- 1). Pool as much of your personal wealth as possible. Determine how much you are willing to gamble with and invest in yourself. One of the best ways to avoid bank financing, loans and other forms of credit to get a new business going is to tap your own pockets. This might mean you need to keep working at another job until your new business is going well.
- 2). Keep inventory simple to start. The less you have to spend on inventory, the more money you keep in your pocket. If yours is an online venture, inquire about working with a wholesaler to ship directly to the customer, saving you money on purchasing items upfront. If you have a brick-and-mortar operation, purchase some of your initial inventory on credit so you can generate sales before your bills are due. Just be responsible in your spending so you don't go into debt.
- 3). Trade services and products with other vendors. Particularly in a bad economy, people are aware that businesses --- particularly new ones --- don't have tons of disposable cash laying around. However, you may have something one of your suppliers needs. For example, if you are particularly adept at marketing and PR and are running a retail boutique, an interior designer might be willing to design and help decorate your boutique in exchange for marketing assistance. Or if you are opening a massage clinic, you might convince your table supplier to cut you a deep discount on your tables in exchange for complimentary massages for a year.
- 4). Outsource employees where possible. You can save a lot on annual salaries and benefits in the beginning by hiring employees as independent contractors. To save on initial capital, you might also consider hiring interns looking for class credit to work with you on building your business at first.
- 5). Engage in grass-roots marketing and advertising. While you may want to get the work out as quickly as possible, you probably don't have the funds to purchase an expensive advertising campaign. Start small. Pass out fliers, utilize social media, tell family and friends and ask them to do the same. Attend community events and talk up your business. You might be surprised at how effective this form of marketing can be.
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