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Before you turn to the
bank for a loan, think about creative ways to finance your
business without raising start up capital from external sources.
Here are 10 top tips:
1) Start small even if
you have a grand vision for your business, concentrate on
generating short-term revenue to get enough cash to fund the
long term business idea.
2) Focus on sales. Get on
the phone and start cold calling. Go for quick wins contracts
that bring in cash and will lead to other sales. Generating cash
flow is the immediate goal in order to start building your
business.
3) Dont waste money on
expensive advertising which can be hit and miss. Concentrate on
networking and building up contacts, as word of mouth is the
most effective form of promotion.
4) Keep overheads to a
minimum - work from home if you can and borrow or lease rather
than buy expensive equipment. Its easy to get carried away
resourcing a new business but only buy what you really need to
get the job done.
5) Open
a company bank account that offers free business banking for
start ups for at least the first 12 -18 months. Internet banking
makes it easier to keep a close eye on transactions.
6)
Utilise a 0% credit card for essential expenditure but be
careful to keep the debt under control and either pay it off or
transfer to another 0% card well before the interest rate goes
up.
7) Invoice your clients
in stages 50% at the half way point and 50% on completion.
Make sure you have clear payment terms in the contract and on
the invoice.
8) Retain cash in the
business take as little out yourself as possible. This might
mean going without a holiday or you may need to start your
business whilst still in part time employment to cover your
bills.
9) Try business bartering
offer your design services in exchange for goods and services
you need. This saves you spending cash and can be a good way to
develop relations with a new client base.
10) Put time into PR
think of an unusual hook and write a press release or article.
Conduct a survey about a topical or controversial issue with
your potential customers. Publish the results as a story to
attract free publicity for your business.
Many big businesses were
started using imagination and initiative rather than relying on
big start up funds. If you can start to bring in consistent
sales and keep your costs and overheads low, your business will
begin to look very healthy. Not only will you have proof that
your business is viable, you will be able to attract investors
to support your future growth.
Jo
Hill, Affinity Trading Network:
http://www.affinitytrading.com
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