Frugal Alternatives for Launching your Product or Service

 

Launching your own business is certainly no easy venture. But for the entrepreneur connoisseur, turning your vision into a reality and “living the American dream” far outweighs the many frustrations and tribulations. However, the combination of limited funds and strict qualifications from bank loads can make your visionary-endeavor evermore complicated. And yet, even if you do happen to be undercapitalized regarding the launch of your own product, hope is not all lost. In fact, countless successful entrepreneurs have gone on to create multimillion-dollar businesses without even borrowing as much as a cent. These bootstrapping success stories stem from a variety of innovative philosophies, which include: creativity, resourcefulness, drive and methodical strategic-thinking.

While receiving a bank loan approval or having the advantage of teaming up with a merchant cash advance firm may be the more feasible alternative in regards to starting a business, there are additional ways to achieve entrepreneurial-success with little to no capital.

Begin in your home

Allow Bill Gates to be a profound example of why starting your business within the doorsteps of your own garage can be highly effective.

When money is of concern, setting up shop in your own living space can be a resourceful opportunity for saving cash on rent. Whether it’s in your parent’s basement, the living room or even the bathroom, blueprinting your product in your own home eliminates the risk of not being able to pay off monthly rent fees. Sure, it most likely won’t be a glamorous environment to work in, but after all, “there is no place like home.”

Consider upfront payments

Whether you’re running a taco stand or creating the next stage in transportation, the sooner you get money, the more realistic your dream becomes. When money is of concern, you may have to put yourself in uncomfortable situations or do things a bit unorthodox. Receiving money from clients, such as retailers, early on is certainly no easy method, but do your best to establish a down payment via trust and determination. And the sooner your client is financially invested in your product or service, the more your client will be obligated to your venture. If receiving a down payment is simply an infeasible solution, consider offering your client a discount for paying cash in advance or invest in a large quantity. Ultimately, the benefit of receiving money upfront goes far beyond being able to pay off your bills on time.

Work with other start ups via trade

Bartering is still very much a relevant source of business strategy, especially when correlated with cash-strapped companies. When short on capital, research fellow start-ups and consider negotiating a trade with them. Most likely, other entrepreneurs will be floating in a similar boat like you, and they may need your product to further build their product, and vice versa.

Maintain a conscious effort to keep expenses low

In order for your product or service to have any realistic shot at making a dent in the consumer market, you need to have a comprehensive understanding of what needs to be spent, and about how much needs to be spent. Sure, working from home, discount payments and barters are all examples of resourceful thinking, but you also need a comprehensive strategy that correctly utilizes each money-saving idea.

To further your frugal way of thinking, it may be a viable option to outsource production by using freelance or contracting agencies to help minimize overhead costs. In doing so, you save much needed capital that stems from direct manpower, equipment, utility and space of operation(s).

Consider partnering with nonprofit organizations

In order for your product or service to flourish in your target market, you’re going to have to advertise it. Unfortunately, many startups simply don’t have the capital to advertise with their preferred demographic, let alone pay for overhead costs. So, to help get the ball moving, consider researching nonprofit companies that may have an invested interest in your product. In doing so, you may need to offer your product or service for free, but the added exposure you’ll receive results in free public relations and can only benefit awareness. So, expand your network and reach out to small, local non-profits or charities.

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