Just to make things abundantly clear, you don’t need a huge budget to find success in business.
One of my clients has spent less than £50 in the first month of starting their business and has already started making sales.
The money she’s spent so far has gone toward paid plugins, domain names, hosting and marketing and that has been plenty to launch her business to a point where it’s now turning a profit.
It might feel as though you don’t have enough to get started but this blog was made with a total monetary investment of £15.98— the cost of a domain name and one month of hosting with Digital Ocean.
Of course, brynsblog.com is a “small business” and won’t likely see the kind of investment you would expect a start-up to receive but that’s because most of this blog’s value is actually in the freelance work you guys have approached me with and the eBooks that I’m currently working on if they’re at all successful – which they may well not be.
When starting a business, it’s easy to overestimate how much money you’ll need in your first year and nothing short of dangerous to spend your savings or funds invested by friends and family on unnecessary shit.
I speak from experience when I say that the amount of pressure you feel directly correlates with the amount of money you initially invest into your business. This can be distracting at best and crippling at worst.
That’s not to say you should avoid investing in yourself altogether.
On the contrary.
But it’s essential that you keep track of your spending; only putting in the amount that you need to achieve the results that you want.
Your initial funds (capital) should, ideally, be broken down into four different pots.
The first pot is to spend now on what you need to get things going.
The second should only be dipped in when you are growing and is there to help you scale your business.
The third is there to cover unexpected expenses that you will undoubtedly run into.
And finally, a fourth pot should be set aside as a lifejacket, should you find yourself struggling to keep yourself afloat.
Be frugal but don’t skimp out on your business. Be sure to make investments within your company –especially marketing– but don’t waste money.
I know what it’s like, starting a business, you get carried away and forget to reinvest your earnings.
Keep your eyes on that North Star we spoke about earlier and try not to get distracted by your early successes/failures.