How To Start & Grow Your Business With Little Money

The following succinct tips and suggestions will enable your endeavors to launch and grow a new business:

·         Cash flow is most important as it’s your oxygen. If it stops flowing for more than a brief period of time you’re dead. Obviously you must focus on cash flow. Your profit, market share, or anything else is secondary. One key to success — be very realistic when projecting your revenues.

·         Barter should play a role in your company’s operational efforts. Methodical planning and execution of your trading efforts will generate additional cash flow, as barter purchases are made for needed products and services.

·         Postpone any and every purchase by sharing /bartering office space, supplies and equipment. The more time you have before making a purchase the more time to ascertain what the best deal is, as well as clarifying your needs. (And remember, technology purchases tend to drop over time.)

·         Use credit for (as) cash, not capital expenditures. Borrow money only to manage short-term gaps in cash flow. Don’t borrow money for large expenditures. You may have to personally guarantee those loans, which is how entrepreneurs end up in personal bankruptcy rather than just closing the business and moving on.

·         Sell direct and focus on building close relationships. Manage your growth, make your customers your top priority. (Happy customers can be your most effective advertising.) And don’t sell or promise what you can’t deliver. Additionally, focus on establishing relationships to support your growth before you need them.

·         Remember what business you’re in, you’re not in the business of lending money — so don’t. Get a payment, even a partial, upfront whenever possible. Make it your policy and be clear about it upfront payments.

·         Be prudent, don’t gamble what you can’t afford to lose. Betting the entire company on one opportunity is gambling.

·         Don’t hire any paid employees until profits enable you to pay them. Consider finding people who will work for equity or at least a deferred salary.