Setting up a new business can be an expensive business unless you start planning your costs early and thoroughly. There are many ways to boot strap your business, keep overheads low in those important early months and ensure that your business has a strong footing on the path to success.
Alternatives to Bank Loans
Crowd funding can be a great source of early stage investment into a business idea. Businesses can raise hundreds of thousands of pounds quickly and effectively without giving away a great deal of equity. There are now specialist websites designed to help you get expertise, investment and a successful platform to grow. This can often be significantly cheaper than a bank loan or similar traditional investment routes. Also look at places that provide bridge loans like net loans.
Offices and meeting space
Office costs can be one of the most significant investments that are required when setting up your new business. It is possible to work from home and continue to have the profile of a larger company. If James Caan is able to start his business empire from inside a broom cupboard. The broom cupboard in Mayfair was the starting point for a company with £130 million turnover and shows that with some imagination getting a great business address is within the reach of all new businesses. Look at using a virtual office to increase the bankability of your address and have a receptionist to take your calls as a way of improving the outbound persona of your website.
Marketing and Promotion
Using the cost effectiveness of the Internet can make the online space highly effective. Beware that building a website alone will not result in effective traffic and a stable growth in customers. Search engines such as Google offer cost effective advertising on a per visitor basis and channels such as affiliate marketing can help to grow your business on a sale only basis. Many online marketing activities can take place from day one without the need for a dedicated partner in this field. Online services for everything from creating business cards to developing a brand identity are all available online and for free so take advantage of everything you can.