Starting your own business can be daunting, especially if you’re unsure if you can make it work or even get it off the ground. You can kickstart your new company, even if you don’t have the funds or a good credit score, from creating a website and promoting your services on social media to researching small business funding online to give you a financial boost. Read on for more tips on how to start a business with a lack of funds and a bad credit score.
Think about your business idea
If you want to work for yourself and start your own business, you need to think of an idea, a product, or a service you can provide to make a profit. If you’re unsure or can’t decide, the best place to start is to sell your services – something that you’re good at and think people would pay for. For example, if you’re a social media whizz, you could look at helping businesses with their online presence, or if writing is something that you’re good at, offer a freelance service to those that need help. You could also choose a service like cleaning – this profession will always be required! Or you could set up a dog walking business. These services are easy to get started, as you don’t need expensive equipment or training to make them successful.
Create a business plan
Once you’ve decided what service you’ll offer, you’ll need to create a business plan. Taking the time to do this will allow you to plan how you will grow your business and how you will make it a success. You should include market research, so you get to know how other companies like yours operate; you should also work out how you’re going to market your new business, as well as how you’re going to make it available to customers. A financial plan with projections, costs, and expenses would also be advantageous. This may seem like a lot of work, but having a plan in front of you can make it easier to see how your business will take shape and grow.
Your website is a shop window where you can display all your goods and services, and the great thing about developing a website is that you can do this on a budget. It doesn’t require any previous knowledge – there are website-building platforms that can offer everything you’d need and are easy to use. You can promote your business on social media as a way of connecting with others in the same industry and promoting your product to potential customers worldwide. Social media is key in spreading the word about your new business. This is one of the best tools when starting a business and can work well when offering a service or a product.
Improve your credit score
If you’re struggling to start a business due to your credit score, you should do all you can to improve it, as this could open doors for you in the future. Improving your credit means you will be more likely to be approved for loans and various other finance options in the future. You can improve your credit score in a few ways, including regularly making repayments for outstanding debt, paying your bills on time and in full, increasing your credit limit, and checking your credit report for errors – something as small as a misspelled name could be bringing down your score.
You may be wondering how you will get funding if you have a bad credit score – fear not; there are still ways to benefit from financial help so your business can grow. Small business loans are one-off lump sums given to new companies to get off the ground, and although you’ll need proof that you’re able to pay back the loan, they can be helpful for a younger business. You could take advantage of a small business grant if you don’t qualify for a loan. These are sums of money given to a company by the government or local council that doesn’t need to be paid back. Taking the time to research grants could be beneficial to help kickstart your business.