4 Modern Startup Trends That Are Lowering Barriers to Entry

Whether you launch a beauty startup or a creatives agency, you need to keep it affordable. Once you author your business plan and begin setting your budget, it sinks in that it will cost you to open your doors.

A few recent trends have emerged in the last few years that make it easier and cheaper for people to get started in business. The top four of these include opening online-only businesses, simplified online lending, business collaboration and co-working. Here is a look at how each of these items helps you start your business for less money.

Online-Only Businesses

You can start your business solely online. During early stages, an online retail business is likely to ship and manufacture products in their garage or basement. As business picks up however, many l ogistical c hallenges

present themselves and need to be navigated. Rather than ship from your garage which creates logistical problems, you can partner with a drop shipper. This cheaper alternative lets your customers order online while a third-party fulfills and ships the order. The drop shipper houses your product and manages inventory for you.

As your business grows, your online retail business can add an offline kiosk, mini-store or experience. People like buying something they can see, touch and feel first. As soon as you can expand to a kiosk or booth, you can attract new customers and get to know existing customers better.

Simplified Online Lending

Another helpful trend is the simplifi cation of the loan process. Large, online loan malls like Loanry.com continue to simplify and personalize the loan process. These loan brokers offer a single application that helps you to narrow the number of possible lenders. This helps increase your approval chances and reduce the number of applications you complete. The lenders often deposit funds directly into your bank account within days of approval.

Business Collaboration

Business collaboration also lowers the costs of launch. For example, financial tech businesses, or fintechs, partner with banks and cosmetic startups partner with skin care firms. The cost- sharing, work sh aring and co-marketing required for these businesses create mutual benefits. Look for potential partners before launch and focus on the mutual benefits.

Coworking

Coworking centers provide a central locationfor multiple businesses to share office space, equipment and overhead costs. This fosters collaboration and reduces overhead while providing an appropriate workspace.

These four business trends will make it easier for you to launch a business this year and save money when doing so.