Scott Crockett, Everest Business Funding’s CEO, Suggests 5 Great Ways You Can Build a Small Business with Little to No Capital
Companies can’t exist without money. It’s at the heart of every business, big and small.
Fortunately, would-be business owners can make do with very little capital. It may seem like an impossibility, but it’s possible with the right strategy.
In this article, Scott Crockett, CEO of Everest Business Funding, outlines five great ways to either raise funds or lower costs so you can afford to fund your small business.
#1. Ask Family and Friends to Be Investors
No matter how small, all businesses will need at least a little capital to get off the ground. The first option should be to use whatever extra money you have set aside to fund your venture. If you’re still falling short of needed money, though, you can turn to family and friends for help.
Those closest to you are the likeliest to want to see you succeed and help you do so if they can. You can raise funds for your start-up by asking your family and friends to be investors in your business. Depending on the agreement, the funds they provide you upfront may turn into equity for them in your company.
#2. Search for Grants
Unlike loans, grants aren’t readily available for every small business in every industry. However, there are some out there if you search in the right places.
Some of these grants will be sponsored by the federal or state government. Others will be more locally-based and private in nature. Once your small business is off the ground, see if any grants could provide you free cash to help.
#3. Spread the Word for Free
Once you have launched your business, it’s essential to get the word out to gain customers. You may be tempted to spend money to run advertisements or an in-depth marketing plan.
Scott Crockett advises starting small, though, and taking full advantage of all the free marketing options available today.
Social media platforms are the obvious first choice. Set up pages for your business on all the applicable platforms, and start posting outreach messages. Ask your friends, family, and connections to share your page so that others can see it, too. Social media is so powerful, and almost everything is completely free to use.
#4. Avoid All Expenses You Can
When you start your business, you may be tempted to go out and spend money on fancy business cards, office supplies, or even an office itself. One of the most effective ways to build a small business with little money, though, is to avoid as many unnecessary expenses as possible.
When you’re getting your business off the ground, proceed with just the bare minimum. Only spend on things that are directly related to producing revenue. Then, as you begin to grow, you can start to design those fancy business cards.
#5. Do as Much as You Can by Yourself
Sweat equity is invaluable to small business owners just getting off the ground. Employees can also add tons of value to your company, but they come at a significant cost.
At first, putting in that sweat equity and handling as much as you can on your own will help you keep your costs low. If you need outside help early on, you can opt for freelancers or contract workers. Then, when you’re finally ready, you can hire your first employee.
About Scott Crockett
Scott Crockett is the founder and CEO of Everest Business Funding. He is a seasoned professional with 20 years of experience in the finance industry. Mr. Crockett’s track record includes raising more than $250 million in capital and creating thousands of jobs. Scott has founded, built, and managed several finance companies in the consumer and commercial finance sectors.