. Same thing for your business, baby! KISS (keep it stupid simple)! If you’re a service-based business, focus on your paper-route! What can you do simply and easily to bring in passive monthly income? Now do that! Once you start pulling in some cash, then you can reinvest and launch more services, products, etc.
What can YOU do for me?
Friends and family. Don’t rule out the possibility of getting some start-up funding from your friends and family! Click here to create an awesome pitch deck and show them your business’ value!
Angel investors/Venture Capitalists. Uber successful folks, organizations or partnerships that love to invest in awesome business ideas early. They usually invest in exchange for partial ownership or stakes in your business. DON’T rule this out! It may be worth it, or not. You’ve got to do the WORK and figure it out!
Crowdfunding: Its popular for a reason! If you have a GREAT idea and a solid plan, you can source money for just about anything. No seriously, anything. Here are my favorite crowdsourcing sites
There are a few that I will not discuss, because lets be honest, they are nearly impossible to get and require too much effort during the start-up phases. These possible, but time-consuming options are government grants and loans, bank loans and business credit lines. I don’t recommend starting a business with these because you could potentially do more damage than good. But we’ll get in to that later!
Choosing one of these three options should help you reduce your personal financial investment for your business to (almost) nothing. You’re going to have to make sacrifices along the way…and take some risks. BUT if you believe in your business idea, then these sacrifices WILL NOT stand in your way!
SOURCES/INCENTIVES: (all with my branding)
- Business expense spreadsheet
- Review of top 3 crowdsourcing sites
- Create a Power Pitch deck e-course OR downloadable template in PPT
- Lean Business Plan template (aka Executive Summary)