Launching a startup can be challenging, especially when you are doing so on a very tight budget. You have to be careful to ensure your lack of finances doesn’t overshadow your idea and cause it to die.
Do you have a shoestring budget and you’re thinking of how to launch your startup? | Source: Unsplash
If you have a great business idea and a shoestring budget, several ways exist to go about launching your startup. Here are six important steps worth considering when launching your startup.
- Determine how much you have to invest
The first step to launching a startup on a shoestring budget is determining how much you have to invest in the business. There is a huge difference between how much you have to spend and how much you have to invest.
Also, the amount of money you have in your account may not necessarily be all you want to use to run a business. So, first things first, you have to determine how much you are willing to pump into the startup.
When you figure out how much you want to invest, you will be better prepared.
For example, if you have $2,000, you can decide to invest $1,000 in your startup. That way, you can start planning how best to maximize that $1,000 when launching the startup.
- Assess the business idea
Assessing the business idea is very vital when working on a shoestring budget. In accessing the business idea, there are some important factors worth considering.
First, you have to determine the feasibility of the business idea based on the available budget. Here, you have to ask yourself certain questions like:
- Is it possible to launch this startup on this budget?
- Can I sustain this business idea on this budget?
After considering the feasibility of the business idea based on the funds available, the next thing is to consider certain things you can cut down on. It may not be possible to get everything together immediately after launching.
You have to decide on the essential things the business needs to run on. Everything else can come after as the business grows and records more profit.
After successfully assessing the business idea, you need to create a priority list for launching the business. This list will guide the launching process and help you ignore those things that are not necessary and focus on the important tasks at hand.
- Create a business plan
When you’re done assessing the business idea, and you have created a priority list, the next step is to create a business plan. Every business – big or small, runs on a business plan.
The business plan designed varies based on the type of startup you want to launch. Considering how tight your budget is, you may not have the luxury of outsourcing the creation of a business plan.
The internet can be a very helpful guide for you in creating a comprehensive business plan. Read through several templates available and find out what the business plan of your competitors looks like.
When you do this, you will not only come up with a comprehensive plan but you can also save the cost of outsourcing the plan as well.
- Plan an execution strategy
The quality of every business plan is measured by its execution strategy. Without an excellent execution strategy, a good plan is just another plan.
The execution strategy for launching a startup tries to examine all the market entryways for the business.
Launching a startup on a tight budget means you need the best ways to grow the business from scratch. With this, it becomes possible to get more funds to sustain long term.
As a new business owner who has spent time worrying about how tight your budget is, it may be difficult to develop a comprehensive execution strategy. As such, the best option is to use already established resources that may be available to you. Here again, the internet is a good place to look for help if you want to do it yourself.
For example, if you want to start a clothing line, use Google to search for the best clothing lines. Study their brand and the execution strategy.
The funds you have to launch the business may not be enough to follow through on all your competitor’s execution strategies, but it will give you a good idea of what yours should look like.
A good execution plan helps you manage your resources better and spend less launching. | Source: Unsplash.
- Consider alternative means of funding the business
You probably still have a shoestring budget for launching your startup because you have not considered alternative funding sources. Perhaps, all you have are savings you have accumulated over the years.
Besides what you have been able to gather yourself, why not consider speaking to your friends and family. They could assist with some money that can boost the budget needed to launch the business.
You can also consider the option of applying for business grants. Here, you will need to provide the details of the business and the contribution it will make to society before you can be eligible.
Finally, you can also consider taking bank loans to increase your budget and ensure the launching process is perfected. With this type of funding, you are less likely to have to worry about going into debt, as you will be adequately funded up front.
- Consider going virtual with your business.
If your budget is so tight that it appears it cannot be enough to execute your business strategy, there is another way out. Instead of shutting down that business idea in its entirety, you can consider going virtual.
We live in a world where you can create an online presence for your business idea. When you take your business online, you can save yourself the operational cost of buying or renting a structure and paying employees on a full-time basis.
Conclusion
Many people have great business ideas but shoestring budgets to see their ideas through. Instead of canceling the launch of your business, you can follow through on the steps discussed above.
Determine your available budget, create a business plan and execution strategy, consider alternative means of funding the business, or try going virtual.
References
Forbes: The Complete 35-Step Guide For Entrepreneurs Starting A Business
The Balance SMB: How to Evaluate a Business Idea Before Taking the Plunge
Inc: How to Write the Perfect Business Plan: A Comprehensive Guide
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