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Many problems people face in starting their small businesses are based on a lack of capital. In the sense that the idea they have in their head is great, however, seeking loans from the banks to start their businesses proves more abortive than fruitful. How to tackle this issue is a major debate that many entrepreneurs have. However, there are ways that every entrepreneur can start their small business without breaking banks;

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  • Start with what you know

Starting with what you know means starting with available resources to you. Infrastructures do not have to be in place before starting the business you desire. Starting with what you know enables you to minimize mistakes and maximize opportunities. What this means, in essence, is that as a business that is starting up, there are always available resources to use. You may not need to have a big shop or a mixer; you can manually mix a cake and continue making sales until you profit enough to afford a shop.

  • Measure financial growth

To start a small business without breaking the bank, it is important to measure your financial goals. Always take stock of your sales record, the debit and credit, and financial transactions in the business. This helps you track where the money goes and where money flows. In essence, track your money. On the other hand, you can request the business financial statements from your bank to keep you disciplined in business.

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  • Seek loans

Not from banks, but seek loans from family and friends. They might be reluctant, because they have not seen a track record of your revenue generation. You can show them how the business can repay the loan that has been taken. It encourages them to give you loans without even asking for interest. This way, you’ll be able to expand your business with little to no financial implications. After all, family and friends will hardly say “no” to giving another family member a loan, especially when it has been proven that this loan can be repaid.

  • Expand Business, Payback Loan

After expanding the business, business owners must learn to pay back their loan once received from family and friends. Once the structure has already been established, you can continue to make a profit. Paying back a loan is important; it helps keep the dignity to the business’s name and helps with recommendations. Loans should not be for personal use. Rather, use that money to expand the business.

  • Rinse and Repeat

Rinse and repeat is a step that every business owner must learn to take. Rinse and repeat, because growing a business is all about the basics. You have to keep the basics running.

In conclusion, anyone can start a business with next to nothing. The famous late basketballer, Kobe Bryant, was asked what the source of his success in basketball was. He said, “sticking to the basics”. In growing a business or whatever it is you intend to do, make sure you stick to the basics, and this is the best way to grow your business without breaking the bank.

Featured image source: Businessday.ng
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This article was first published on 18th March 2022

grace-christos

Grace Christos Is a content creator with a proven track record of success in content marketing, online reputation management, sales strategy, and so much more.

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