How do I get my business started with a limited budget?
I have incorporated a business name legally in my country with the government agency that handles business registration and have procured the basic documents and tools to kick-start the business of selling cement and handle general contracts, but I do not have financing. What's the best way to get started on a low budget? Should I focus on getting funding? If so, what's the best source of funding for a business like mine?
I have a questions for you
In what country has this business been started? (It does make a difference! Taxes, regulations, etc.)
What type of business is it?
There are NO government agencies offering loans to small businesses. They only guarantee the bank on those loans and they are mostly for government contracts.
You must have 3 yrs tax, P&L, business and marketing with the customary 30% down before you even think about starting the loan process.
Crowdfunding may be a option for you.
Check your local SBA & SCORE office or visit SCORE.org for more correct information.
If you have contracts or larger orders: purchase order financing maybe able to help you finance the purchase of materials. A factor can help accelerate cash flow by buying your invoices.
Basically, you only have a business idea and a business by name only. I would not start a business without the financing in place.
First, you need a solid and realistic business plan. You need to find the financing required the following ways:
1. Banks 2. Other financial institutions 3. Government grants or loans 4. Personal loans 5. Loans from family and fruiends 6. Investors 7. A combination of the above.
You then have to be able to develop the business with a plan to repay back all your loans with your profit, and to reinvest into your business. Looks like you have got a long way to go yet.
Go find a Client, easiest way to get money in the door..if you can't do that ten your business is doomed before it had began.
I suggest writing a Business Pan and two budgets.
1. Start Up Budget
2. Operations Budget
This information will, provide both focus and clarity how to go forward.
The Fnancial Plan will also provide a break even.
Congrats on the new business! There are 3 ways to get started on a low budget.
1. Take a look at who your "Ideal Client" is - what are their frustrations, their desires, who do they buy from now, what do your competitors do well or not well. Compile as much information as you can.
2. Make connections with as many ideal clients as possible. Have conversations with them and clarify the information you have already found. Then find out what is most important to them when purchasing cement. Then find out what it will take for a company to exceed their expectations. Once you have built those relationships, then sell your product and services to them - verbal or written commitments. Purchase orders are best.
3. Then take those commitments you have received and get funding. Your pre-orders will virtually guarantee that you can get funding to get supplies, distribution and manufacturing done to complete your orders.
Hope this helps!
For more information feel free to reach out to me:
Business Strategist, Consultant and Autor
DavidBrownlee dot com
Well, the first thing you have to understand is that low funding means much efforts. It's hard yes, but.. But you have to work on that wiser not harder. You can rely on outsourcing and freelance websites to get what you want with the lowest price. Second, present your good as a guru, and people will look on you. Website might work just if you corroborate it with in-field visits to related stakeholders. Last, your team is your first way and soley way to succeed. Remember! in order to succeed you need three: good methodology (business plans,. etc), finance, and good team. Now abideth Methodology, Finance, and good team...these three.. but the greatest is: S.M.A.R.T team.
Surely Mfon, if you have no finance to commence you don’t actually have a business with which to start trading. What facilities, capabilities and markets are you considering targeting? What competitive advantages are you positioned to exploit? Have you a business plan? That would be so much more valuable than any name!
Congratulations, you've taken the first step, Mfon!
I am not sure what your business is (it appears its retail); however, if that's the case, you definitely want to secure some funding and build stock. As a marketing practitioner, I would suggest starting to build a buzz about your business, online and off. Start talking about it in professional circles, seek out referral sources, and start some online promotion as well (social media and Web site). These are inexpensive (or free) options; as your revenues grow, you can add more promotional opportunities (including events to drive traffic to your store), and more costly advertising and awareness campaigns. Consider reading up on concepts like "bootstrapping" and "lean startup," concepts I talk about with my small business and entrepreneur clients regularly.
Wish you the best in your endeavor!
Business Promotion through Donation?? Charity for Business??
You can get loan or Investment Partner for your Business and it is available with Govt. agencies, Banks and Financial Institution..