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10 tips to starting a business on a shoestring
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1. Be prudent
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Do you really need a leather swivel chair and a computer with go faster stripes? You need all the money you can get when starting a business so why waste it on the latest gadgets when cheaper items will suffice? Computers and furniture can be purchased quite cheaply these days. Keep an eye out for sales and scan internet comparison websites for bargains.
Even better than cheap is free, so ask your family and friends if they've anything going spare or check out services like Freecycle for useful items people are trying to get rid of.
The same principles apply to items like stationery. Those expensive, embossed business cards may look good but will they be anymore effective than simpler cards which cost half the price?
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2. Keep overheads down |
Doug and Mary Perkins, founders of Specsavers, and Steve and Julie Pankhurst, who set up Friends Reunited, are some of the UK's successful entrepreneurs who started their business at home.
Renting or buying premises is one of the biggest costs faced by business owners so working from home helps to keep expenses down in the early days. Make sure that home and business life is kept separate. Dedicate a specific area as your work space and try and establish a daily structure.
Many entrepreneurs run their business from a garden shed or summer house, which are perfect places for creating a divide between your personal and business life. Alternatively you may consider converting an underused garage to a smart new office – also giving you a separate entrance for customers – you may not even require planning permission – a quick phone call to the planning office will clarify. |
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3. Shared space |
For some business owners, external premises outside of home may be necessary but rather than investing in your own expensive space, ask other small businesses if you can share theirs. If you're providing a product or service which could complement that offered by an existing business, speak to the owner to see whether he or she would be willing for you to occupy an area in their office or shop in return for a small fee or a share of your sales. Another option is to check out business incubators and hubs specifically created for young businesses. They offer lower rents, office support services and avoid you being tied into lengthy leases. |
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4. Call in all those favours! |
Getting free help in the early days of running a business can be the key to early success. While you may not have the cash to pay someone, ask your friends and family for assistance. Most will be more than happy to give you a helping hand, enjoying being involved in the evolving business. Consider extending the search to local schools, colleges or universities for young people looking for some work experience. It’s possible to help other people along the way! |
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5. Embrace technology |
On-line directories can be a great way to promote your business and many allow you a basic listing for free. Among the several on offer is the UK Small Business Directory. Services such as UK Business Forums also include directories in which you can get a listing.
The popularity of forums and social networks have given business owners more opportunities than ever to promote their services. Networks like UK Business Forums allow entrepreneurs to interact and exchange ideas with other business owners, while sites such as Facebook allow you to target potential customers. The key to them all though, is building trust and developing relationships rather than blatantly promoting your business.
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6. Be a blogger |
Blogging is another cheap way of getting your name out there. It is also an easy way of keeping your website content fresh and interesting. Write regularly on issues relevant to your business and build up a regular following.
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7. Sell yourself |
Getting editorial coverage in the press is one of the most cost effective ways of promoting a business but taking on the services of professionals can be beyond the budget for many start-ups. However, it is possible to do your own PR. Think about why you're different or latch onto a topical story and put together a press release. Track down the names and email addresses of journalists writing about your sector and target them. Work on building up a good relationship with particular writers or broadcasters by offering to comment on issues relevant to your business. It may take time but it's a great way to build a profile and market your business for little or no financial cost. |
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8. Advertising on a budget |
Get some leaflets printed and pound the streets delivering them – remember the friends you enlisted earlier – use them! You could also check whether local supermarkets, libraries etc will allow you to put a poster on their walls. Parish magazines and community newsletters are another cheap way of getting your name out there. You may be targeting a national or even international market but don't ignore the potential customers on your doorstep. Once they know about your business, they will start talking about it and telling the people they know. |
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9. Network like crazy |
Networking events have increased in popularity over recent years which gives you hundreds of opportunities to meet other business owners who you could work with or would be interested in buying your product or services. Membership of organisations like the Federation of Small Businesses gives you access to such events but there other lots of other opportunities to make contacts.
While there are lots of networking events available, to make the most out of them you need to do more than just turn up. Make sure you take along plenty of business cards and identify your goals beforehand. You should also take the initiative to approach others and start conversations but also make sure you always listen to what others are telling you. |
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10. Cash is King! |
In your first year of trading, cash flow is critical and following the previous nine tips will help to keep your expenditure to a minimum.
Entrepreneurs tend to be naturally competitive. Use this to your advantage by ensuring you have an effective system for recording your income and expenditure, so you know how successful you’ve been each month. Then try to beat last month’s figures! Nothing drives people to work harder than having a measurable indicator of success. |
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Above all, remember why you decided to start your business. Recall the initial excitement and anticipation when you decided you were going to take the plunge!
Think about this and all the benefits you derive from being your own boss.
It wont be easy, but it will be all yours! |
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