Talk to any banker and he will tell you that the lifeblood of a business is its cash flow. Banks measure the success of a business by their cash flow as well as how dependable; how large, and, how timely their receivables are. Face it, from the day you open your doors, you are in debt; you've got overhead. Too many business owners fail because they try to provide their product or service; while trying to fund their business. No matter how good your product or service is, your business won't be around long if you can't pay the bills. And, you need your mind focused on productivity.

What should a poor, new, yet excited business owner do? Should he (or she) not go into business until they are "rolling in dough"? I don't think that is the answer. If you really have a burning desire to be in business, and, you have an idea or marketing strategy you believe in, then I say "Go for it!: but think!

You have to have a budget, and, you have to have a plan. You have to know what it is going to cost you each month to stay in business. "Those who have no goal will reach it every time." is a clever saying about people who fail to have budgets and plans. You have to be able to answer the "How questions" "How much of my product or service do I have to sell to meet my business overhead?" "How will I obtain business?" "How will I pay my bills?" "How will I survive if things don't go as planned?"

There are some tactical efforts you can initiate which have helped me with the businesses I've started.

First, identify your market. With Real Estate the catch phrase is "Location, location, location". With General Business the catch phrase is "Who, who, who?" Once in business you can't fumble around trying to find out that wants and needs your product; you have to go straight to the group of people who are going to support you, and, begin to win them over; to get your market share. That is a tough thing to do if you don't know who your market is.

Next, what will your marketing strategy be? A great "test" here is to see how you feel about calling on people face-to-face. If you are hesitant you may not have the belief in your business you need. You may not have the required passion to get over the roadblocks. Are you going to use direct mail? Telemarketing? Commissioned salespeople? Or, are you going to have a storefront? Each has its pros and cons. Also, each has a cash flow factor.

One great idea I have always utilized is the media. Newspapers

• 1
• 2
• next page >>

---

Add your voice

Know something about How to start a business on a low budget?
We want to hear your view. Write now!