Tips for starting a business with little capital

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It is often thought that to start a business you need a good amount of capital; But the truth is that it is also possible to start a business with little money without this meaning that the business cannot become quite profitable.

As a complement to our guide to starting a business, in this section we give you some tips that you can follow to start a business with little capital or money.

Set up your home business

In order to save on the purchase or rent of a premises or office, and thus reduce your investment, consider the possibility of setting up your business in your home.

If your house is not located in a commercial area or on a street with a good influx of public, keep in mind that if you are able to offer a product or service of very good quality, and you do an adequate promotion, consumers will look for you wherever They are, and that if you set up your business at home, it does not mean that later on you can move to a local.

If your house is not located in a commercial area or on a street with a good influx of public, keep in mind that if you are able to offer a product or service of very good quality, and you do an adequate promotion, consumers will look for you wherever they are, and that if you set up your business at home it does not mean that later you can move to a local.

Trade over the Internet

To reduce your costs and, therefore, your investment, also consider the possibility of operating your business over the Internet, either in its entirety or only in the case of some processes.

For example, instead of setting up a physical store, consider setting up an online store in order to save on the purchase or rental of a premises, on remodeling, decoration and furniture, on staff who serve the public, and even on products, already that you would not need to have these physically at the time of sale.

Or, for example, consider that the purchase of your products or the reservation of your services can only be done through the Internet, and thus reduce your operating and personnel costs, since these processes are automated you would not need to have someone to be in charge of serving the public.

Offers few products

Offering few products would not only allow you to reduce production costs, but also have a more efficient business process, specialize in the products you offer (and thus be able to offer better products), and project the image of being an expert in what you offer (and so they have a better chance of being bought from you).

If you consider that the ideal in your business is to offer a good variety of products, and thus give consumers more alternatives and / or attract more types of these, you could start with few products, and over time, as you acquire more experience in the market, increase the supply of these.

For example, if you are going to set up a restaurant, you could start offering a few dishes on your letter or menu, and over time, as you gain more experience and better understand the preferences of your audience, increase the number of dishes offered.

Offers few services

An alternative that you have to offering few products is to offer few services, which would also allow you to reduce operating costs, have a more efficient process, specialize in what you offer, and give the image of being an expert in it.

For example, if you are going to open a hairdresser, you could start offering only the basic services or those most required by your audience (for example, cuts, hairstyles and dyes), and over time, as your experience increases and you know better the needs your audience, increase the number of services offered (for example, also offer facial cleansing and massage services).

Use few inputs

To reduce your costs, you could also choose to reduce the amount of inputs used in your products or services or, in any case, look for low-cost inputs, although always making sure they are of good quality.

For example, if you are going to set up a business dedicated to the manufacture and sale of clothes, for the manufacture of clothes you could choose to reduce the amount of fabric used (for example, by using simulated pockets), the number of labels, and / or the number of accessories.

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Send your products to third parties

Depending on your type of business, you could also choose to have the products that you are going to sell to third parties manufactured (outsource the production), instead of buying or manufacturing them yourself.

For example, if you are going to set up a business dedicated to the sale of clothing, instead of buying the clothing or setting up a workshop where to make it, in order to reduce your operating and personnel costs, you could choose to have it made with your own brand to an external tailoring workshop.

Sell ​​through intermediaries

In addition to having your products manufactured to third parties, you could also choose to sell your products to the public through intermediary businesses, instead of selling them in your own premises.

For example, if you are going to set up a business dedicated to making clothes, instead of selling clothes in your own store, in order to save on the purchase or rent of a premises, decoration, equipment and furniture, as well as reduce operating, personnel and marketing costs, you could choose to sell them wholesale to intermediary businesses such as stands, bazaars and clothing stores who then sell them to the public.

Rent instead of buy

Renting in the long run is more expensive than buying, but in the beginning it can also help you reduce your costs and, therefore, your investment.

Nowadays you can practically rent anything, so in addition to renting instead of buying the premises or the office where your business will operate, to reduce your costs you could choose to rent, for example, the necessary machinery to manufacture your products, some furniture such as tables and chairs, or even the computer where you will work.

Make agreements or exchanges with suppliers

You can also reduce your costs by looking for suppliers with whom you can make agreements or exchanges to supply you with machines, equipment, furniture, appliances, supplies and / or products.

For example, there are providers that rent you machines, equipment or furniture at fairly competitive prices, or even lend them to you in exchange for keeping the advertising included in these assets, or using or selling exclusively their brand or their products; or that they supply you with some household goods, supplies or products in exchange for guaranteeing that you are going to work with them, or provide your services to their workers.

Final notes

Our goal with this guide has been to provide you with all the information you need so that you can start your own business, but also to encourage you to do so.

The two main reasons why a person who wants to have his own business does nothing to achieve it are usually lack of capital and fear of failure.

During our guide we have included various tips for starting a business with little capital; But if after having followed them, the lack of capital is still a problem for you, keep in mind that there are several businesses considered profitable and that require little investment that you can consider, and that in the last case you always have the alternative of looking for financing.

Also, during our guide we have also included various tips so that you can have a successful business plan; But if despite having taken them into account, the fear of failure still paralyzes you, one piece of advice we can give you is to arm yourself a little courage and act despite the fear or uncertainty that you may have.

 

Keep in mind that once you take the first step, fear will gradually fade away, that as you walk down the road you will be able to correct the course you have taken and, above all, that it is in errors and failures where you go the most. to learn and grow as an entrepreneur.

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