One of the most common obstacles many home-based working moms face is
trying to start or run a new business on a limited budget. The first few
years of a business are usually the hardest financially. Some moms
leave full-time careers and substantial salaries to start a new
business. Others start a home business as stay-at-home moms wanting
additional income to support their family as well as a professional
outlet to balance their diaper-changing days.
In either case, starting and running a home-based business takes money.
How much money will depend partly on you and the type of business you
choose to run.
Below are our top 10 tips to save you and your home business money:
1. Do your own market research by talking to potential clients or
customers. Many new home business owners skip this step only to come
back to it later (or wish they had). Those who start businesses without
doing any type of research, risk the possibility of their target market
not needing or wanting their particular product or service. The
competition may be too fierce, or there may not be enough potential
customers to support the business. Or perhaps, the product isn’t priced
correctly. It is just as important not to price your product too low as
it is not to price it too high. Talk to others in similar businesses as
yours to see how much they charge and what they offer for that price.
2. Team up with other non-competitive businesses that target the same
market to do some co-marketing. For example, desktop publishers and
print shops can do a direct mail campaign together advertising both of
their services or buy an ad in a local publication and split the costs.
Neither is in competition with the other. They also can hand out
business cards or flyers for one another as well as give word-of-mouth
referrals. It’s a great way to double one’s marketing efforts while
splitting any advertising costs.
3. When you have a satisfied customer, don't be afraid to ask for
referrals. People like to help others especially new businesses trying
to succeed. Show pride in your work and people are sure to notice, and
when they do, ask if they know any others you can send a brochure or
sample to. Another great way to encourage referrals is to offer a
discount or special offer for any customers who are referred to you.
4. Barter or trade your services for other products or services you
need. Associations and organizations are not only great places to
network; they are also great for finding businesses that offer services
and products you need. Look for businesses you could help with your
product or service and offer to barter or trade for theirs. (Be sure to
check with your tax professional for tax issues involving bartering and
trading.)
5. Find another home-based working mom to swap babysitting with. All
home-based working moms need some dedicated time to work on their
business tasks. By swapping with another mom, each can work on their
businesses without adding to their childcare costs.
6. When buying new office equipment, go to a place that offers a
low-price guarantee. You can save time and money by shopping at places
that will refund any difference in price if you find the product cheaper
elsewhere.
7. If you are looking for computer equipment, consider buying used
equipment. Look in the classifieds and talk to others that may know
someone looking to upgrade. Ask for warranty information and make sure
the machine is in good working condition. Also take a look at the
computer companies offering refurbished machines. Some are priced
accordingly and usually come with some type of warranty.
8. Send postcards for direct mail solicitation. They are cheaper to
print and less expensive to mail. Another advantage is that they are
more likely to be read since they take no effort to open.
9. If you hire sales help, pay by commission only so you only spend
money if you make money. A salesperson can increase your sales without
adding any up-front fees or salaries.
10. Use pre-printed design papers for letterhead, brochures and business
cards if you only need a small amount. The papers can be found at most
large office supply stores, and they are great for new businesses trying
to get started on a small budget.
Lesley Spencer, the founder of Home-Based Working moms has helped
thousands of moms start their businesses in the 10 years that she has
been in business. Their group provides networking, support, media
opportunities, and more. By actively being involved in such a group you
also increase your chances of success because of the power and support
that she offers and the opportunity to network with other professionals.
Getting connected with positive “winners” in the entrepreneurial world
is just another way to succeed.
These money-saving ideas should help with your budget but new business
owners also need plenty of drive and determination to succeed. It takes
time to develop and grow a business. So be patient and give it all
you’ve got!
Thanks for the share! I would also suggest investing in a Postage Meter for Small Businesses. Not only do they save you money but they save you time which is crucial when owning your own business!
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