Starting a Startup on a Stingy Budget

No matter how good your idea is, you won’t be able to turn it into a successful business without adequate funding. Of course, your first-year budget doesn’t have to be as large as that of your bigger counterparts, but then again just launching a company will require a sizable sum. Luckily, in the startup-friendly era of 2017, every potential business owner has more than a few ways to acquire the money needed for the launch of their startup. Here are four ideas.

1.      Sell an asset

The easiest and probably the simplest way to gather funds for a new company is to sell an asset you own. We are talking about things like property, vehicles or even jewelry. A lot of people are reluctant to do so for both practical and sentimental reasons, but as an entrepreneur, you need to look at the bigger picture. Selling your place and moving into a smaller one is a temporary setback. Later on, when your business becomes profitable enough, you could move into a home that’s even bigger than the one you sold. It all comes down to how much you personally believe in your own vision.

2.      Get a loan

The most obvious solution to this problem would be getting a loan. Here, you have several options. You can apply for either corporate or personal loan, but you also have a great variety of choices when it comes to the lenders. The most common choices are banks or credit unions, but sometimes an alternative can serve you even better. For example, going with a loan or mortgage solution provided by a company such as NSWMC does not require you to get as much documentation and you can even get a loan without any collateral. One last thing, some people prefer to go to their friends or family for a loan, although this sometimes tends to further complicate already strained personal relations.

3.      Go with crowdfunding

Another thing you could do in order to launch a startup on a stingy budget is to go with one of the numerous crowdfunding options online. Your safest choice, however, is probably to go with Kickstarter, seeing how this particular platform is great place to present any type of idea. In fact, one guy even managed to gather about $55,492 to make a potato salad. Overall, the key here isn’t how good your idea is, but how great your persuasion skills are. This is why, it might be worth your while to learn a thing or two about making a persuasive presentation before you start with your Kickstarter project.

4.      Keep your day-job

Finally, you can use another source of revenue to fund your startup. Some people decide to get a tenant, others choose selling stuff on eBay, while there are those who decide to keep their day-job, at least for the time being. The greatest problem with this idea is the fact that not every industry will allow you such a luxury. Sure, there are some startups you can run during your free time, but the greatest majority of them will require 100 percent of your time.

Conclusion

As you can see, while it can be difficult, it is definitely possible to start your own company even on a tight budget. Of course, there are some other options we’ve failed to mention, like getting a partner, looking for investors and even applying for a government grant (provided there is one available, to begin with). Overall, the way in which you start off might determine the future course of your startup, which is why this is something you need to think through. Options are numerous and it is your job to choose the right one.

Colin Shaw

Colin Shaw

Colin has been in the finance market for over 20 years and specialises in best business practice to make an organisation profitable. The only man for the job when it comes to numbers and accounts with a keen talent for simplifying finance for the wider market.
Colin Shaw

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Written by Colin Shaw

Colin has been in the finance market for over 20 years and specialises in best business practice to make an organisation profitable. The only man for the job when it comes to numbers and accounts with a keen talent for simplifying finance for the wider market.