How Women Can Self Finance to Start a Business of their Own?
There are many women in our country who have this desire of starting something of their own, instead of opting for a full-time 9 to 5 job outside. But, one main hitch that stops them from starting their own business is “where to get the start-up money”. Women, especially belonging to the middle class families of urban and semi-urban areas, have tight budgets and family expenses. Even if they have amazing business ideas, lack of capital prevents them from starting their own business. We present below few tips on how to accumulate free start-up capital for all women who want to start their own business and invest in their future.
- Think of a business idea that you are confident of: First of all, start your business on something that you know. It should be build around your own personal expertise, skills and knowledge, something that you are confident of, and something that you can start without any third-party help, be it consultants, workers or any outside assistance. The less you rely on outside sources, the more you can save for yourself.
- Tap your personal savings: One of the easiest ways to finance a small business is tapping your own personal savings. This can be from sources like as from your own saving account, some old investments in fixed deposits, family inheritance, gifts and rewards in the form of money and not to forget those some small amounts of money saved from your monthly budget given to you by your husband.
- Advertise your business for free: Let everyone you know, be it your friends, family, relatives, neighbours, past colleagues, business contacts on what you are doing. Call them, send messages, Whatsapp them about your new business. Make your new venture known to your social media friends. And if you are lucky, your friends and family members can help you spread the word. This type of marketing at grass root level is without any investment. Take advantage of free advertising and marketing.
- Avoid overspending: Remember, you still have your family to take care of, you are still in tight-budget constraints, your monthly family expenditures will remain the same or may increase and these cannot be avoided. What you can avoid though is unnecessary expenses. Make use of discount cards to do shopping, wait for SALES seasons, try to buy wholesale stuff for groceries, avoid bringing home fast foods or eating out, instead opt for eating a home-cooked meal, skip beauty parlours and learn to do your own pedicures, manicures, threading or colour your own hair, avoid buying that expensive dress that you had long awaited for. Remember, such small bits of sacrifices will repay you in the long run.
- Start your business from home: If you start the business from home, you can avoid a huge expense in getting an office space outside. Convert a small room of your house or a portion of your backyard or your store room or just a corner into an efficient office space.
- Get work in advance: One way to self finance your business is to get advance commitments in work. Before plunging on to your new business idea, make sure that you have aleast 1 or 2 business projects in advance. Your former boss (if you have left the company on good terms) or your good friend/neighbour/relative is often a reliable source to give you your first project of your start-up work. And if the first project goes off well, their recommendations will help you to get your initial stream of work and income.
- Start a part-time job: If you have skill and experience and if you really need some extra money for your start-up, one good way is to get a part-time job. Save up your earnings by working part-time until you have enough money to start the business. A part-time job can supplement the money that you need for your new business
- Get rented equipment or tools or buy used products: This is another way to start a business. You definitely need infrastructure (computers, office furniture, phones, supplies, other tools and equipment) to start your business. Try to get these items on a rental basis or else opt for purchasing second-hand products. This is all the more helpful when you are not sure exactly what and how much you require. And when there is an inflow of cash from your business, you can buy these items as per your needs. Shop smarter to build your initial capital.
- Apply for a bank loan: Last but not the least, apply for a small loan under government-aided funding programmes. Several public-sector banks like State Bank of India, Andhra Bank, Bank of Baroda, etc. offers bank loans at low rate of interest under Government business loans. This will help you to manage your daily operational expenses, expansion costs for your business.
There are various ways to self finance your business. Don’t let shortage of capital prevent you from taking the plunge in starting your own start-up.
And yes, to make your business known to others, register yourself at www.womeninbusiness.in (A Platform for home-based entrepreneurs).