A study by Yell Business proves that money isn’t everything when it comes to creating a new business venture. The research revealed that 40% of entrepreneurs create their business with £500 or less, while a third spend up to £250 on funding their start up.
In terms of profit, 93% of those surveyed turned over a profit in the last year, with 85% of business owners feeling that their business was successful.
It’s thanks to the UK’s generous small business model and low corporation tax rate that entrepreneurs don’t need to flash their smile and apply for funding. You can register a limited company for just £12 electronically or £100 by post.
This is great news for the 51% of people who think about beginning their own business, but are put off by obstacles such as a lack of funds.
For those unhappy in full-time employment, you’re likely to be happier if you ‘take the leap’ and start your own business, according to the survey. 88% of business owners said they are happy in their working life, while 34% said they don’t have business related worries that keep them up at night.
How to save money as a start up
If you’re thinking about starting a business, but are unsure about how you’ll cope financially, we’ve come up with some top tips on how to bootstrap for your business.
Managing your finances is the crucial part of owning your own business that you can’t afford to ignore.
It may seem easier to sweep your money under the carpet and simply try to save, but without knowing where your money goes and what your plans are financially, you’ll have a slimmer chance of being successful.
One way you can get a handle on your finances is by signing up to an online cloud accounting system which can manage your expenses, invoices and accounts. If you’d like to try Pandle, you can sign up for free here.
Splurge where it matters
Spending money may seem counterintuitive when you’re trying to save. However, you need to focus on spending money where it matters most to be able to reap the benefits.
For example, not offering new employees a reasonable pay will mean you’re left with an unhappy workforce who aren’t dedicated to growing the business, and will be more likely to leave for a better paying position.
Spend more on employees to find the right person for your business who shares values and will be a good addition to your team.
Mark Clisby, marketing director at Yell Business, said: “As our research found, the current catalysts for taking the leap and starting a business include inheriting funds and being made redundant.
“However hopefully, the positive revelations around low start-up cost and high success, will give the inspiration needed to budding entrepreneurs, so that they don’t wait for scenarios like this to happen to them.”
For these budding entrepreneurs, Clisby offered this advice: “For anyone in the process of starting up, my advice would be to thoroughly research your market before making the leap – and to prioritise digital. From a website, social media to reviews, this is essential for any business in 2017”.