10 Tips for a Startup Without Any Money Subtitle: The pros of being broke, but with a great idea10 Tips for a Startup Without Any Money Subtitle: The pros of being broke, but with a great idea https://c-suitenetwork.com/advisors/wp-content/themes/csadvisore/images/empty/thumbnail.jpg 150 150 MIchael and Bonnie Harvey https://secure.gravatar.com/avatar/dfe7dbddd973f4b41b9f0e9b47ad6323?s=96&d=mm&r=g
Yes, you need a bit of money to get started, but if you take advantage of a few of these suggestions, you can seriously reduce what you need. Each one of these worked for us.
- Start in your garage. Or in the guest bedroom, or even in your laundry room, like we did. Pick somewhere that doesn’t require a rent payment!
- Have your family help. Retired aunts, uncles, and grandparents would love the chance to make a difference in your life, and they could be thrilled to be a part of the “family business”. Who knows? They could end up being a lot more for your startup than just a pair of hands. They could also give you their objective opinion and insight. Bonnie’s mother thought up the term “Barefoot Bubbly”.
- Take advantage of someone else’s extra inventory. Think of a way to repurpose or sell unsold items. Once you do, you’ll find that sales will cure what ails you.
- Outsource everything—just not quality. When you outsource, you typically only pay when the product is produced—and produced to your specifications. Oversight is essential. The little money you do have is much better spent here than on a production facility.
- Utilize “Worthy Cause Marketing” to promote your goods or services. Search for the right nonprofit that echoes both your core values and your demographic—they will have a moral reason to buy your product if you support a worthy cause. Use your distribution channels to promote their cause, and in return, they’ll help you promote your products.
- Trade any goods and services you have for those that you need. Many startups usually prefer this option to spending money, especially in their early days. So find other startup businesses that you can trade with!
- Develop strategic partnerships with suppliers. Their business grows when you become a bigger customer. By extending your terms and offering discounts, they help you grow. The moment you know you won’t be able to pay on time, call them. Provide a workable payment plan to show that they can trust you.
- Offer discounts for large or cash purchases. This can put you way ahead of your bills. If your buyers put your products out at a discount and advertise, they’ll sell faster—and they’ll quickly recover warehouse space.
- Sell your product internationally. Most overseas sales are cash transactions based on a valid bill of lading through a letter of credit. It’s almost like an escrow account—you get paid once they take possession.
- Create just-in-time inventory. This refers to a product that’s created right in time for the sale, instead of sitting in a warehouse until it’s ready to move. You would ideally get the purchase order first. But if that isn’t practical, you can work with minimal inventory necessary to satisfy your customers, as long as you assume reasonable growth that can be reassessed every month.
These are just a few money-saving tips that Barefoot Wine relied on in order to survive and grow in our early days. Having less money forced us to think resourcefully—just one of the advantages that comes along with being broke with a great idea.