Ideas for Marketing and Starting a Business on Shoestring Budget

Starting a business can be a very expensive venture.  Many new businesses fail because they do not have the funds to keep the business going.  If you do not have financial backing and have little money to invest, starting a business on a shoestring budget is probably your best option.  Although it is difficult, it is not impossible to start a business with little or no out of pocket expenses.  Learn some tips on starting a business on a shoestring business.

Choose Your Business Wisely

  • Operating on a small budget means that you need to be very detailed and choosy how and when you spend any money.  You probably do not want to get a loan or other financing as that will create more debt when you already have a low amount of cash flow to work with at the moment.  If possible, try to avoid borrowing money to start up your business.
  • What type of business do you want?  Consider all the types of hobbies or interests that you have and see if any of them can be incorporated into a business without much cost to start.
  • Choose a business that you can use inventory that you already have in your possession.  For example, if you want to start a sewing company, and then make sure that you already have sewing machines and other equipment so that you will not have to invest in new equipment.
  • Research your market to make sure there is enough of a demand for the business you would like to startup.  If there isn’t much demand, then you might want to consider another type of business so that it is easier to make a profit and grow your business.

Marketing on Shoestring

  • Marking usually give more expenses to any new or startup business. If you are planning to do marketing on Shoestring budget, I can suggest some of the cost effective way to market your venture
    • Have your own website, do the online marketing.
      • Google AdWords is most effective way of putting ads online.
      • You can do online banner ads
      • You can also take help of Email advertising.
      • Best idea is to directly consult with local online marketing agency or company.
      • On a website, you can have your own blog, this help you give regular updates to your niche’s buyers.
  • Do SMS (Mobile Text Message) Marketing
  • You can also take help of SMS (short messenger service) to send periodic updates about your services and products to your customer.
  • Nowadays Social Media Marketing (SMO) is also one way to advertise your services. It is basically like putting your ads on Facebook, Twitter and other similar websites. You can find any SMO agency in your area, just contact them directly.

Use Your Own Abilities; Do Not Outsource

  • Hiring others to do something that you can do or can at least learn to do will cost you what little funds you have available.
  • If you know how to create a professional website then do so yourself instead of spending hundreds of dollars paying someone else to do so.  If you do not know how to design websites, go to a library or do research on the Internet to learn how.  It may take you some time, but it’s free and will save you a lot of money.  An added bonus is that you will be able to update and upgrade your site as needed without paying someone else to do it for you.

Useful Tips for Starting Business on Shoestring

  • Try to make your business look professional.  In other words, you don’t want to let your customers know that you are a one-person company working out of your basement or garage.
  • Instead of filing as a corporation, which is much more expensive, get your business license as a proprietorship.
  • Do not spend all of your earnings right away.  Always put some aside for marketing, upgrades and so forth.
  • If you are buying and selling products, make sure that you keep a low inventory of things that sell well.  It won’t do you any good to purchase a lot of items that move too slowly so that you have inventory you’ve paid for that isn’t earning you any income.

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