Start Up Smart with these 5 Tips for Creating a Business on a Shoestring

Starting your own business is an essential part of the American dream for many people.  But, it can be a tough mountain to climb.  Not only do you need to have the courage to actually branch out on your own, and possibly fail, you also need money and resources to get going.  You’ll never get rid of all the risks involved with starting your own business, but you can be smart about how you do it to minimize your downside.

Here are 5 strategies you can use to start up smartly:

1. Build a “board”: Your “board” doesn’t have to be formal, it’s just about having a strong group of people you trust that can help you on your journey. These might be successful business owners, corporate leaders or anybody else that can give you an outside perspective on your business.  It’s easy to get so caught up in the details that you miss some of the bigger trends. Your board can help guide you past potential failures or suggest a change in strategy as your business grows.

2. Look to the masses: Crowdfunding is growing in popularity and gives aspiring business owners another way to fund their dreams. Investors are out there and you can reach beyond your personal network to find them through sites like IndieGoGo and Kickstarter.  There’s a lot of competition though, so make your pitch compelling and clearly outline what investors should expect, and when. 

3. Make the most of your existing assets: Your home computer and your smartphone will work just fine for your business, too. Work from home until you have the need, and money, to rent a space.  Take advantage of low cost web design and copy writing services available online. Saving money wherever you can will free up funds to spend on more important things that will help grow your business.

4. Spread brand awareness through philanthropy: You can generate some exposure for your brand, and your products or services, by thinking of others.  Donating your business’ services to a nonprofit organization can be a good way to generate awareness, get feedback from the public and create goodwill while you’re working to generate real, paying customers.

5. Don’t quit your day job: Keep your job as long as you can while you build your business in your free time, nights and weekends. This will give you the security to take risks with your new business. A new business usually takes time to gain traction, and maintaining a steady income while you build steady revenue will keep your stress levels down – just make sure you have the energy to do both at once.