Many times someone will contact me who has spent a great deal of money already to get the infrastructure of their business up. They will put ads in the local newspaper; they have leased space from which to see clients, they have bought furniture, created all their forms and handouts… and are ready to go…. On the surface…

Only to find no one calling!

They put the cart before the horse and wonder what’s wrong.

Although this is a big mistake many people make when they decide to start a service-based business, it’s quite common. They are focusing on what I call the ‘nuts and bolts’ of the business, but they really should be focusing on the PURPOSE of the business: What do they ultimately want to create, who do they have a passion seeing, and what is it about them that draws people to them?

This puts the horse before the cart, but now they need to build the wheels for the cart.

Now they are ready to put the planning in place. Yeah, planning. People hate it. The business plan, which is really just putting down on paper your goals and objectives in starting a business, is essential. No business plan has to be long, though. In fact, a healthy business plan could be complete in just around 10 pages. The marketing plan is just as essential: Where the business plan highlights the goals and objectives, the marketing plan spells out HOW those goals and objectives will be achieved. I call the marketing plan your action steps to make it all happen.

THEN the person is ready: Their ads will be focused, in order to attract people to them, the space will be purposeful, to create the image to support their vision, and the furniture will give the message that they are now clear they want to convey to those ideal clients.

Today people think they CAN’T start a business because they don’t have the money. However, people need to realize that over 99% of all businesses start through just the sweat of their own brow, and NOT a lot of money. Heck, even Steve Jobs and his pals started Apple Computer by just selling a few of their belongings and building the computers for their first order in their garage! No ads. No fancy factory. No fancy receptionist to answer the phone. No furniture.

In fact, it’s also important for readers to realize that over half of the companies on the Dow today started their own businesses during recessions or depressions! Combine that with the fact that 99% of them bootstrapped their business, and you might get the point that you do NOT need money to build your business, and you also don’t need fancy trimmings at first, either!

So, forget the fancy trimmings and ads that go nowhere. See clients where you can, even in a coffee shop or in their home or in your home. Create a website, even by yourself if necessary, and set up that imagine online, rather than in person to begin with! Offer to write articles in the newspaper instead of run expensive ads. Contact local service organizations to let them know you’d love to give a presentation to their group that could help them meet their own needs. Save your money for that computer upgrade or a new suit, each of which helps you grow your image and business. Develop relationships – network. Get to know people. Learn how you can help others in business so that they will also be available to help you.

One day you may be ready for that fancy office and ads. Or, maybe once you really get your business going you won’t NEED the ads. And, who knows, you may not need the office, either!

To learn more about bootstrapping, and to get a specific guide to follow to incorporate bootstrap strategies, check out my ebook, “13 Bootstrap Strategies to Build your Business on a Shoestring Budget” by clicking here.

Margie

The labor department just released the latest news about our unemployment rate, announcing we are at a 5-year high of 6.1%. It’s really no surprise, and it may get worse before it gets better.

There are two times that people decide to start a business: When the economy is strong and they feel they can take their time to get their business up and running, before quitting their jobs, and when the economy is weak, and they either have just lost their jobs or fear it will happen any time.

Because service-oriented businesses can be started with very little capital, through bootstrapping, probably one of the BEST times to start a business is when the economy is weak! Imagine making a go of your business during today’s tough times… and then what is possible when the tide turns? And, it WILL turn; it always does.

In fact, back in 2001, the talk was big then on the failing economy, too. Headlines included such titles as these: “Fed Says Economy Remains Sluggish”, “Brokerages Stuck in Profit Slump”, “The Layoff List”, and I love this one: “US Industrial Utilization Falls to a 17-year Low”.

During that last economic slow-down, reporters for the online newsletter at Wharton School of Business at Penn State asked several professors their opinion about starting a business when the economy was weak. Their replies are exactly what I say above! With a good, unique offering, and the right type of business, and being able to start a business without a lot of capital, a business can be started in good or tough economic times.

In that series of interviews, the professors also discuss the changing of the face of economy; back then they mentioned it more along the lines of including more ‘m-commerce’, but it’s actually the beginning of what we now know as ‘globalization’. Thomas Friedman probably emphasizes this best in his compelling book, “The World is Flat”. I HIGHLY recommend this book for anyone either in business or considering starting a business.

So, what is good news about an increased unemployment rate? The good news is it could be the best time of your life to start that business you keep thinking about!

Margie