Episode 9 -How to start a business on a shoestring.
Welcome to the be your own boss podcast, the young entrepreneurs guide to
starting a business. Whether you're thinking about business for the first
time, or you have an idea that you want to develop, then this is the podcast for
you. I'm Mari and I'll be guiding you through this 15 part series that will
keep you on track and help you think through the challenges that come with
starting a business. Part of the Welsh Government's Business Wales service, Big
Ideas Wales raises aspirations and supports young entrepreneurs' ambitions
for business. Part funded by the European Regional Development Fund, Big Ideas
Wales supports young people through online resources, business skills
workshops, and one-to-one sessions with an adviser, to help your ideas become a
reality. To get in touch with us you can like and follow us on Facebook, Twitter
and Instagram. Message us and one of the team will get back to you. Call us via
the helpline on 03000 6 03000, live chats on the
Business Wales website or you can email us at bigideas@gov.wales.
Hi everyone, let's just have a quick recap from episode eight where I talked about
creating your business plan, from building a budget, to SWOT analysis.
Remember - always make sure to think smart, now though, it's time to talk about
starting a business on a shoestring. There's one thing you don't need to
worry about, and that's not having the money to start up a business, because you
can do it quite cheaply. We've touched on working to a budget in
previous chapters when looking at getting online and market research, so
now you need to think about starting small and lean which will allow you to
build up a profitable business in the long run. Testing the water without
risking too much money is known as bootstrapping, or using a lean model
canvas. If you're starting a business on a budget this is the model for you. Lots
of successful businesses have started this way, from having little or no money
at the time of startup, so don't panic. It's not easy though, it's hard work - you
have to do everything yourself, and there are no shortcuts. The brilliant
thing about it is you don't need to wait for funding to come through and get
things started.
Bootstrapping isn't just about keeping your costs down, it's about creating a
lean business that makes profit. You have to start small testing as you go, and
making sure that you can get the basics right before building the business up
slowly. Business owners that embrace bootstrapping often do it really well
and it creates business professionals who are resourceful, hard-working
persistent, and they never stop learning. But if you have to do everything
yourself with no shortcuts, you'd have to be! I love giving you helpful tips so
here are the 10 ways to start a business on a budget.
1. Work from home
2. If you're putting your business online build your own website using free or
cheap apps like Wix or WordPress.
3, You can sell on established marketplaces
like Amazon, eBay or Not On The High street, or why not sell via a market
stall or pop-up shop.
4. You can advertise your business for free on
local websites like Gumtree
5. Why not save money on phone bills and make the
most of Skype, Facebook Messenger and Whatsapp, and there might be others you
know of as well.
6. Ask for help from friends and family with useful skills,
like finance, marketing and design.
7. You can use cheap or free marketing tools
like email, leaflets, PR and social media. Everyone's on social media so use it to
your advantage!
8. Find freelancers if you need an extra
pair of hands with something, but if you think you can do it then what's stopping
you!
9. Use IT cloud service, as most of them are free and this saves on
expensive software that could quickly become out-of-date anyway.
10. Swap skills with other entrepreneurs and help each other out.
Create a network of people.
if I can give you another piece of advice it
would be look before you leap. Don't think you have to jump straight into the
business, you can starts by working on the business in
your spare time until you can confidently give up your day job. If
you're still in school, college or university then you can continue your
studies while starting your business. Use this time to build on the business and
make the most of the people around you. You don't immediately need to own or
rent the premises to begin with either, you could use open spaces or service
offices to save on rent and this is a perfect opportunity to meet like-minded
entrepreneurs just like you. You can learn from what you say to each other.
There's lots of information about these spaces on our website.
If you're creating
a product, ensure you build a prototype and get advanced sales before you spend
money on supplies and manufacturing . Also to avoid big purchases why don't you
rent equipment, and as the business grows you can consider purchasing your own.
You know it's that time to hear from our Big Ideas role model, and I had the chance
to speak to Lowri Jones from Gemwaith Jewellery.
ML: Hi Lowri!
You okay? LJ: I'm fine thank you ML: Thanks for the chat, now to start with, tell us a
bit about yourself and about your business.
LJ: I'm originally from Llanelian
and I started my business about four years, four/ five years ago and I make my
own jewellery. It's sterling silver. I'm from farming background so my
Dad and my Taid and Mam have got some sheep, and after graduating from Bangor [University] I
decided to buy some, a small flock of sheep that look really cute. They're
from Devon and Cornwall so the Devonand Cornwall Long-wook sheep, and
they've got very big curls, and yeah long wool as it says in the breed, so because
there's so many jewellery makers out there, I wanted to design something unique,
different, that would stand out - and it came to me one morning to combine
the wool and the jewellery, so my pieces have got wrapped wool round them.
The necklaces and the bracelets - and that's one of my unique selling points
I also personalise the jewelelry so you can have your name or date or
special saying or something like that as well
ML: And the wool makes it very Welsh as well, which is important to you?
LJ: It is yes. So all of the lambs and sheep now bred
on my dad's farm, and yeah so it's got that Welsh wooly twist
ML: And makes it very unique
ML: Where did the interest start in jewellery and jewellery making?
LJ:I've always been one I've always liked creating stuff I've never been a
writing essays type girl, and I graduated from Bangor University in
product design, and they did have the jewellery module in second year, but I knew
before starting uni that it was sort of jewellery that I was interested in, and
every year with the university degree,
to go on work placement, and I researched a few different companies
that made their own jewellery and learned through them really, and then after
graduating I got a couple of jobs - One with Emma Kate Jewellery down in Cardiff
and then I moved down there and I learnt most of my skills from her, and
then after working for her for a year or so, I decided to and start my own jewellery
company, and part-time really worked in a cafe - and then I was lucky enough - my
brother had moved out, and so I changed his bedroom into a little workshop and
gradually spent my money on tools and silver and started on Facebook and Etsy
and Instagram, and it's free - and a great starter.
ML: But then you saw a shop LJ: Yes, so after year and a half or so of making
jewellery and getting good feedback in the fairs, Christmas fairs I was doing and
online sale, a little shop on the high street in Conwy came up and it was
perfect size, perfect location and decided to go for it. So yes, I do
handmade stuff, I like to support locally made, so I decided to also sell
handmade gifts and cards and footstools and home wear and stuff in there
to fill it up a bit as well, and also my workbench is there so it's
It's safe, if it's quiet day in the shop I can crack on with making orders.
ML: What have the main challenges in running a shop as well as the business?
LJ: Well a lot of time basically you don't get much time off - I'm lucky now I've just
employed two part-time girls and so hopefully I'll get a few days off here
and there over the summer holidays! Yeah it's hard because some days you'll have
really quiet days and you won't sell, you probably make about 5 pounds all day but
other days you will make and you will hit those sales and make up for it, it's just
very up and down, Summer holidays are great, and Christmas for me
is the busiest time of the year, people buying for eachother.
It's ongoing, you never switch off really, but I do enjoy it which makes a difference
ML: Yeah, and you have to be passionate about it
LJ: Definitely, because if you're not passionate you're not gonna give a hundred percent towards
your work and people won't invest their money in you, so you need to enjoy
what you're doing.
ML: And would you say that you've learnt a lot as you gone along?
LJ: Definitely yeah - I've made a lot of mistakes which you learn from, and I
think that's the key in life really, to make the mistakes, to learn
from them.
ML: There is help out there?
LJ: Yes there is,
definitely. I mean family members- I always ask my
dad bless him, but there's also help online.
ML: Any advice for young people
thinking 'I want to give it a go I want to start my own business' - what would you tell them?
LJ: For me personally I started small like I said, started in my older
brothers' bedroom and worked part-time - and then if it doesn't work out, you
haven't lost that much.
ML:All the best for the future LJ: Thank you very much!
So think about the lean model canvas - it's going to be tough but the outcomes
will be great, and just think it'll all be down to your hard work. Don't forget
to listen to the next episode where I'll be discussing funding, what's available
and where to find it. Once again get in touch if you have any questions.
To get in touch with us you can like and follow us on Facebook, Twitter and Instagram
Message us and one of the team will get back to you. Call us via the helpline on
03000603000, live chat on the Business Wales website or send us an
email bigideas@gov.wales. I'll speak to you all again very soon.