Great Idea But Little Capital? Don't Let That Hold You Back. Here are eight strategies to build your business with sweat equity.
If you have a promising idea for a new venture, don't let a lack of funds prevent you from following through. Here are eight tips to bootstrap your way to business success:
1. Be an expert.
If you build your business around your skillset and area of expertise, you don't need to use valuable funds to pay for outside consulting.
2. Tell your friends
If you are getting a business off the ground, shout it from the rooftops. Tell your family, friends, neighbors, mentors, people you meet at networking events, former co-workers -- everyone. Take to social media and make some phone calls. You never know who will want to help or help spread the word.
Related: For Your Startup to Thrive, You Need to Build Value for More Than Just Customers
3. Stick to a budget.
There are some expenses that are unavoidable when building your business, like phone and electric bills and renting office space. Be careful about how you spend your money when you are first starting out.
4. Don't get overwhelmed with debt.
Use your venture's revenue to pay for expenses like office furniture and supplies. While it may seem simple to buy everything you think you need at once and dump it on your credit card, that sum could surprise you when you get next month's bill.
5. Have a solid payment policy.
Don't set up a payment policy based on what you think will appeal to customers. Set up the one that works best for the company's growth.
Related: The Key to Every Successful Business is Agility
6. Time is money.
As you grow, remember that sweat equity (the effort you put into building your business and brand) is just as important to your business' development and monetary value as financial equity.
7. Get the word out.
Use social media to generate buzz about your new company and position yourself as a trusted resource in your field for the press.
8. Wear many hats.
Whether it's marketing, customer service, accounting or hiring, your hard work is the lynchpin to getting your venture off the ground.
For more on building a business with sweat equity, check out the video above.
Related: Think Carefully Before Seeking Funding (Infographic)