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Many businesses do not require a substantial amount of capital to start them off and it is possible to commence in business on a low budget. It is not as difficult as it might appear, irrespective of the type of business you are starting.

PLANNING

The first step in the commencement of a low budget business is planning. You will need to dedicate the time to draw up a business plan. This will give you a clear direction of what the business is, how you want to develop it and, most importantly, provide a cash flow and budget that will enable you to make the best use of the limited resources that you have available to fund it. Part of the intention of this plan will be to ensure that you do not spend all of the money that you have setting up the business, only to find that there is insufficient left for working capital to see you through the early months whilst the business is still growing.

LOW OR NO-COST OPTIONS

There are many areas of the business where you can reduce the costs. In certain cases, you could eliminate them altogether. Accommodation is a prime example. Dependent upon your business, it is often not necessary to take the step of leasing your own accommodation from day one. Shared office facilities are an equally viable option for accommodation. They have the advantage of requiring a shorter term commitment than a full lease, lower costs as main services will be shared and, in some cases, will also provide extra office facilities such as switchboard and secretarial services. A similar option could be available for an industrial business. Alternatively, you may find that local businesses have unused space that they will be prepared to rent to you at low cost.

It costs nothing but time to talk and this, in terms of promotion, is another area where a considerable amount of cost saving can be achieved. You can promote your business at relatively little costs by talking direct to potential customers, or by becoming involved with trade associations and attending business seminars, thus reducing the need for expensive advertising and promotion programmes. Direct contact is also advantageous in that there will be less wastage. For example, you will know with a few minutes whether the person you are talking to is interested in what you have to offer. Another aspect of low or zero cost promotion is publicity. Take note of what is happening in your local papers and get involved with issues that relate to your business, always making sure that the name of your business

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