Interested in starting your own business but hesitant to take out a huge business loan? While it can be difficult to start a company with little capital, it is absolutely possible. In some ways, it can even be less risky and less complicated.
Here are some ways to build up your company from scratch:
1) Keep Working Another Job – If you’re not getting instant cash by taking out a business loan, your startup capital will have to come from your savings. Set money aside, separately from other savings, in amounts that you won’t miss on a daily basis. Your savings will only grow if you don’t draw on it for living expenses or other necessities.
When you’re ready to start your business, it could benefit you to keep your job at the outset, as keeping your salary while you’re starting up can take a lot of the pressure off of your first few months, or years, in business. And the benefits don’t end at your salary—your health insurance, retirement plan, and sick/vacation days are all things that you’ll have to pay for on your own when you’re self-employed.
2) Reinvest Your Profits Back Into Your Business – Using your profits to pay for living expenses or to pay down other debts will limit how fast your company can grow. You’ll maintain your highest level of working capital if you reinvest your profits back into your business. Whether you invest in new products, technology, or employees, your goal is to grow your business by attracting new and more customers. You can also choose to invest in marketing or advertising to grow your customer base.
Interested in starting your own business but hesitant to take out a huge business loan? While it can be difficult to start a company with little capital, it is absolutely possible. In some ways, it can even be less risky and less complicated.