Read on to get 8 Clever steps you need to follow to get your business running with limited funds.
1. Don’t worry about a detailed business plan.
A business idea needs a plan but the problem is that in most business start-ups do not go to plan. So why spend hours and hours making one?
Your local business college or university will tell you that you must make a detailed business plan before you start any business venture, and yes, a plan is important, but why spend hours and hours on it when you could just get on with starting your business?
In the beginning, you need to focus on developing a minimum working product (Minimum Viable Product) which you can get out into the market and test. If it is a success, you may be able to cover your basic costs with the money it generates. You can then continue to develop it, repeat it, and grow your business at the same time.
Entrepreneurs who spend a long time perfecting their business idea can quickly find that they have been left behind.
With the high speed of development in the current business world it is important to get your product or service ‘out there’ rather than having it spread all over your breakfast or office table and the best way prove your idea is a success is to get it in front of your potential customers so that you know if you need to develop your idea further, change it, or ditch it!
2. Test Your Business Idea – With a ‘Minimum Viable Product’ (MVP).
In the beginning, you need to spend carefully. You should only build and pay for the things that are essential for your business and what is required to deliver your ‘Minimum Viable Product’.
What is a Minimum Viable Product?
It is the minimum you need to do to test your business product or service in the ‘real world’ market. You do this by producing an actual product at minimal cost – this may be just a small sample of the product, a simple website or Facebook page that offers the basic product, idea or service you are planning on offering. It should have the correct basic images, information and pricing but not necessarily a ‘fine-tuned’ final product.
This will enable you to see your visitor numbers and observe their behaviour and will give you much more reliable information about your business idea that just asking people what they like or don’t like about it.
And, most importantly, this keeps your costs down at a time when you are spending your hard-earned cash on startup costs but have very little – if any income.
Be Clever and use your Minimum Viable Product to test the market, learn more about your consumers and perfect your product or other offerings before spending all your money.
See our YouTube video series here:
Clever Entrepreneur – Finance Fundamentals.
Part 1 – Minimum Viable Product https://youtu.be/ICtv0iAZ7OI
Part 2 – Building Business https://youtu.be/Ws86jQTnpzg
Part 3 – Avoid these 5 Common Financial Mistakes By Entrepreneurs https://youtu.be/0rbaJYoUFGk
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Main Image Pixabay: Tumisu.