START A BUSINESS WITHOUT SAVINGS
Want to go it alone, but worried you don’t have enough money? Don’t give up – it can still be done, as these entrepreneurs explain…
Almost half a million new businesses were registered in the UK last year, but many would-be entrepreneurs put off starting something new because they worry they don’t have the cash. In fact, a recent study found that a third of women believed they lacked the funds to make their dreams a reality, and only 18 per cent would consider trying, as opposed to 29 per cent of men. Calli Louis and her twin sister Nichola Johnson-Marshall are founders of Working Wonder [WorkingWonder.co.uk], a career coaching and training consultancy that they set up with no financial backing. Here’s their advice...
DO YOUR SUMS
Figuring out what’s actually needed money-wise is often a missed first step, according to Calli. “Start by working out how much money you can survive on and figure out how you can hit that number,” she says. “Don’t be afraid to take a part-time job or to stay in an existing role and start the business on the side. Perhaps you could borrow money from friends or family to get the ball rolling?” Then, think practically about what’s needed for the business to run. “Do you need an accountant, tools and technology, or can those things come later? Think about what you urgently need and when you’ll need it in order to make an informed decision about whether that can realistically happen.”
RESEARCH FUNDING
“If you need finances to set up your business, there are many routes aside from a bank loan,” says Calli. “The Start Up Loan Scheme [startuploans. co.uk] is a government-backed personal loan available to those looking to start or grow a business. Alternatively, many small businesses are turning to Crowdfunding, where anyone can make financial contributions. You can easily set this up online via platforms such as GoFundMe, or specific small business platforms such as CrowdCube and Seedrs.”
MAKE SOME NOISE!
If you’re planning to set up your own business, social media is your friend. “It may feel scary putting yourself out there, but people will buy from people they like, and it’s free to create your own social media channel,” says Calli. “Choose one platform that works for you and your business – don’t overwhelm yourself by trying to be on all of them. Using social media is incredibly costeffective, since all you need to invest is your time and ideas.” Don’t rush into paid-for ads if you’re on a shoestring budget; instead, build a community and generate a buzz. “Introduce yourself and others who are involved using honest, positive words and natural photos. Use stories, polls and questions as you develop new products and services. Follow similar businesses – both locally and in the same industry – and promote them via your page, then don’t be afraid to ask if they will repay the favour.”
SWAP SKILLS
Think about your skills and how much people would pay for those – the likelihood is plenty of others are in the same boat. “Many people are put off setting up a business because they’re worried about paying for various products and services,” says Calli. “Think about what you can offer to others in exchange for them helping you, and what you have in your arsenal to get there. For example, I recently offered my marketing expertise in exchange for architectural advice for a house project. Try sites like SkillBound.com or TimeBanking.org.”
BUILD A COMMUNITY
Utilise your network by making it easy for anybody to lend a hand, says Calli. “When approaching people for help, be clear on what you need and have transparent conversations about what’s involved. Don’t be afraid to reach out to people you don’t know – or to wellknown, successful people you admire – to offer your services in exchange for exposure in the early stages, or even to just get feedback. Creating a network that will support you later down the line doesn’t cost anything, but offers huge value.”
INVEST IF YOU NEED TO
Be sure to invest where necessary, Calli flags. “Think about what skills you don’t have that you need to invest in – be it in another person, tools or a system. For example, it often pays to have an expert support you with finances, as it’s a specialist skill and tax returns have to be done. Build those costs into your budget – they could save you money in the long-term.”
By Sophie Goddard