Thank you to our guest blogger, Derek Goodman of Inbizability for today’s post.
You can Start Small (And Still Meet Big Goals)
Modern tools have made it easier than ever to launch a new business. Technology is more accessible, and innovative ideas help reduce costs. Using a shared workspace is just one example of how a first-time entrepreneur can accomplish more without throwing your life savings into your business. We think it’s wise to start your new business with a measured approach, and these tips will help you do just that – get your business off to the right start without investing more time or money than you’re prepared to spend.
Research and Planning Are Your Best Friends
As a new business owner who errs on the side of caution, you’ll want to approach the process with thorough research and planning. Business News Daily breaks down the essential steps to starting a business, with the first two being (1.) refine your idea, and (2.) write a business plan. This may seem like a major task, especially if you aren’t ready for this endeavor to be your full-time gig. You don’t want to skip this step, though, because the work you do now will pay off in the long run. Thankfully, the planning phase requires a minimal financial investment, even if it does take time.
Part of what you’re doing in the planning phase is working out key details, which helps you avoid mistakes and respond quickly to any setbacks. This step will also help you determine what resources you need, as well as whether you should seek additional funding. A crucial part of this step is to think about more than just initial needs and anticipate what you might need for growth.
If you’re stuck and you’d like some professional assistance with business development, the experts at EWR Management Group can help you develop the perfect roadmap for your needs. This way, you can get started on the right path ASAP!
Start Small (And Be Ready to Grow)
If you decide to look into financing, there are a few options to consider, even given the current pandemic. One source is government financing, like SBA bridge loans or The Main Street Business Lending Program. There are also private companies and even non-profit sources for small business grants. Having an extra source of funding early can help take the worry out of starting a business, plus it means you’ll be prepared to meet your needs for growth, such as hiring employees, expanding inventory, or purchasing more equipment.
While it’s smart to plan for growth, you’ll want to keep initial expenses to a minimum. Again, this is where careful planning helps, because the planning stage is where you discover ways to start small while still meeting your needs. An obvious example is the benefit of using a shared office, which gives you the space you need without the bigger investment of renting an office.
Cut Costs Without Cutting Corners
As Entrepreneur explains, there are certain business needs that are essential from day 1, like having a website, credit card processing, and a solid marketing strategy. But how do you know what’s essential and what can wait? When you’re deciding which investments need to happen now, there are a few general questions to keep in mind, like whether something is a basic tool for doing business (like your website.).
Another question is “what are the consequences of NOT making that investment?” For example, you could get away with developing an initial marketing plan yourself, and the worst that might happen is that you don’t reach your target audience as fast as you’d like. But if you fail to adopt a system for keeping financial records, the consequences could be much more severe.
Another way to make sure you’re saving money without cutting corners is to stretch your budget on necessities. For example, the blog Bplans suggests using open source software and cloud computing as a way to save on technology. And if you provide a service or product that other businesses need, chances are pretty good that another small business owner would be willing to trade.
In many ways, becoming an entrepreneur requires a different mindset than you use as an employee. Starting a business is both scary and exciting. That’s why we love the smart approach of starting small and investing wisely – all while keeping the door open for future growth.
Photo credit: Pexels
