We all want to be rich. We all want to have wealth, the latest gadgets, and fashionable clothing. However, getting there can be a bit of a pain and, sadly, you ultimately need money in order to make money.
Or do you?
People always think of things like real estate when they want extra passive income. However, real estate is expensive and you technically need to buy a house in order to rent it out. If you have enough money to afford a second home, then you’re probably doing pretty good for yourself and you likely won’t need this guide. However, for the rest of us, getting the money for a second home is almost impossible and unless you’re already rich, you likely won’t be getting that money anytime soon.
That’s why the rest of us like to start businesses. Even though starting up a company can be relatively expensive, it can be done on a budget if you know how to. The things you need to consider are your market, how to promote your products or services and how to cut costs by getting your own hands dirty. So if you want a frugal path to starting a business, here’s a short guide on how to go from rags to riches.
First impressions count
The key to making great first impressions is to look and seem professional. It doesn’t matter if you’re just starting out by selling your services as a freelancer, or if you’re handcrafting toys and decorations to sell online, you need to remain an air of professionalism. One of the best ways you can do this is to mask your residential address that you use for business purposes. Surprisingly, business addresses can be relatively cheap and you can get a prestigious address for a very low price every month. It’s easy to set up, there are no limits, you can access your postal mail online and you’ll look far more professional.
Build a customer base with a smile
If you want repeat customers then you need to treat them with respect. Say please and thank you, be polite, don’t be obnoxious or rude if they’re giving you a hard time, and always put the customer first. If you do this, you’ll build a loyal fanbase and it’s likely they will recommend your services to other people, thus building you up an audience. If you’re lucky, they might even use social media to recommend you or blog about your products to give you even more attention. The more humble and positive you are, the more likely your business will take off, and it costs nothing to be nice to people.
Use cheap solutions
If you’re doing something like writing blog posts, then you don’t need to pay a subscription for Office 365—you can just use Google Docs which is free. If you’re a digital artist, then you don’t have to pay a subscription for Adobe Photo and you don’t need to pay for software such as Corel Painter—just use a free solution such as GIMP or Krita. You don’t have to pay monthly to use online accounting software either, just learn to use a spreadsheet and do it by hand. When you’re starting out, it’s important that you cut down your initial investment costs so that you can continue to make money and build capital. Not only do you learn skills by not relying on expensive software, it means you’ll make a smoother transition into the industry-grade solutions when you finally amass enough money.
Focus on a single market
It’s common knowledge that to be a successful business, you need to be diverse. Sadly, that takes a lot of knowledge, money and effort. You also need to have a lot of employees if you want to reach into several different markets. You need to treat your business for what it is; an at-home business run by a single person. So when you read articles about growing your business, take everything they say with a grain of salt because their situation doesn’t apply to you. Focus on a single product or type of product, work on your customer engagement skills, and provide them with the best quality product you can for the price range. Don’t try to diversify early on when you haven’t even established an audience.
It’s entirely possible to take control of your financial situation and run a business on a budget. However, it takes a lot of penny-pinching and you may need to cut corners here and there. As long as you focus on these points and put the customer first, you’ll have a much easier time running a business out of your home.
Love Counting My Pennies?
Sign up to get our latest content by email.