Launching your first business can be a fun and exciting venture. Not only do you get to practically enter any industry you want but possibly make a big impact on it. Who knows? You may even change the world. Although a lot of people assume what’s holding them back is the price, starting a business doesn’t have to be expensive; which is why I’m going to show you how to start a business on a budget below.
Know Your Costs
If you’re going to be starting a business, then knowing how much you’re going to have to invest in it will be crucial. Depending on the type of company you’re trying to launch, the cost of this can vary tremendously. For example, as noted by the MBDA, the estimated cost for your average business is around $30,000, which is a pretty significant figure considering what goes into that price tag. However, that doesn’t necessarily mean your efforts will cost nearly as much, especially if you know how to go about this thing head on.
To begin, map out all the costs that are going to be associated with your business, no matter how big or small. Furthermore, it’s also important now to decipher how much you’re going to need to live off of, as well as how you can reduce that runway starting out. A good rule of thumb with your budget is to give yourself a conservative estimate that protects your foundation rather than the stressful position of having to catch up. Take your time in developing your budget, as this is going to be the foundational bedrock to your future success.
Research. Research. Research.
Once you’ve got a good grasp on your budget, the next step is going to be researching how you can tackle the market. While you most likely have a rough idea of where your market stands based on your interactions with it, actually coming up with a plan on how to go to market is an entirely different ball game. After all, as noted by Entrepreneur, with 82 percent of businesses failing due to cash flow problems, it’s imperative you know how you’ll make money from day one rather than merely relying on guesswork.
Take a look at not only your current demographic but how you plan on approaching new avenues as well. This includes reading things like ebooks and paying attention to other marketing materials, honing in on what could help you grow. The name of the game here is to be calculated, speaking in terms of what KPI and ROI you’re after, as well as getting those numbers up over time. Because although there is a particular realm of trial and error you’re allowed, it’s also a very limited window, and one you want to be prepared for sooner rather than later.
Define Your Place In The Market
As you’ve started to cultivate what type of audience you’re after, we now need to figure out what separates you from the competition in reaching them. This is perhaps one of the hardest hurdles for a lot of new businesses to figure out, but one that could potentially make or break you. In short, the practice we’re aiming for is defining your niche, which can be a little bit more of a challenge than you might assume.
Your niche is essentially the product differential you have over your competition. Whether you’re looking to scale an app internationally or be the only place in your city that serves pizza by the slice, it’s important to not only know where you stand amongst the competition but how you can stand out. This will be especially useful in things like SEO, which as noted by Search Engine Journal, with 93 percent of online experiences beginning with search, owning that keyword term “(city)+pizza+by+the+slice” or whatever niche you have could be huge. However, this comes with taking the time to hash out what makes you different and why.
Keep Your Outreach Consistent
Finally, as you near closer to launch, it’s important to establish patterns that you can adapt to consistently. As noted by Zimmer Communications, consistent presentation of a brand increases revenue by 23 percent, which is a pretty staggering figure if you know how to capitalize on it. And although you might be thinking this is simply posting consistently online, there’s a certain science in how to be effective.
Create a marketing mix for your business, including items like social media, email marketing, SEO, and any other mediums you consider essential for your industry. Additionally, it’s a smart move to create a calendar to know when you should hit these aspects, honing in on testing when you’re most effective. Granted, this will take a little bit of time to figure out, but once you do, you’ll be generating an audience for your business in no time.
How are you planning to operate your business on a tight budget?