Cash flow is everything in any business, so it’s vital to have a clear understanding of how to increase and manage it. 

When you start a business with very little capital, it works particularly well if overheads are low. It’s even more vital to manage the little money that the business does have. A key step involves creating a cushion for unexpected expenses, by establishing an emergency fund. You should also be prepared to go without a salary for the first year and you should lower personal expenses as much as possible. 

Important steps to take when starting a business with very little capital: 

Plan ahead very carefully and conserve cash by keeping a lean mindset. Avoid spending money on unnecessary expenses and find creative ways to save. Don’t have a marketing manager? Don’t fret. You can use the multitude of options presented by social media networks.  Don’t have a website? Nowadays you can set your own website up. 

Take advantage of lease options when you start a business with very little capital, so you don’t have to buy everything. If you can’t afford to buy a company car, then you can always lease one.  

Operate virtually where possible, until you absolutely have to get a physical office space. The internet has made it simple to operate a business, so use this to your advantage as much as possible. Having Skype meetings can save on travel expenses for example. 

Don’t buy new equipment and find bargain deals on good quality used equipment.  

Don’t hire employees until you can afford to remunerate them adequately. If the organisation can operate without numerous employees, manage this properly, until its turning a profit, which enables the hiring of staff.