A lot of new companies start up every year. However, most of these new start-ups don’t get to grow. This is likely evident in developing countries as economic and financial circumstances motivate most of the people to fend for themselves. Many companies start up but never grow due to some few reasons including mistrust among the heads of the company and an exaggerated annual financial budget.
Many start ups in the developed countries such as the United States of America fail also. “Over five hundred thousand new businesses started in the United States and there were over five hundred and forty thousand closures as well as fifty-five thousand bankruptcies in 2014,” noted Michael Evans of Forbes.
The question still remains, how do you start a business with less money.
Three things to consider when starting a business with less money
The business plan of a new start up is the blueprint for success and growth of the new business. This plan factors in marketing strategy, publicity campaign, and name and brand of the business.
1. Marketing Strategy
Your marketing strategy must be realistic. As a start up with very limited resources your goal is to do achieve more with the little you have. Your marketing strategy could solely be implemented using the Internet, as is the present norm. Avoid drawing huge campaign budgets with hopes of getting sponsorships from successful companies to support your “inflated” budget. Stick to the simple strategies, such as work of mouth from new clients to attract prospective buyers and social media.
2. Publicity Campaign
The same ideology applies to your publicity campaign. Having billboards advertisement and over the air advertisement will only put you in a negative threshold before you ever see your first profit. It is a good thing to make your “presence” known but do not over sell your business. The reason is because your customers and prospective customers will have a higher expectations and failure to meet those expectation will run your business into the ground from its onset.
3. The name and brand of the business.
The name of the company and the brand concept is imperative. This creates an identity and always projects what your business is about. The name of the company should be given much thought. It should be catchy, easy to remember and must be unique. For instance, a fashion designer starting his own name as the company name as it is mostly practiced in the fashion industries; Kenneth Cole, Calvin Klein and Miuccia Prada. Building the concept in this fast-paced technological world is very probable if you use social media. Everyone is online these days and you could reach your desired target audience right in their homes, workplaces, coffee shops, and bars and even at social gatherings.
There are other important factors to consider when starting a business with less money. The above points can be built upon to developed to an actionable plan that will help save you money and utilize your resources only when the time is appropriate.