by Matt Mahan

Created on: July 05, 2008

Starting your own business is an exciting decision. You are taking full responsibility for your future. Your drive, determination, passion and experience all tell you that you can succeed even though most businesses fail quickly. You have everything you need to start, the perfect location, business plan, ideas for products sold or services provided, but there is one problem. You do not have a lot of startup funds. You have taken your business plan to the bank and applied for a loan but they have rejected you, as most banks do. What do you do then? How can you start your own business on your low budget? Here are some tips on how to start your business with a lack of start up funds. We will use a small "Mom and Pop" style pizza / sub shop as an example.

Location
Depending on your location you can get your business going with less than $5000 start up if you do some research and be a little creative. The building you need should ideally have the equipment, at least basic, to get you going. Coolers, slicer, cash register and such. You are not going to be able to buy the building outright on such a low budget, so renting or leasing is your only option. Renting or leasing is much like throwing your money out the window in many aspects, but sometimes it is a necessary evil. Talking to the building owner, make sure you have a "right of first buy" in the lease. Sign the year lease to get started, figure this first lease to be a trial period. If your business fails, or you find that entrepreneurship is not for you, you can get out after a year.

Supplies
Your supplies for your product may come a little harder on your low budget. Search your area for smaller suppliers, other family owned companies are going to charge you a little more, but they are going to allow you much better terms and smaller minimum deliveries. They remember what it was like to start and are much more willing to be helpful with ideas and tips towards the small business success.

Equipment
To be a in the pizza and sub business, you need a ton of expensive equipment. Let's say that the building was a corner store before you opened it. It has the basics, reach-in coolers, cash register, a deli counter, deli cooler and slicer. You price out a pizza oven, deep fryer (because nothing goes better with pizza than wings), and more coolers and find that it is way beyond your budget. What to do then? Your going to have to put your future equipment buys on hold until you raise some capital. Prioritize your future upgrades

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