Can You Start Your New Business on a Shoestring Budget in 2021?

If you have a great idea and a genuine desire to build a business, you should never be put off by a small budget. Why?

Because although it may not be as easy as it would if you had unlimited funds or the backing of a serious investor or two, it is perfectly possible to start a business on a shoestring budget, even in 2021.

start your new business on a shoestring budget

Here are a few things that will help you with that.

It is perfectly possible to start a business on a shoestring budget, even in 2021. #smallbusiness Click To Tweet

Start Your New Business with for Loans and Grants

If you only have a small budget, it may be useful to know that there are a number of startup loans and grants available to budding entrepreneurs in the USA and elsewhere from both the Federal government and individual organizations. 

Obviously, not everyone who applies is awarded a grant, but if you have a great business idea and you’re able to come up with an excellent business plan, you stand a really good chance of securing some extra money.

So, spend the time researching grants for your new business in 2021. You will be surprised to see how many are available out there.

Over the last 11 years in the United States grants rose 42% to the states, according to Pew Research. As I always say here at Inspire To Thrive, time=money.

So, spend the time researching grants for your new business in 2021. You will be surprised to see how many are available out there. #grants Click To Tweet

Rent What You Need Starting Out

Did you know that you can rent office furniture or that Flex Fleet offers commercial flatbed rentals? Those are just two examples of vital business equipment that you can rent, rather than buy outright. However, there are many more.

If you have a small budget, making small monthly payments may open up more possibilities to you and allow you to start making money, which you can then reinvest in building up your small business.

Hence, you may even find out that you may not need the furniture or supplies that you thought you would. I did not have to re-order pens or business cards this past year due to the pandemic.

If you have a small budget, making small monthly payments may open up more possibilities to you and allow you to start making money, #smallbusinesstips Click To Tweet

 

Use Social Media To Market Your New Business

If you have access to social media, you can do your own marketing for free. All you need to do is create business accounts on as many platforms as you can and start posting the most engaging content you can.

If you do have a little money to spare, it would definitely be worth paying for a few ads and maybe getting a social media expert in to advise you for a short while. By having someone manage your social media for you, you can spend time doing other things in your business.

However, you can successfully start selling with little more than a social media account and your own wit and consistent posting.

Of course, doing the research first to see where your audience spends their time on social media is really key today. 

social media management tool

Make Use of Freelancers

If you do need to pay for work such as logo brand design or accounting services, but you are working with a shoestring budget, freelancers can be a great option.

You don’t have to worry about employing them with all of the costs that entail, and since you can choose to hire anyone anywhere in the world, you can get the work done at some really competitive rates.

Just make sure you fully vet freelancers to ensure they’re up the job before hiring or you could end up wasting your budget and having to pay for the same work twice.

Start Small for Your New Business

When you’re on a shoestring budget, you should not start out being too ambitious, making promises you couldn’t possibly deliver.

Start by offering a core of just a few products or services to keep things affordable, and only when you start to bring some money in should you consider upping your game and offering more.

Many small businesses that do not survive try to grow too fast. Slow and steady is the way to go. Running a small business is a marathon and not a sprint to the finish today.

When you’re on a shoestring budget, you should not start out being too ambitious, making promises you couldn’t possibly deliver. #InspireToThrive Click To Tweet

Your Turn

Good luck building your small business in 2021. I’d love to know if you are building a new business this year online or offline. Please leave a comment below! 

Lisa loves helping others to thrive online through Social Media, Blogging, and SEO. What good is knowledge if you cannot share it with others? She has 30+ years of experience in marketing/advertising with 10 years of experience in content marketing, social media, blogging, and SEO. You can purchase her ebook about Twitter on Amazon, or take her Instagram class on Udemy.

  • Hey Lisa,

    How have you been? When I started freelancing (digital marketing) several years ago, I started with nothing (except for a website and hosting expenses). No loans, no grants, no renting (except occasional office space).

    I kept going that way for a long time.

    For the last few years though, the path I was going towards needed some investments (such as a few platforms, equipment, and others) — but I still think I am built to work on shoestring budgets (I guess that’s just how I am wired?).

    Just when I thought “shoestring budgets” are maybe something we should be ashamed of (that thought kept bugging me for a while), you just demolished that with this post 😀

    Thank you for this, Lisa.

    Ash

    • Hi Ash, I’m well, thank you. Your start sounds just like mine Ash. I did have to invest in a new laptop and hosting as you mentioned. After that my biggest investment is in people with 3 freelancers. I do look at my budget every month to be sure I’m not wasting money on any product or service. Thanks for coming by on this one Ash and have a great day 🙂 You are most welcome!

  • Hi Lisa,

    Good points as always. Starting small is important because as your business grows the budget grows. If you start small you need only invest a few bucks here and there as you scale and grow. Plus you do all the leg work to build a rock solid foundation under your business, the right way.

    Ryan

    • Hi Ryan, that is so true about starting small and letting your budget grow. I’d also add to keep an eye out on it as some things cost more than others now too. I’m always re-evaluating expenses. Thanks for coming by on this one and have a great day there 🙂

    • Hey Ryan,

      Absolutely true about how important it is to start “small”. I have a feeling that it brings a few other special things in an entrepreneur (compared to someone who starts with a truckload of cash rightaway). What do you think?

      Ash

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