Budget – the key thing one looks at, when starting anything new. Be it business or in their own lives. Most often when someone has a great idea or a plan to start something new they skip the budget. The reason they skip the budget is because they either forget there is one, or fear that the budget itself is going to stop them from doing what they wanted to.
Unlike in a personal event or happening, any new business requires a budget. The common mistake or misconception is that this budget should be very expensive otherwise people are going to treat you like you were cheap!
Budget can be minimal but not zero
You can’t have no budget. But it is possible to have a minimal budget to start a business. Try to minimize your expenses when you start a new business. Cut off on luxuries. You can use old furniture instead buying new ones that might look cosy. It is not a shame to use an old laptop. Always prefer used ones when you start your small business. This gives you more control on your cash flow and helps you concentrate on your tasks.
Find vendors who are interested to grow with you
Choosing vendors is very crucial when you have a minimal budget. You can’t hire someone who might end up eating all your budget. You also can’t hire someone who might be willing to work for a minimal budget with regrets – this ain’t gona work!
Find a vendor who can relate to your business, your vision and who can see your future, not just your past or the present. Find a vendor who is interested to grow with you, not grow on you!
Talking about your budget
A very sensitive topic during your conversation with your stakeholders, including your vendors is your budget. You can’t tell someone you are going to need a website done for $10 as that is your budget. No! No one is going to bother to even hear what you have to say. When you talk about your budget, for example to a vendor, it is very important to discuss the following:
- Tell them you have a minimal budget and seek advise on what best can be done within the budget
- Share your vision and what you believe is going to make your business successful. Find different options to make up for the minimal budget
- Ask your vendor if they can help you being part of your success. If your vision is in their interest, there are chances they might do it
- If a vendor is willing to help you within your budget tell them clearly how you will give back in the future