When I initiated my business venture, I approached a bank for a loan, thinking it was a straightforward process. I was well-prepared, armed with a detailed business plan, a comprehensive list of essentials for my business, and all the required documentation. Surprisingly, I was declined. It wasn’t due to lack of creditworthiness or an inadequate business plan. The banker’s reason was, “Given that over 90% of new businesses don’t make it past their first year, you seem unprepared for the possibility that yours might be one of them.”
Though I recognized his intention was to protect my interests, I felt undermined. He didn’t even offer me the chance to take a risk. Most entrepreneurs acknowledge the tough odds of a business surviving its first year, and I was well aware of that. But my confidence was in my perseverance, not just the odds. The loan officer interpreted my determination as a willingness to deplete my life savings, and he was hesitant to see me face potential financial ruin.
I embarked on this journey independently, relying only on the modest resources and funds at my disposal. I opted for used office essentials and furniture, and chose an affordable laptop over the high-end, specialized models. Lacking the budget for traditional advertising, I innovated. My promotional tactics were out of the box, yet effective. I discovered that I didn’t require vast sums to introduce my business to the world.
Would my success have been the same if the loan processor had approved my business loan? It’s uncertain, as I managed to thrive even without the funding. If I had the capital for advertising, would the outcome have been different? Regardless, I’m grateful for the denial, as it has given me a deeper understanding of the challenges many small businesses encounter with limited resources.
So how can you run your business on limited resources? Here are a few things that I learned along the way.
1) New vs. Used
When starting your business, you do not need everything to be “new.” Second hand items cost substantially less then new items, and work just as well. Plus, if you think about it, customers will be more comfortable around your office if it feels “broke-in”, rather then new and sterile. It gives them the feeling that you have been in business awhile.
2) Creative Advertising
You do not need the hundreds of dollars that it takes to place ads in papers or put commercials on TV. It costs very little to design and print you own flyers and put them in places where your potential clients would gather. Turn your vehicle into a moving billboard by investing in a vinyl signage for your doors or windows. The best thing? Face to Face meetings with your potential clients do not cost a penny, so look for every opportunity to talk with our potential clients.
3) Work At Home
Depending on your type of business, you may consider working at home rather then renting office space. This will save you a lot of money on rent and furnishing an office. Once your business becomes more successful, then you can always rent office space later.
Overall, be thankful for the struggles that you go through now, because in the future, they will have been well worth it. Plus, it will give you a better understanding when it comes to other small businesses.
And, no matter what, never give up on yourself.
ALL THE BEST!
