Practical Tips for Starting a Business Without a Lot of Money

Part 1 – small business startup success

Written by Poppy Williams

Starting a business usually requires some kind of financial investment. For example, if you’re going to open a brick-and-mortar shop, you need to pay for commercial rent. That said, you can still be an entrepreneur, even if you don’t have a six-figure bank account. Below, discover some tricks and resources that can help you start a business with limited capital.

Embrace cost-efficient business models

 Some businesses are more expensive to start than others. Prioritize affordable models.

• Browse this list of business ideas with low startup costs, like tailoring and editing
• Consider a home-based business to avoid the cost of commercial rent. Examples include photography, web design, or affiliate marketing business.
• Once you have a business idea, write it out in a business plan.

Determine how to get funding without spending your savings

You don’t have to drain your bank account. Try these tips to get business funding.

• If you’re considering taking out a business loan, check your credit first and improve it as much as you can.
• Follow best practices for acquiring a business loan, like figuring out how much money you need upfront, comparison shopping, and reviewing offers.
• If a traditional bank loan doesn’t work out, try non-traditional funding sources, like peer-to-peer lending and crowdfunding.

Use technology to help you save time—and money

Greater efficiency can also help you cut costs. Here are some tools to help. 

• Project management software can help you maximize productivity and avoid costly mistakes like missed deadlines.
• Invest in accounting software to help with tasks like payroll and expense write-offs, which can save you money in the big picture.
• Automation tools are another great time- and money-saving asset for businesses.

Hire external experts instead of in-house professionals

Paying full-time employees is usually pricier than hiring freelancers. Here’s how to build your team of freelance talent.

 You can outsource tasks like web design and marketing, saving yourself the hassle and maximizing your promotional efforts.

• Tax preparation is another task worth outsourcing and can lower your tax bill.
• If you aren’t sure where to find freelancers, check out online marketplaces.

Money shouldn’t get in the way of your entrepreneurial dreams. The key to successfully starting a business with limited capital is advanced planning. Trust the tips and tools above to help you strategize your business formation.

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