So, you’ve got a great business idea, but you don’t have a lot of free money to invest in a startup. Every day, thousands of entrepreneurs find themselves in this exact same predicament. How can you hope to start a small business with limited capital? Though it may seem like an uphill battle, becoming a successful entrepreneur doesn’t mean you need to have unlimited funds. In fact, you can open a business in Canada and start making money with virtually no starting money! Read on to see the steps you should take to ensure success!
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Consider a Business Loan
When you really need starting funds for your business and you don’t have them on hand, you only have a few options. You can work and save up enough money to start the business at a later date, or you can borrow the money to start the business now and pay it back over time. Naturally, the latter method requires you to take on a certain degree of risk. If you’re business flops, you will still be expected to pay back the loan in full.
Fortunately, most of the Canadian’s business loans are right at your fingertips. When searching for a business loan, it’s always important to look for loans with low APR. You should also have an idea of how much time you’ll need to pay it back so that you can choose a loan that fits your specific needs and circumstances.
Keep Overhead Low
If Steve Jobs could start Apple in his grandmother’s garage, you can get your business up and running without breaking the bank. Plenty of entrepreneurs think that they need to surround themselves with signifiers of “business” to be taken seriously. This is a huge mistake, especially if you’re low on funds. So, instead of renting out a swanky office space or hiring a dozen employees right from the start, take things slow and just focus on the bare essentials.
With most startups, you can begin working from home or just about anywhere with an internet connection. So, if you have a computer, tablet, or mobile device, you might already have enough to start your own small business! The key is to make sure you’re not spending money on any non-essentials. If you are, you could find yourself struggling to maintain the costs of your business from day one.
Collect Revenue Quickly
Some business models take time to start making revenue, while others can turn a profit on day one. Though your business may not fall in the latter category, you should find a way to start collecting revenue as soon as possible. If you’re starting with little or no capital, you’ll want to start making money quickly so that you can pay the bills and hopefully reinvest some of it in your business.
For example, let’s say that you are launching a digital marketing firm. After reaching out to a number of prospective businesses, you finally land your first client. Though you shouldn’t ruin the relationship by demanding money immediately, you should make sure to invoice the client within a reasonable amount of time so that you can start cashing those checks!
Have a Clear Vision
The sad truth is that most small businesses fail. This shouldn’t discourage you from starting your own, but it should give you a reason to develop a clear, concise vision for your business. Once you know where you want to go, you can begin to figure out how to get there.
Having a clear vision for your business isn’t just about conceiving of a goal. It’s also about putting pen to paper and creating a business plan. With a business plan, you can clearly articulate what your business does, how it operates, how much it costs to run, as well as its potential revenue. Once you have your business plan in place, you can launch your business with confidence — even if you don’t have a lot of cash on hand!
