The answer to this question is not always easy, since for a manufacturing business it may be necessary for you to borrow, if that is the case you need to see an accountant you can trust, to help you to get the best deal and talk about the implications, like personal guarantees, liabilities and so on.
If however, you are in the service sector you should try and stay away from borrowing money as long as you can and bootstrap. Here are some things you can do:
- Work from Home, do not get an office.
- Work part-time in your business, keep your job until the business starts earning money on a regular basis to support you.
- Start with sales, it gets you money and you can find out if someone wants to buy your product. If someone put up the money to buy your product or at least sign an order, that is a good sign. Don’t trust praise, most people don’t want to hurt your feelings.
- Do some business planning, and see when your business would break even, get the tools free, so no excuses.
- Outsource all non-core business processes from day one, don’t hire someone just to answer your phone, find Virtual Assistants to do that and other admin stuff, they know how to do it and that makes you look good.
Have a look at some of my categories, like bootstrap, How to grow your business, and others to get some more ideas. ST.
Disclaimer: As with any of my readers questions, I do not have all the answers and this is not business advice, since I only know very little about your business. If any of you can add anything here do so for the benefit of my reader, who asked the question and everybody else, leave a comment below – I thank you for your effort.
