Starting a new business is never easy, but doing so on a shoestring budget is an even bigger challenge. That said, the good news is that you are not alone. It’s safe to say that most new small businesses begin without the ideal amount of funding or resources.
And if they did it, so can you.
Indeed, with the right strategies and savvy effort, you can stretch your dollars and resources and get your business off the ground. Here’s how.
Be strategic with your spending
Even a bootstrapped new business needs some funding. While many businesses can be started for under $1,000, others may cost more. Either way, some dough will be needed. Most bootstrappers use their own money (indeed, 70% do). Others may receive help from family and friends, use credit cards, or sell assets to raise capital. Bootstrapping is a matter of being resourceful and creative.
When every dollar counts, it’s vital to be smart about where and how you spend your money. Rule No. 1: Never spend any more than necessary.
For instance:
Why a Business Credit Card Could Transform Your Small Business
These business credit cards that offer a convenient and efficient way to separate personal and business expenses, simplifying accounting and tax reporting.
Additionally, business cards can provide valuable perks such as rewards points, cashback, and expense tracking tools, enhancing financial management and the potential to help save money in the long run.
Ink Business Unlimited® Credit Card |
Earn $900 bonus cash back Earn $900 bonus cash back after you spend $6,000 on purchases in the first 3 months from account opening. |
Earn unlimited 1.5% cash back on every purchase Earn unlimited 1.5% cash back on every purchase made for your business |
Purchases: 0% Intro APR on Purchases, 12 months Balance Transfers: N/A
Regular: |
|
Ink Business Cash® Credit Card |
Earn up to $750 bonus cash back Earn $350 when you spend $3,000 on purchases in the first three months and an additional $400 when you spend $6,000 on purchases in the first six months after account opening. |
Earn 5% cash back in select business categories Earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable and phone services each account anniversary year. Earn 2% cash back on the first $25,000 spent in combined purchases at gas stations and restaurants each account anniversary year. Earn 1% cash back on all other card purchases with no limit to the amount you can earn. |
Purchases: 0% Intro APR on Purchases, 12 months Balance Transfers: N/A
Regular: |
- Instead of renting office space, work from home or find a local co-working space like WeWork.
- If you need equipment, buy used or refurbished items.
- Gently used office furniture, computers, and other essentials can be found on Craigslist or Facebook Marketplace.
Bartering is another smart way to save money. When I was a young lawyer with my first office, I bartered for a year with a contractor who needed legal help. My house looked great after his case was over. Bartering allows you to get what you need without spending cash.
Get creative with your marketing
Let’s get real: No one — save for you, your family, and a few friends — will know about your new business. That’s where marketing comes in. You’ll need to market your new business…then market it some more…and then market it some more.
But how do you do that with a low budget?
Happily, in this digital age, marketing does not have to break the bank. Social media platforms are a fantastic way to reach your audience without spending a dime. The key is to focus on those platforms where your target customers spend the most time, not the ones you like best. Engage with your audience by posting valuable content, responding to comments, and even hosting live Q&A sessions.
Do not underestimate the power of word-of-mouth marketing; it is the most powerful type of marketing. Encourage satisfied customers to share their experiences. You can incentivize them with discounts, free products, or special offers. And even better, get them to share about your business online — on Yelp, Facebook, and all the rest.
Finally, content marketing is another cost-effective way to build your brand. Start a blog, create how-to videos, do TikToks, or offer free webinars on topics related to your business. By providing valuable content, you not only attract potential customers but you also establish yourself as an expert in your field.
Leverage free and low-cost options
Plenty of free and low-cost tools and resources are available to help you run your business efficiently:
- SCORE is a federally funded non-profit that offers free, confidential business coaching and mentoring at SCORE.org.
- The Small Business Association has tons of free info and resources on its site, SBA.gov.
- For project management, consider using tools which offer free plans.
- For communications, platforms like Slack or Zoom provide free versions.
- For accounting and invoicing, look into free or cheap options for popular accounting software.
Build a supportive network
Finally, bootstrapping works best when you have a supportive team around you. Connect with other entrepreneurs, join local business groups, or participate in online communities like Facebook groups. Surrounding yourself with like-minded entrepreneurs can provide support, advice, and even collaboration opportunities.
Seen in the right light, bootstrapping a business can be exciting and fun. But yes, it requires creativity, resourcefulness, and a willingness to hustle.
You got this!
