You have the drive, the passion and the belief in yourself to grow a successful business, but you don’t have the money. So what should you do?
I’ve been in this situation multiple times, but there is always a solution. It just takes work.
We have put together a guide on how you can successfully start up a business with only £1000 and grow it to a successful, cash rich business.
Can you start a business with £1000?
In short – the answer is yes.
You have to be realistic about it. With less capital, it means you will have to do all the legwork and it will take a lot of hard work to grow something financially sound.
So the real question is, are you ready to take on the hard work?
Do you have the time and patience for your business to grow?
Will you push through thick and thin with your business?
Will you be willing to go the extra mile for that sale?
Answer these questions, and you will have a better idea as to whether you can start a business with only £1000.
Plan your business strategy!
It’s all about planning!
I know you want to just crack on and get on with the grind, but a well thought out plan for the business and how it will grow will not only ensure you have a viable business, but will also provide you with a vision, strategy and timeline.
You don’t have much budget to splash here, so it is important you do as much research as possible to create the best product, targeted at the right target market. There is no luxury spend to see what sticks, you will have to be on it from the get go.
Things to consider when creating your business plan are:
- Marketing & advertising
- Time Management
- Competitor Analysis
Marketing & advertising – How are you going to promote your business and get it in front of potential customers? With a limited budget of only £1000, you have to think outside the box and ensure that every penny brings a good ROI (Return On Investment).
Objectives – hitting your goals is going to be vital to ensure your cash balance is positive.
Growth – how are you going to generate more cash in order to expand into a sustainable business? That £1000 will need to create an income for you in the future.
Risks – What are the potential risks of your business activities? How will you counter these risks? How can you ensure they don’t affect your tight budget?
Time Management – How many hours are you prepared to put into the business? How will this affect your objectives and growth? What areas of the business will you need to focus on along the timeline of the business?
Competitor Analysis – What are your competitors doing? Can you do something different with a limited budget that will grab customers attention?
Finances – making every penny count
A daily check on finances is going to have to be an obsession from the beginning. If your business runs out of money it dies, no matter what kind of success you are having.
Every single penny that enters or leaves your account needs to be accounted for in your business plans. You have no room for surprise bills.
You need to ensure you have access to an online banking account to ensure you can bring up your statements on demand.
No amount of money should leave your account without full justification as to how it will bring a positive ROI. This is VITAL for the businesses survival.
Marketing and Advertising with a small budget
You’re on a budget. You can’t afford to waste any money on ‘brand awareness’ – the only thing you want to worry about is the sale that comes through the door.
We have thought of a few marketing methods that you can use to grow sales on a limited budget:
These include social media pages, as well as websites which will link to your product or service, and expect a commission for any sales that they bring through. The great thing about it is that you don’t have to pay for the advertisement unless a sale is made! If you can get the right commission rates, you are certain to bring in a positive ROI.
Previously, I’ve contacted various bloggers and businesses via email to set up an affiliate program off my own back. It will have to be convincing and provide them a good incentive for selling your product e.g. high commission, popular product – if you can provide a case study down the line, even better!
You can read more about setting up an affiliate program here.
Estimated initial spend: £0
Creating shareable and engaging content to grow your social media page is completely free. Get your friends and family to share your page, as well as using popular hashtags to increase your exposure and followers.
Start by producing a great brand image, with a picture and cover photo which stands out across Facebook, Instagram & Twitter. Add a short bio, which sums up who you are, what you do and who you do it for.
There are various techniques to grow your following, but most importantly you will need to produce quality content, interact with your audience and post regularly.
There are some fantastic social media guides to growing your brand, such as this one by Grin.
Estimated initial spend: £0
Writing a blog is a great way to create shareable content, as well as help your website rank higher in Google to bring in organic traffic. Add a blog to your current businesses website and ensure it is visible to visitors
Spend some time researching the best structure for the blog content, with some interesting topics in mind. Write from an angle that you are bringing value where other people have not or add value to content that already exists.
Take a look at this blog by Wordstream, who give you 5 steps on how to write an awesome blog post.
Estimated initial spend: £70 (hosting, domain and a good WordPress theme)
SEO (Search Engine Optimisation)
This is making your site as user friendly, content driven and as readable by Google as possible. It includes a list of factors, which Google uses to determine where your website will position on Google. Generally you want to be in the top 10 positions to see any sort of results – so patience is key.
SEO is extremely important for many modern day businesses, and the great thing about it is that it can be totally free – it just takes time and effort.
Optimise your website fully for Google and ensure you are constantly updating your website with news and content – organic traffic will be key to your success but it won’t come easy – take a look at this beginners guide.
Estimated initial spend: £0
Friends & Family
Share the business with your friends and family, get them to become ambassadors of the business and spread the word. Take advantage of your connections – it is free but sometimes just takes some courage.
Be direct, and tell them what kind of referrals you are looking for as well as educating them on what you actually do which can benefit others. Ensure you appreciate any effort and follow up any of their referrals as a priority.
You can read more on how to make the most of your Family & Friendships in the article here.
Estimated initial spend: £0
Attend free events and build your network/connections. The more people you chat with and build a rapport with, the more likely they will try you out one day or share with their friends. Connections can be a great way to spread the word.
Read more about how you can take advantage of events here.
Estimated initial spend: £5 an event for travel
Create some video’s with engaging titles and content. Capture people’s attention with shocking information, or with just some cool challenges. Videos go viral everyday or even just get a few thousand views – but it could be a fantastic way to drive traffic to your website – all it takes is some basic video production skills which could all be done on your iPhone.
Want to know more about how to utilise YouTube as a income generator – read this article.
Estimated initial spend: £0 (as long as you have a decent camera on your phone!)
There is no one route forward with marketing methods, give them all a go and see what works. They’re time consuming and take hard work, but once they start working then they are incredible sales generators.
What type of business can you start with £1000?
If you put thought into it, there are endless businesses you can start with £1000- just check out our recent articles which includes 9 low budget business ideas. And here are a few more examples:
- eCommerce Dropshipping Store
- Affiliate Marketing
- Video Production – small scale
- Virtual Assistant
- Car Washing Business
You’ve planned your business thoroughly, stressing the importance of finances and marketing strategy – what to do next?
Once you have the foundations in place including a website, branding and a solid product – you are ready to push your business out there and give it all you have got.
Keep an eye on your objectives, and give yourself time to push the business out there. Listen to your customers needs and wants and don’t be afraid of hearing no!
I hope you enjoyed this article on How To Start A Business with £1000.
Stay tuned for more content.