Around 600,000 new companies are registered in the UK every year, with 20% failing before the year ends. It is important to have a well-thought-out plan in place to be a part of the 80% of new businesses which do succeed! Whether or not you have money in the bank, it is more than possible to start a business and we’ll tell you 10 ways you can do this on a budget.
1. Start small
Before committing to anything long-term or receiving a loan, it is important to start out small with friends and family. You can start by asking them for advice and feedback, as well as using word-of-mouth to get them to share your product on social media. This is a way to obtain free advertisement for your business and therefore allows you to gradually build hype around your services without spending any money.
2. Find the right marketplace for you
There are many online marketplaces out there for you to sell your products on but which one you use may vary depending on the product you are selling. Etsy is a great platform for handcrafted items, Depop is great for clothing items and eBay is great for pretty much any items. As well as this, you can also use Instagram to market and sell your products which is a completely free platform.
3. Get funding through small business loans and grants
A small business loan is money that you will have to pay back within an agreed timescale, in comparison to a grant which you will not be expected to pay back. Examples of Government grants on offer are Innovate UK, who aim to “develop and realise the potential of new ideas, including those from the UK’s world-class research base”. As well as this, grants have been set up by The Prince’s Trust for young people aged 18 to 30, who, last year, set up a £5 million Enterprise Relief Fund to help young people start their own businesses during COVID-19, as well as offering training. There are also 38 regional growth hubs which have been set up by the Local Enterprise Partnership Network which was created to help business owners find support.
4. Get funding through crowdfunding
Crowdfunding allows you to ask many people for small amounts of money typically via internet platforms. Crowdcube, Kickstarter, Indiegogo and GoFundMe are all great platforms that allow you to fund money for your project. It is best to do research into all of the ones that are out there (as there’s loads!) in order to decide which is best for your specific business.
5. Sell unwanted items
To help kickstart your business without having money it could be useful to sell any unwanted items you have. If you have an old computer lying about, clothes that are not being worn, or a console that never really gets used, you could try and sell these items and then use this money to reinvest back into getting your business up and running.
6. Make it a side hustle
If you are currently in employment but wanting to start a business an important piece of advice would be to not give up your job until your business enables you to keep up with your existing financial commitments. Having your business as a side hustle means you can work on your business in your spare time, whilst being able to save some money on the side from your full-time job.
7. Be realistic – write a business plan
Setting realistic goals and targets by writing a business plan will mean you are more likely to stay on track. The Prince’s Trust offer free templates to help do this on their website – https://www.princes-trust.org.uk/help-for-young-people/tools-resources/business-tools/business-plans.
8. Blogging
Informing your audience through blogging is a free way to advertise your brand and increase revenue. Services such as WordPress and Wix allow you to start a blog for free and then this can be used to create a myriad of content for your services.
Once you get the hang of creating content you can use Google AdSense which means every time someone clicks on an ad that appears on your blog you will receive a bit of money. The key to a successful blog is to be consistent, be yourself and make sure your blog is well-researched!
9. Prepare for the unexpected
All businesses go through rough patches from time to time therefore it is important to prepare for the unexpected. When you are planning to start your business, it is important to factor this into your budgeting, as well as considering if business insurance is something you want to eventually invest some money into once you can save a little bit of money!
10. Go digital
As well as making money, it is also important to cut unnecessary costs. There are many online websites and apps out there that allow you to join for free and save a lot of money, whilst helping you get ahead! Social media is an example of how the digital world has allowed many people start up a business that would have otherwise been unable to, and therefore opened many doors for people with different backgrounds.
Written by Millie Bateman
If you have a business registered under 42 months within the Liverpool City Region – Enterprise Hub can support you! get in touch on enterprisehub@thewo.org.uk
