Are you planning to open a business that does not require a large amount of money? If your budget is limited, then here are some great ideas to look at to ensure that your money is channelized in the right way and not spilled in schemes that do not provide a decent return on your investments.
- Research , Research and Research – Research your market, do adequate research before you even think of having a business plan. You may have a great idea. However, would the customers be ready for your idea? A thorough research would show both the market potential, as well as the limitations of the idea.
- Base your Assumptions on objective analysis – Often, companies are misled by incorrect interpretations of the market and therefore, they rely on half-truths, or false assumptions. Any business needs to be objectively analyzed based on what could be the opportunities and threats to the business, the possible dependencies and a correct estimate is to be built. Buffers for unaccounted risks are to be considered as well as mitigation strategies for enterprise risks are to be planned.
- Keep a control on expenses – Keep expenses low, be frugal in your spending, till assured of appropriate returns. For a startup, it is important to consider ways that keep the budget low. Adequate cost control measures are to be taken right from day one of business.
- Develop a team as you grow business – Do not keep every thing with yourself , even if you are a start-up. Time is crucial, and therefore take help of others, who could deliver work faster and cheaper.
- Maintain a financial buffer- Always have a financial buffer which could help in case of emergencies. Ideally, have a contingency fund of about 6 to 8 months to take care in case of emergencies. Else, have an alternate source of regular income to meet any eventuality that may precipitate.