When carrying out a business idea, we know that something that stops many entrepreneurs is the lack of financial resources. So today we are going to give you some tips on how to start a business with little money. Yes! It is possible and more common than you think.
the 6 steps to start a business that we are going to explain in this article are:
1. Start with what you have
There is a (false) belief that the most important thing for start a profitable business It is to have a large budget to invest from the beginning, but what to do if you do not have it? There is a famous phrase from a renowned American tennis player that could fit perfectly in this situation:
Start where you are. Use what you have. I did what you can.
Arthur Ashe
And it is that, although it seems obvious, sometimes we focus on a long-term goal, when what we should be doing is analyze resources human, creative, financial and intellectual that we have at the moment of planning our enterprise.
To examine these resources in depth, there are key issues you need to consider. Take paper and pencil and write down everything that comes to your mind when you read each of the following questions:
- Skills: What do you know and can you do?
- Experience: What did you do before that could serve you today?
- Knowledge: What do you know better than others?
- tangible resources: What objects and tools do you have that could be useful?
- Contacts: Do you have acquaintances who could help you in some way?
Don’t limit yourself. The idea is to put together a long list that will later be used to create different combinations, until you find the right one.
In this process, it can be very useful to think about what your (minimum viable product) would be like, that is, the fundamental characteristics that your product will have for a first launch. Then it can be improved!
We bring you an idea:
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2. Build a business model
A business model could be defined as the way in which a company creates, captures and offers value to those who consume its products or services.
There are three fundamental elements that define a well-crafted business model:
- Cost effectiveness, because the ultimate goal is to generate utility.
- scalability, it can be adjusted for use in other parts of the business (or in other businesses).
- repeatability, can be standardized for later replication.
The methodology Business Model Canvas (Business Model Canvas), developed by business model expert Alex Osterwalder, is one of the most widely used in the world of business and .
Among the main advantages of the Canvas Model are its clear and simple appearance, the ease with which it can be designed (regardless of the type of business) and the possibilities for reflection that it offers.
In this article we tell you and we also share a downloadable template so you can create it today!
3. Use your contacts
The networking is of paramount importance for new businesses as the right people could help accelerate sales growth by sharing it in your network of acquaintances.
Collaborations with other brands, word of mouth, and, with luck, your business could reach the ears of an investor interested in being part of its expansion can also arise from this.
4. Make a business plan
Wait, didn’t we already talk about the business plan? No, it is super important that you learn to distinguish between a model and a business plan, since confusing them is a fairly common mistake.
The comes after the business model, and it is a long and detailed document that contains elements that define the company like an everything.
In it you will find: the description of the company and the products or services it offers, the , the objectives of the company and its plans to achieve them, the calculation of resources necessary to carry out its operations, among many other data.
Although all business plans are different, there is a basic structure that composes them:
- Table of Contents
- Business Definition
- Industry Overview
- Market analysis
- competitive analysis
- Marketing plan
- management plan
- operation plan
- Evaluation and financial plan
- Conclusion and recommendations
- Executive Summary
The more detailed this document is, the better you will define your company’s growth planwhich is essential if you intend to request some type of financing or investment in the future.
5. Define a budget and a goal
A rule that you can follow when defining your initial budget is: invest only what you can lose. It may sound extreme, but you have to prepare for all scenarios.
With this mind set you will be maintaining flexibility and adaptability, two essential characteristics for any entrepreneur.
ask yourself a measurable goal in the medium term (3 to 6 months), it will help you to be realistic when reviewing the results and determining if the plan is working or if, on the contrary, some adjustment needs to be made.
It is important to remember that stick to budget and focusing every effort on achieving the goal are actions that are not only important, but fundamental for a good start. ✨
6. Take advantage of all channels
If your initial budget doesn’t include advertising costs, don’t worry! Take advantage of all free broadcast channels that you have available to publicize your brand.
The clearest example is the social networks. In this case, the quality of the content and the usefulness that your audience can find in it, are two very relevant characteristics to generate engagement (interaction) with your brand.
you can also create a blog to reach your audience through the .
Ideas to start a business
“What business can I start?” Big question! Here we share a list with some business proposals to undertake:
offer consultancy
Your knowledge and experience are two of the most valuable characteristics you have and the best thing is that you can monetize them through consultancies.
One of the advantages of this type of business is that it can grow as demand increases. At the beginning, perhaps only a computer will be enough and invest a good time in developing a marketing strategy to publicize your services.
To increase your reach and, therefore, your sales, you can create your own ebooks or mini courses and put them up for sale through . This will help you expand your possibilities and grow your business without having to invest a fortune in it.
In Tiendanube we have plans from AR$ 599 that adapt to all the needs of a business. you can.
For example, if you worked for a long time in the financial area of the gastronomy industry, you probably know what the main obstacles and problems that a restaurant faces are. Then, offer a financial consulting service to food business owners who are just starting out, it could help their business prosper.
Sell services online
Your skills and time can also be monetized! There are many forms of . The key is to find that midpoint between what you are passionate about and what you know how to do better than the average person.
When you have defined a list of services to offerFind the right people to make them known.
Suppose you are passionate about letteringthat is, the art of drawing letters by hand in a creative way, so why not start a business with that?
Exhibit your work on your social networks and always focus on your target audiences. For example, if you are interested in doing lettering for event invitations, show the versatility of your paper creations. if you prefer to do lettering for marks, then use objects that you have at your fingertips, such as canvas.
This is just an example that can be applied to any industry and type of service you can offer.
Here we share more tips:
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Do drop shipping
In short, the drop shipping consists in sell out of inventory through an online store. How? The seller acts as an intermediary between the supplier and the buyer.
Here is an example:
First act: Mariana opens a virtual store, contacts a supplier that sells articles for pets and chooses some of the products from their catalog to sell in your e-commerce. Before she can start offering the supplier’s products, both of them must reach an agreement to define if Mariana will pay him a monthly fee for all her sales or if she will pay him each time she sells a product.
Second act: Pedro comes across Mariana’s store and decides to buy a leash for his dog. When making the purchase, Mariana receives a notification and must contact her supplier to request that she send the product chosen by Pedro to the indicated address. She must be vigilant throughout the entire process to ensure that her customer receives her purchase in a timely manner.
As you can see in the example, Mariana’s initial investment is minimal. Among hers are, probably, the fee that she charges him for having her store and her salary. The other expenses will depend 100% on her sales.
Although it seems like a very simple business model, it is important to clarify that it has some disadvantages, such as high competition, low profit margins, and lack of control in case there are any problems with the shipment.
But, with a well-defined niche, a professional supplier with experience in this model and an excellent organization of the impeccable business, it is possible to succeed with the drop shipping!
Do you want to learn more about this topic? Then don’t miss this post:
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With a solid foundation and a concrete plan, it will be a matter of time and good execution for your business to become profitable.
Have you convinced yourself? start your business And do you want to do it online? Then do not miss the opportunity to start today. , explore all the functionalities offered by the platform and start selling online.
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