Not everyone can afford to start their business with a loan. Here’s our advice on how to keep your costs down when you start up your start-up.
Keep Your Overheads Down
Keep those overheads low by saving on expensive office rent with City Virtual Hub. Your virtual office address means you can have the prestige of a registered office in London at the fraction of the cost – leaving you free to work from home or anywhere you like.
Save money by streamlining your services. Integrating services like phone, internet and voicemail can help to keep your overheads low. Holding off from investing in new tech at the earlier stages (be it a better printer or new CRM software) will also help keep costs down until you can afford to spend more.
Don’t Give Up The Day Job
We all share the vision of the day when you hand in your resignation letter, before walking off into the bright horizons your new business will bring. As tempting as that ideal may be, projecting that image one or even five years into the future might be best for your fledgling startup.
Even shifting to part-time work while starting up your company means you can at least cover your living expenses (and give yourself a wage) while setting aside money for your business. It also gives you security – your retirement and insurance plan will thank you later!
Invest Your Profits back into the Business
If you invest your profits back into your company rather than using your profits to pay your mortgage or even your expenses, the company will have much more room to grow quicker. Budgeting your profits for marketing, advertising and client sourcing will also make it easier to account for any profits not in the bank account balance come tax time.
Not all investment comes from a business loan. Seeking out investors could be a key way to inject the initial cash flow into your business. The only drawback of this is that while they may not be keeping tabs on what you spend their money on, they will expect to see a return on their investment – normally a percentage of your profit over a certain period of time.
Check out startups.co.uk for more advice on alternative ways of generating start-up capital: http://startups.co.uk/10-ways-to-fund-your-business-without-a-bank-loan/
How did you start your startup? Tweet us @CityVirtualHub or leave your comments below.