Use Tide to open a business bank account
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If you want to start a business but have no money available to launch it, hope is not lost. There are several ways to finance a new business and get your career as an entrepreneur off the ground. In this guide, we’ll explore your best options for starting a business when you don’t have money.
A business bank account basically works like a personal one – the main difference is that it’s dedicated to your business’s finances. You should therefore expect the same features, such as a debit card, the ability to make and receive payments, an overdraft option, a banking app and so on.Use Tide to open a business bank account
With most of these finance options, you’ll need to present the lender(s) with a business plan. This helps them get a better idea of how the money will be spent and your ability to pay the loan back on time.
Even when you’re not applying for business finance, it’s a good idea to create a business plan. It helps you to set targets, create a clear direction for your business and spot potential hurdles before they hamper you.
Every business plan should include the following sections.
It’s a good idea to review and adapt your business plan at least once a quarter.
Your business type determines how much tax you’ll pay on your profits, plus how personally liable you’ll be for business debts.
Here are your main options.
There’s more about these options on the government’s website.
The great news for low-budget entrepreneurs is that setting up an online business is incredibly cheap. All you really need is web hosting and a domain name. On top of that, it’s completely free to list your business on social media, Google Maps and most listings websites.
If you think you do need a physical business space, investigate whether a virtual office, serviced office or a co-working space can fulfil your needs. These options are far cheaper than traditional office space rental.
You might think you’re ready to employ people once you’re too busy to do everything on your own.
However, you should also wait until you can comfortably afford to pay them. That means you could comfortably make payroll for the last few months at least.
Running out of cash is one of the most common reasons that start-ups fail and hiring an employee too early puts you at a huge risk of doing that.
Also, being unable to pay your employee will have a huge impact on them and their family.
Don’t jump into this decision lightly.
Marketing on a strict budget is a Catch 22 situation.
It costs money to reach a lot of people, but without this reach, how are you supposed to make a profit? The solution is to ensure your business finance includes a large marketing budget. If your marketing strategy is successful, you should be able to scale it and scale your profits.
For more detailed steps to successfully launching a business, see our full guide to launching a business.
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