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Starting a business on a budget

starting a business on a budget Virtual HQ

It is often assumed that to start a business, you need bucket loads of cash, but this is certainly not the case. Starting a business on a budget is easier than you think.

With a new business starting every minute in the UK alone, having a huge budget isn’t always a reality. But this doesn’t have to be a stalling point. Comparing March 2021 to March 2020, there was an increase of 8.4% when it came to new businesses starting in the UK. You don’t need a big budget to start a company, but you do need an idea and a plan.

A good business idea, executed alongside careful planning, has every chance of becoming more successful than a business started with a much larger budget.

If you don’t have a massive start-up budget, or maybe you are unsure about leaving your current employment just yet, then maybe look at setting up a Virtual Business.

A virtual business has very little in the way of physical structure, instead, it relies on the Internet and telecoms to achieve its desired goals.

Starting a business in 2022 – and beyond

Over the last two years, there has been a dramatic change in the business landscape, with more people than ever before taking their employment into their own hands.

But what are the first steps you need to take to start a business in 2022? Let’s take a look.

  1. Look at your strengths and weaknesses – You’ve got a great business idea, but what pitfalls might you come up against? Looking inward initially can help you address where you can help yourself and where you might need assistance.
  2. Conduct market research – With so many new businesses starting in the UK, sometimes markets can become saturated. What makes you stand out? By conducting market research, you can review your competition.
  3. Take a look at your budget – Is your idea feasible? Are there other ways to reduce costs? With a virtual office, you can easily reduce your expected overheads by hundreds of pounds.
  4. Have a business plan in place – This doesn’t have to be an in-depth document, but you should have a business plan outlined, which you can add to and change when required. This helps you stay focused (and stay on budget).
  5. Start to network – Surrounding yourself with like-minded people and other business owners is a great way to expand your network and learn from others.
  6. Register your business – You don’t need to have all of the above in place before you register your business. Getting this done first can solidify your idea and push you to get the wheels in motion. Find out more about how to register a business in the UK here.

Benefits of setting up a Virtual Business

Inexpensive startup costs/less risk

Office overheads, staff, expensive equipment, office furniture, training, these are just some of the costs associated with traditional brick and mortar companies. Your startup can launch as a lean mean fighting machine.

Without the need for a high level of investment, the risks to you as an individual are greatly reduced. Starting a business on a budget means you can invest your profits in the things that matter – your team and yourself.

Easy to Start

Almost everything can be outsourced, from billing and marketing to fulfilment and customer service. All of these outsourced layers will take a cut of your revenue. Each provider is an expert in its own field, able to deliver results from the get go.

Many outsourced services offer free and extended trials and work on a per transaction basis i.e. they will only take a cut of the money you actually make.

By structuring the business in this way, you can establish yourself quickly.

Easier to Scale

When your business starts growing, these outsourced services will simply grow with you.

You don’t need to hire more staff or move to a bigger office when you expand. Remember, each time you hire a new employee they will need training and time to settle into the role. Moving to a bigger office will cause major disruption (and increase your fixed overheads.)

A virtual Office is a great way to centralise your business in a premium postcode. As a Virtual business doesn’t need physical office space, your address can be situated in an ultra-exclusive location. This can help you ‘wow’ potential clients.

Flexibility

The true beauty of a Virtual business is the flexibility it provides.

Most Virtual business owners only require a laptop and an internet connection, they can work from home, or from whoever they want. This can help them craft a working day that fits around family life or other commitments.

Virtual business can, with adequate planning, fit around your current employment.

One of the biggest fears for new business owners is the prospect of having to give up a regular salary. With a Virtual business you can wait to make the switch, testing the water before finally becoming your own boss.

Virtual Headquarters offers a range of virtual services, specially crafted to help your Virtual Business from day one – from Virtual Offices with post forwarding, to telephone answering with customer service packages, we’ve got your back.

Haley heads up all things marketing here at Virtual HQ - making sure that we're visible online and that we look damn good.

Haley Darby
Haley Darby

Head of Marketing

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