Starting and growing your own business is an extremely exciting endeavour but it’s also an expensive one. It can take a little while to make a living out of living your dream so what should you do in the meantime?
If you’re looking to start or grow your business and you’re struggling to secure finance for your venture, there are some things you can do.
Starting your business
Businesses owners looking to get their venture off the ground often believe that they require some kind of finance to get the wheels turning. But is it always necessary?
Bootstrapping can be a personally rewarding path to take as you’ll know that you built your own company up on your own from the ground from scratch. This is how you can do it.
- Start small
Kitting out your own office, paying utility bills and taxes and taking on new staff costs money, so starting out with the absolute minimum you can get away with will help keep these expenses down.
Try to find office space that is ready to use to avoid having to spend out on new furniture and tech. You may also want to look into hiring equipment from a reputable company to reduce the upfront costs until your business is earning enough to buy your own.
When it comes to assembling a team, consider using freelancers or hiring staff on short terms and lower wages. Outsourcing particular tasks could also save you money as you won’t need to accommodate having another person working in the office, meaning you can get away with an even smaller workspace.
- Borrow from loved ones
Whilst it may not be ideal, if you’re really struggling to access finance from more traditional sources you may be able to approach friends and family members for some funding.
Remember to provide them with a thorough breakdown of your business as you would with any potential investor, providing them with realistic payback dates too.
Growing your company
If your business is up and running but ready to take things to the next level, you don’t always need to secure finance in order to fund growth.
- Accelerate your income
If you’re needing more money to buy new equipment, take on new staff or fund your growth in some other way, increasing your profits is obviously the way to go.
You could do this by raising your prices or fees but be careful to do this in a way that does not scare existing customers off. You may also want to explore the idea of adding complementary products or services into your offer; broadening the scope of your business without costing yourself more money.
- Reinvest in yourself
When your business starts to make more money, it can be extremely exciting and feel like you’ve really ‘made it’. But, whilst it can be tempting to sit back and enjoy your profits, reinvesting the money you have made in your company can give you the money you need to grow without the need for outside finance.
Allocate your cash primarily for the products and services you know to be the most profitable rather than expanding in new lines if money is tight. Then, when you have enough liquid money to play with, you can start investing in new areas and equipment to help your company grow.
Work with your TWP accountant
The TWP team are experts in SME growth and funding start-ups. We’ll be able to help you better manage your money and organise your profits in order to fund your own growth and success. For further advice on securing alternative finance, business loans and other methods of growing your business, please call us today on 01932 704700 to discuss how we can help you.