10 Tips to undertake with limited means

Start a new economic activity requires capital. However, many entrepreneurs end up learning that the capital alone is no guarantee of success.

Many businesses such as the Internet bubble showed very well, began with millions in their coffers to finish in the "pipes". While a few businesses with shoestring budgets eventually grow to become extraordinary successes. How can this be?

Successful ventures not necessarily a contest of fat wallets.

On the contrary, is an eXERCISE of smart financial management, careful strategic planning and yes, very lucky?

Successful entrepreneurs know how to make the most of every peso or dollar they have. here 10 tips for entrepreneurs and entrepreneurs with limited financial means

1. Set realistic goals

The first step every entrepreneur / or should give for the launch of a new activity is properly determine the scope and size of your business.

Many entrepreneurs simply take to the idea of starting a business, not understanding what the company really means: the financial, management skills and technological expertise, human resource needs. Finally they fall short with what it can do.

Consider again the company has in mind and determine whether it is within a range achievable and desirable.

2. Plan your expenses properly

Many entrepreneurs start a business without any idea of costs. Or you overestimate the cost, or worse, they underestimate the financial resources necessary to properly capitalize the business. This is especially evident in the preparation of financial projections in your business plan.
Some entrepreneurs prepare financial projections with numbers that do not fit into other sections of the business plan (ie the section talks about marketing television campaigns with a budget of $ 200!). Some do not include a list of assumptions to explain that based their numbers.

Out of nowhere they feel their business can grow by 20% the first year and 40% in the second, without explaining how such growth can be achieved.

3. Finance your business intelligence

For many entrepreneurs there is no single source that allows you to finance the whole operation. The money from a source (eg the mother) may be sufficient to acquire the raw materials but still need money as working capital.

Entrepreneurs need to see the funding as the sum of the parts of your business: what you are an individual asset financing needs for business.

It should always ask: What is the best way to finance this asset using the least amount of dollars up front? The ideal source of financing is what provides the biggest pay period, at least interest, requires little or no collateral and demand no personal responsibility. Oh, almost a fairy tale. The next best option is to choose, given their priorities, which makes more sense for you and your business.

4. Put your money where fruition

Low-income entrepreneurs have one thing in common: they lack money and often struggle to find capital for your business. Capital for the launch of a company is going to one of these investments: "fixed assets" (furniture, furnishings and equipment), or "working assets" (inventory and working capital).

Despite the lack of capital, many entrepreneurs invest most money in office equipment and a very elegant chick (expenses that a company is struggling to emerge may well ignore). This is a common error in making decisions. Successful entrepreneurs invest every effort in working capital which brings cash-and sales-and least fixed assets.

5. Is this the right time?

Timing can be key to a successful implementation. There is an appropriate time and wrong time to open a business, especially if your business is cyclical or seasonal location. Opening a retail space in their favorite shopping mall, or your own convenience should not be your reasons for starting a business. Instead, you must plan carefully the months when the peak demand for the finished product.

6. Control your cash

It is said that the cash flow or cash flow is the lifeblood of a small business. And rightly so. Your business will survive only as long as you have cash to pay its financial obligations. With limited capital, cash flow controls every decision in companies with few resources, and may be the only way to surf during the initial phase. A key rule for entrepreneurs: only when you have enough cash can even begin to think of the benefits. Many businesses fail not because they do not have enough capital, but because they fail to plan properly the stage of capital shortage.

7. Impulse sales

Grow sales depends on several factors: the nature of the company, its location, the level of competition, and the intensity of the marketing and promotion that carried forward. The goal of every entrepreneur should scarce resources be getting sales immediately. If you have a bank loan or financed with credit card, for example, your creditors will not allow you to delay your payments just because you are still in the process of developing its sales. They want to charge! Now!

Hence needs to boost marketing your company, perhaps with some flyers this week, an ad in the local newspaper the next, or by sending newsletters and contribute articles. The key rule is to dedicate at least 2 hours a day to marketing. Learn the steps it will take before and after opening to maximize sales and help the business to rush the sales growth.

8. Balance your sales and profit targets

Sales and profit do not always go together. Some entrepreneurs are willing to cut their benefits in an effort to improve sales. Often the volume by itself will not be able to compensate for loss of profits. Try to maintain gross profit at least equal to the average of that activity. Strive to strike a balance between a solid policy of capturing sales without sacrificing profit margins required.

9. Sea "thin / o and miserable"

A company need not struggle to wrest dead weights. Keep your fixed costs low and only spend on things that can help to substantially improve what is essential. If you can still function properly since the office that you have at home, no need to lease office space in the downtown area. Avoid hiring a permanent employee if you can still manage with temporary and seasonal.

Every dollar spent must be directly linked to income: Spend a nickel (5 ctvs) only when you are safe or that you get 10 cents of return :-).

10. Use financial tools

As owner / or your business, you are responsible for life and growth of your business. That involves knowing not only the marketing or production aspects of your business but the financial tools they need to manage your business effectively. Understanding the finances of your business will give you control its direction.

Although this may be unpalatable to some entrepreneurs, knowing the economics of the business will tell you where they've been, where you are going and how fast it will come. Of course you can hire an accountant or someone to carry the books, but yourself or MUST understand your cash flow (cash flow), revenue, profit and loss statements and balance point (break-even-point)