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Start Small and Test Market

Many business owners feel the need to borrow money to get started. While it isn't unusual for many businesses to borrow, it isn't necessary for all businesses. Some capital intensive business operations like restaurants, grocery, hardware and clothing stores require large amounts of capital to purchase an inventory. In cases like these borrowing is often the only option. But service businesses provide an opportunity to minimize the initial capital required for a startup.

Many service businesses require such a small amount of capital to get started that the amount can often be saved prior to starting the business. And don't be fooled in to thinking that you must have a large advertising budget to get your business off the ground. Innovative advertising strategies can often be implemented which offer both the advantages of low cost and the ability to test results quickly and easily.

Take the case of a small lawn care business. Joe has saved the amount of capital required to purchase the equipment necessary to offer professional level lawn care. He doesn't have a large advertising budget so he asks his initial clients if he can place a yard sign promoting his business in their front yard in exchange for a slight discount on his services. He can purchase the professionally made yard signs for about $2.50 if he buys fifty at a time. Before the summer is over he has placed 50 yard signs for a grand total of $125 plus the amount of the small discount. With fifty customers Joe now has the income he needs to explore other methods of advertising.

Will this work for every business; of course not. Will it work for many service oriented startups? Yes! Take the time to explore inexpensive promotional methods, test market and tweak your campaign until you are satisfied with the results. Who knows? You may be able to start your business without a mountain of debt and deliver the service your customers expect.



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