This guest post from Aysha Griffin of “Inhabit Your Dreams” helps to debunk one of the myths that can keep us trapped in a job situation that no longer works for us. You might think that starting your own business will take lots of cash. As Aysha points out, this doesn’t have to be the case. Another great resource if you’re headed in this direction is Chris Guillebeau’s “Unconventional Guide to Working for Yourself.”

Here’s to liberating ourselves from limiting beliefs and creating right livelihood!

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15 Tips for Starting a Small Business on a Shoestring

by Aysha Griffin

“Bootstrapping” a business means using a small amount of money, usually your own, to start, operate, and generate income and profit that support its growth. Wikipedia describes it as “a self-sustaining process that proceeds without external help.”

For most people creating their own self-employment, this is the best – and usually only – way to go. While it’s tempting to think what could be done with a big infusion of capital, if your business is going to be successful, it will grow organically and you’ll learn a lot along the way. If it doesn’t fly, you’ll be happy you did not put all your investment (or someone else’s) at risk.

As a business coach to individuals, small-medium enterprises and non-profits over the past 26 years, here are a few bits of wisdom I’d like to share. This is by no means exhaustive (zillions of words have been written on the subject!). Please leave comments or questions below – thanks!

1. Get started – there is no substitute. Yes, of course do your research, determine your market and how you’ll reach and engage them, and what your competition is doing. But don’t put off beginning and letting others know you are in business.

2. As a bootstrapped business, you don’t need to initially spend a lot of money and time on legal advice, accounting, insurance, etc. (unless you have copyright issues or assets/liabilities and the like). You can hire these professionals later, as needed. Register your business name (as required in your state), open a checking account and get on with your work.

3. Keep your overhead down. Do not spend any money on equipment, products or services you can purchase as needed or hire someone else to do. As your business grows, you’ll have the money to buy what you really need in house.

4. Set up a simple bookkeeping system and record all expenses and income as they happen. It’s a good habit. You’ll also know where you’re at money-wise on any given day, and see what are your best returns on investment, and your operating costs. If you’re in a service business, track your time. You may find that the big project you thought was great, actually made you only $5 an hour. Using a single credit or debit card for all expenses can simplify the bookkeeping process.

5. As you start small and simple, stay focused on your primary product or service. This is where a “mission statement” comes in handy: what is your business really about, and why is this meaningful to you?

6. If an opportunity arises to rapidly expand, seriously consider whether this is a direction you care about and if there’s really a sustainable market for it. Not every “opportunity” is yours, and it’s easy to get sidetracked.

7. Learn the principle of leverage. If you can job-out a task, or refer a lead for a commission (or good will), do it. If you try to do everything your self, you’ll burn out and resent your business.

8. Have a marketing plan that is easy to manage; like one tweet and FB post a day, one blog a week. Beware of come-ons and diversions that sap your time and wallet (e.g., webinars, advertising offers, social networking, etc.).

9. Collect testimonials when your customers are most happy (right after the sale or project completion).

10. Network to find strategic partners and then send them business, asking for their referrals in return.

11. Don’t work for free. “But it’s good exposure!” you argue. Yeah, well you can die of exposure. Think “value added” instead, a bonus for doing business with you.

12. Continually assess what is working best and gives you the most joy. Do more of that.

13. Don’t be afraid to redefine and reposition your self as you get more experience and feedback.

14. Enjoy your freedom and celebrate your successes. You’re making this up now, so make sure it’s what you really want.

15. Remember that Time is the only non-renewable resource you have – guard it and use it wisely. Steer clear of energy vampires in all forms. 

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