8 Easy Tips For Small Business Financial Management
February 17, 2023
There’s no need to dip into your savings when starting a business. Developing a new concept isn’t necessarily going to cost you much.
If you’re ready to start a business but don’t have a lot to invest, read these tips from Blueberry to learn how you can launch your business on a shoestring budget.
Simple Startup Tips for Entrepreneurs on a Budget
A business startup doesn’t have to be cost-prohibitive. Choose a low-cost business idea. Consulting, content creation, and selling digital products and services are examples of businesses you can start with little to no money.
Build a bootstrapping roadmap. Identify your minimum viable product, essential tools, and your strategy for managing cash flow and reinvesting profits. Operate as a limited liability company. An LLC is cheap to file and doesn’t require complicated paperwork or hiring a board of directors.
Find affordable legal services. Several resources offer free and low-cost consulting for help with contracts, taxes, and other business questions.
Budgeting: When to Splurge and When to Save
Cutting costs is important, but some expenses are worth the money.
Save on: Office space. Jotform notes that fully-remote businesses with remote employees working from home offices make commercial rent a thing of the past.
Splurge on: Ergonomics. Desk chairs are available as low as $50 but you’ll get better results by spending at least $100–$200 for ergonomic office chairs.
Splurge on: Internet service. Business-grade internet plans offer higher speeds, premium services, and greater reliability to ensure business continuity.
Save on: Software. Grasshopper points out that free and low-cost software solutions save money while improving efficiency, managing data, and informing business decisions.
Splurge on: Marketing strategy. A strong brand identity and targeted marketing strategy grow your company’s reputation and directly impact sales.
Save on: Marketing tools. While you want to spend your marketing dollars wisely, use free tools for producing your own infographic ideas, for example, to save where you can.
When to Seek Outside Funding (and Where to Find It)
Your own bank account isn’t the only place to find business financing.
Take out a business loan. Before you sit down with a lender to discuss loans, check your credit report. If your credit score is too low, banks and lending institutions will see you as a risk. It’s best to wait until you can build up your score or pursue other funding options.
Explore loan alternatives. Microfinancing, crowdfunding, peer-to-peer lending, and short-term loans are financing options when you can’t get a traditional bank loan.
Look into grants. Some businesses, including women- and BIPOC-owned businesses, may be eligible for grants that don’t need to be repaid.
Find Your Financial Balance
There’s always risk in starting a business, but you don’t have to put your financial security on the line to pursue entrepreneurship. From bootstrapping to bank loans, there are options for starting a business with minimal self-financing. Find the options that best fit your business’s needs, and reap the financial rewards.
