![]() One of the biggest ways to reduce your budget and your risk is to use social media, which essentially is free, to find our whether you have an attractive solution, before you invest your time and limited resources in creating the product or service. Another is the use of an ecommerce site, rather than retail, to facilitate product sales seven days a week, around the clock and around the world. Popular examples include monthly subscription fees and optional service fees, versus one-time product sales. ![]() Choose a business model to optimize your revenue flow and timing. Business terms are negotiable, but new entrepreneurs with plenty of cash don't bother to ask. For services, don't be afraid to ask for a retainer up front to offset your costs. Negotiate inventory management with suppliers and distributors.įor many products, suppliers or distributors will direct ship your product to eliminate your inventory. You may also be able to barter your services to offset theirs. If your solution has real value, future partners will jump on discounted future royalties, and many vendors and existing partners will understand your cash flow challenges. Ask for advance on royalties and vendor deferred payments. With a website, your business can look as big as any competitor.ĥ. Office space costs money up front, requires equipment, staffing and travel expenses. Remote startup team members are the norm today and can be very productive with smartphones, video and the high-speed Internet. Defer your urge to find office space until you have customers. Related: 8 Musts to Start Your Business With Little to No Capital 4. Most investors agree that too much money leads to poor spending decisions and lack of controls. Likewise, those who feel compelled to keep up with the popular media will spend most of their time courting investors. Build a plan around your budget, rather than around your wishes.Įntrepreneurs who start without a plan spend more money. Equity is your best assurance of commitment and focus. Managing employees and contracts is difficult and expensive, and new entrepreneurs aren't very good at it anyway. People working with you need to understand their failure means startup failure, rather than expect money up front. Find team members to work for equity rather than cash. ![]()
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