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is prominent in any comment you make. Similarly, you could offer to write a column for the paper on subjects related to your business. This could develop into a help panel, where you answer queries from members of the public. All this costs is time.

BORROWING

One of the mistakes that many people with limited budgets make when starting a new business is to take on significant amounts of borrowings to help them achieve their goals. There is often the mistaken view with many that the business needs to have everything new, including cars and equipment, when this is not necessarily the case. Second-hand vehicles that have been well maintained are as equal to the task of filling your transport needs as a new vehicle. What is more important is that they do not depreciate as much either; therefore, there is a better recouping of capital when sold.

Over borrowing can be dangerous unless the cash flow has been meticulously prepared and you are absolutely positive that sufficient income will be generated to cover the costs of repayment during that initial period when there is limited sales. Thus, it is important in the early stages of a business, where funds are low, to keep borrowings to an absolute minimum.

FINANCIAL ASSISTANCE

Financial assistance for a new low budget business may also be available from a few sources, and sometime by a means that does not require repayment. In the UK and other countries there are often grants offered by local and central governments for certain business opportunities. It is important to examine these opportunities and take advantage of them, as they will ease the financial burden during the initial stages of your business.

Another option is to get others to invest in your business. This could be family, friends or other business people. This will provide you with additional start-up funds. One benefit of this route is that these people will only invest if they see a future return on their capital, thus their involvement indicates that you have a worthwhile business venture.

As has been shown here, it is possible to commence a business with a low starting budget providing you research the options carefully. Many very successful business have flourished from a similar position.

Learn more about this author, Paul Lines.
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