Think you can’t afford to start a business? Let these tips from Oasis Consulting Group change your mind.
More than half of small businesses launched during the pandemic started with less than $10,000 in funding. These entrepreneurs didn’t apply for bank loans or woo investors to fund their startups. Instead, the vast majority relied on personal funds and family and friends to get their businesses up and running.
How can so many businesses launch with such small budgets?
When it comes to the who, what, and how much of running a business, small businesses are keeping it simple.
- Instead of trying to do it all, businesses are increasingly capitalizing on niche markets. Specialization reduces direct competition, streamlines business operations, and allows for a focused marketing strategy.
- Many small business owners start as solopreneurs. Owner-operator businesses avoid the costs and red tape associated with hiring employees by outsourcing business services to freelancers and agencies.
- When they do hire, small businesses think lean. In addition to hiring the right people, they use cross-functional training to maximize employee value and create a culture of teamwork and trust.
- Entities with pass-through taxation are popular among very small businesses due to streamlined tax filing and reduced administrative burden. LLC profits “pass-through” to members’ personal tax returns in place of entity-level taxation.
Commercial office space, expensive business equipment, and on-premises software take a big bite out of startup budgets, but what if you could build a business without them?
- Digital-first businesses use digital infrastructure to deliver goods and services, build relationships, and manage operations rather than relying on physical touchpoints and offline interactions.
- Software-as-a-service is a key tool for digital-first businesses. SaaS applications are accessed over the internet so companies can operate from anywhere. SaaS is also more cost-effective thanks to flexible user-based pricing models.
- Managing a team remotely has its challenges, but startups can overcome them by onboarding new hires, establishing communication guidelines, and supplying employees with equipment to work effectively from home.
- Businesses can save money here too. For example, while some executive office chairs cost upwards of $1,000, you can find adjustable ergonomic chairs for under $200. Know which features matter to avoid overpaying for name brands and gimmicks.
Starting a business on a small budget isn’t just about cutting costs. Entrepreneurs need a strategy to leverage existing resources for long-term business sustainability and growth.
- Successful entrepreneurs look beyond passion to find business ideas with high demand and room for innovation. Even in times of economic uncertainty, there are opportunities to be found.
- No matter how small a business, business planning is a critical step in the start-up process. Business planning helps entrepreneurs identify opportunities, evaluate risks, and set strategic goals for their business.
- A business plan also dives deep into financials including essential startup costs, fixed and variable expenses, and revenue projections. Small deficits are normal in early startup stages, but significant shortfalls may be cause to revisit the business plan.
You don’t need a massive budget to launch a successful small business, but you do need a strong business plan. Let Oasis Consulting Group help with business analysis and development services that can turn your startup idea into a profitable business venture. Contact Oasis Consulting Group today to schedule an initial consultation and discover the solution to your startup needs.