Already have a great concept for your small business but you’re wondering how to get it off the ground with minimal business funding? Sometimes all a small business needs are careful planning and a kick-start to get the ball rolling. When you’ve found a niche within a market with a good potential customer base delay will cost you. Here are some tips for getting your business up on its feet with less than $5000 in the bank.
Create an Efficient Business Plan
When you’re working with less than $5000 you need to have a well-crafted, efficient business plan. There will be no margin for error so you need to clearly identify your market, your target consumer base, and your projected revenue cycle. Be careful not to overlook details such as registering your business with the IRS and acquiring the appropriate permits and licenses from your local government unit. These may seem obvious, but they’re critical to keeping fees away and your business under budget.
Build a Dedicated Team
The key word is dedicated. With so little capital in the bank if you don’t start creating profit quickly your coffers will empty quickly. You’ll need a team that is dedicated to working hard and capable of absorbing a thin period when your business is launching. If you’re concerned about having to lay off team members you don’t need and can’t afford anymore it might be wise to look at outsourcing and freelancers to help your business in those early days before you have stable profit and revenue.
Business Funding Alternatives
eMerchantBroker offers several business funding opportunities to give your small business the extra boost and financial flexibility it needs to get over the top of that first hill and onto greener pastures. The first method is a merchant cash advance. A merchant cash advance is paying in advance for your future profit. Basically, you are buying your future profit from EMB, and as long as do a minimum of $2500 per month through an open merchant account getting approved will be no problem.
The second business funding method EMB offers is the ACH Business Funding Program. The ACH program may be even easier to get approved for as it doesn’t require an open merchant account. It’s similar to a merchant cash advance except that the gross deposits in your checking account over a four-month period determine how much of your future profit you can buy in advance.
These two approaches can be repaid by a percentage hold back and fixed daily payments. A percentage hold back is where you pay back the cash advance by a daily percentage of your credit card transactions. The fixed daily payment is simply a daily withdrawal from your checking account via ACH at a fixed rate.
Getting your business started on meager start-up cash may seem an impossibility but it’s easier than you think to turn $5000 into $250000. Preparation, an excellent business plan, dedicated team members, and financial flexibility can get your small business off the ground in no time at all.