Starting a new business as a student or with little financial resources - article by David Salamons for Fresh Business Thinking

Published on 15 May 2009 under category: cubism

By David L P Salamons, Consultant at Cubism Law

As published on the freshbusinessthinking.com website:

http://www.freshbusinessthinking.com/business_advice.php?CID=17&AID=2481&PGID=1

Many people do not take the brave step of starting their own business because they believe it requires substantial financial resources and they fall victim to the "when I get some money, then I will start the business."

The problem is "Now" is often the time. Now is when they have the bright idea. Now is when they have the energy and enthusiasm that will attract others to them and will want to be part of something new and exciting. If you wait until you have enough money to start a business that time may never come.

Interestingly, interviews with very successful people reveal that those people almost exhaustively attribute their successes to qualities such as passion, drive, luck, support of family etc but rarely to having substantial sums of money at the beginning. Indeed, having little to risk is often a great incentive to get off your backside and start a business.

So how can you start a business with little money?

Well, of course it depends on what kind of business but let´s look for a start at cheap or free opportunities:

Ø If you are operating a business that involves computers (which one way or another would include most modern businesses), the price of computers are now cheaper than ever and most companies will do deferred payment deals.

Ø If you wish to go into the manufacturing industry, for example textiles/fashion, it is reasonably easy to have sampling of products carried out by potential suppliers either very cheaply or free in the hope that you will give them all of your future business. Even foreign manufacturers - particularly in China and India - will be willing to do this.

Ø You may well need professional help from solicitors and accountants. Take the risk of asking for some free advice or help up to a certain figure on the basis that you will employ them as your professionals when the business takes off.

Ø Banks. Yes, things are difficult in the credit crunch, but the high street clearing banks have more and more free mentoring and other services that are available to assist the initial business sector. Take a look around and ask.

Ø Even if you need to take on business premises, it is quite usual to ask now for short-term leases with break clauses allowing tenants to terminate the lease if businesses do not succeed in the long term. Any such request should be coupled with a 3 to 6 month rent-free period giving time for the business to find its feet without carrying a heavy rental burden. An even more cost effective way to obtain premises is a short-term business let within serviced offices. Particularly recently, more and more favourable terms can be attained. Alternatively, work from home or ask a friend or family or acquaintance who has spare office space (and much of this is available at the moment) if you can work there for free or in return for some business service that you yourself offer.

Ø Office furniture. In recent times, with a glut of liquidations and bankruptcies, office furniture is probably at its lowest cost ever. Check out your local press and various sale websites and you may be able to pick up your entire office furniture either free or for a nominal price, as many companies closing down are quite happy to simply pay you to take the furniture away so that they can grant vacant possession of their premises on sale or surrender of their lease.

The best overall advice is:

Ø Take advice from people who have started with little or no funds and their mentoring can help you with a running start!

Ø Before you buy or rent anything, ask yourself if you really need it and if you will still really need it in three months. If the answer is no, then try to borrow it or hire it short-term.

Ø Never be afraid to ask for help or for a discount!

If you are offering some form of business to business service, many previously held beliefs about the need to have smart expensive offices are no longer relevant in this increasingly IT dependent society. Do not let a perceived lack of status encourage you to spend money you do not yet have. And good luck!

You can see David's Cubism profile page here.