When starting a new business, you not only need to avoid upfront costs, you also need to choose a venture which will start generating cash from day one, And that means finding a product or service and a market which makes it easy for the customer to say, Yes or No,Here are some tips to help you.
*1-CHOOSE A PRODUCT/SERVICE WHICH PEOPLE NEED RATHER THAN WANT:* With little in your marketing budget, you simply don't have the time or money to wait for people to get round to buying your product in the future, You need to find something they will buy from day one.
*2-CHOOSE A PRODUCT/SERVICE PEOPLE WILL INSTANTLY UNDERSTAND:* You don't have the time or money to start educating potential customers about why they need your product or what it can do for them, choose a familiar product.
*3-CHOOSE A WELL TRODDEN ROUTE TO MARKET:* As well as choosing a product people already understand, if you are starting with little money then you also need to choose a route to market which your customers already feel comfortable using.
*4-HAVE MULTIPLE ROUTES TO MARKET:* It is always a good idea to combine two or even three routes to market in case one fails.
*5-AVOID HIGH-TICKET PRODUCTS/SERVICES:* When starting out with limited resources, choose something relatively low-cost per unit first because buying stock will cost you less, and because in a tough economic climate people are reluctant to shell out for high ticket items, like Jacuzzis.
*6-SWAP FIXED COSTS FOR VARIABLE ONES:* Fixed costs overheads are the ones you have to pay regardless of whether you sell or not.They are the big upfront costs of renting offices, paying business rates, paying staff etc.The best is to replace fixed costs with variable costs and adopt a new model, Pay as you go,this means that all your costs are linked to sales.
*7-ASK FOR PAYMENT UPFRONT:* This will enable you to invest in new products and services, as well as take care of certain costs.
God bless you and may you and your dream soar higher and higher this year.
