How to start a business with little money

If you want to know how to start a business with little money, here we show you in six steps how to achieve it using the right strategies. Continue reading!

Has the idea of ​​having your own business been on your mind lately? Maybe it’s time for you to follow that entrepreneurial instinct and get to work!

We know that something that stops many is the lack of financial resources, that’s why here 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.

Starting a business with little money, is it possible?

Sure, you can start a business with little money, so start erasing that idea that you always need a large capital; however, you will need to organize your ideas and the resources you have well, and we are not just talking about money but about your ideas, your real abilities, contacts and other points that will support you when starting a business.

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Some of the first points that you should take into account before starting are the following:

• Define your . In addition to creativity, you need a well-founded idea that can become a business plan to be viable.
• Analyze your actual budget. If it is limited, you should take care of it and making one will be of great help even if your capital is not much.
• Define your target audience. Define which market segment you are going to and what their needs are, always think about how you will make your offer attractive and how you are going to get customers.
• Create a . All of the above can be reflected in a work plan in stages to achieve objectives in different periods of time.

These are preliminary steps to start a business with little money because you must be sure that what you invest is used in the best way. Now we tell you how to undertake in six simple steps.

How to start a business with little money in 6 steps

To know how to start a business with minimal investment It’s no secret or mission impossible. Here we show you how you can achieve it through these steps. Take note!

1. Start with what you have
2. Build a business model
3. use your connections
4. make a business plan
5. Define a budget and a goal
6. Take advantage of all channels

Below we detail a little more each point to avoid doubts.

1. Start with what you have

There is a (false) belief that the most important thing for a business 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. Do 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 the human, creative, financial and intellectual resources we have when planning our venture.

To examine these resources in depth, there are a few points to keep in mind. Take a pen and paper, and write down everything that comes to mind as you read each of the following questions:

1. Skills: What do you know and can you do?
2. Experience: What did you do before that could serve you today?
3. Knowledge: What do you know better than others?
4. tangible resources: What objects and tools do you have that could be useful?
5. connections: Do you have acquaintances who could help you in any way?

Don’t limit yourself, the idea is that you end up with a long list that will later be used to create different combinations, until you find the right one 📝.

Get inspired…

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2. Build a business model

A business model could be defined as how a company creates, captures and delivers value to those who consume their products or services. The business model expert, , defines it as follows:

A business model is the way a company or person creates, delivers and captures value for the customer.

alex osterwalder

There are three fundamental elements that define a well-crafted business model:

• Cost effectiveness, because the ultimate goal of a business is to generate profit.
• scalability, can be adjusted for use in other businesses.
• repeatability, can be standardized for later replication.

The methodology Business Model Canvas (Canvas Business Model), also developed by Osterwalder, is one of the most used in the world of business and entrepreneurship.

Among the main advantages of the Canvas Model, its clear and simple appearance, the ease with which it can be designed (regardless of the type of company in which it is applied) and the possibilities for reflection that it offers stand out.

In this article we tell you and we also share a downloadable template 😉.

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3. Use your connections

The networking It is very important for new businesses. because the right people could help accelerate sales growth by sharing it with their 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 the expansion of your business.

Learn more…

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4. Make a business plan

Wait, didn’t we already talk about the business plan? Nope! It is super important that you learn to distinguish between a business model and a business plansince confusing them is a fairly common mistake.

The business plan comes after the business model.since it is an extensive and detailed document that contains elements that define the company as a whole.

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 important data.

Although all business plans are different, there is a basic structure that composes them:

1. General description of the company;
2. Vision and mission;
3. field of activity;
4. Products and services;
5. Market definition;
6. Providers;
7. Strategic analysis;
8. Financial plan;
9. Marketing and sales plan;
10. Analysis of the competition;
11. Operational process;
12. Executive Summary.

The more detailed this document is, the better you will be able to define your company’s growth plan.which is essential if you intend to request some type of or investment in the future.

Learn more…

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5. Define a budget and a goal

When undertaking with little money, une rule you can follow when defining your initial budget is: invest only what you can lose. It may sound extreme, but you should prepare for all scenarios. With this mind setyou will be keeping flexibility and adaptability, two essential characteristics for any entrepreneur.

Setting yourself a measurable medium-term goal (3 to 6 months) will help you be realistic when reviewing the results and determining if the plan is working or if any adjustments need to be made.

It probably goes without saying that stick to the established budget and focus every effort on achieving the objectiveare actions not only important, but fundamental to a good start ✨.

Learn more…

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6. Take advantage of all channels

If your small starting budget doesn’t include advertising costs, don’t worry! Take advantage of all the dissemination channels available to you to publicize your brand.

The clearest example is the . Do not forget that 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 with your brand.

You can also create a blog to reach your audience through content marketing.

Another option is to share a glimpse of your products and services with everyone you know and, in turn, ask them to share it with their acquaintances.

3 business ideas to start with little money

now that you know how to start a business with low capital, we share some business ideas for you to start undertaking from now on. The best of all is that in each of them you can apply the points that we saw previously.

1. drop shipping
2. Consultancy
3. Services

In case you want more context on each of these proposals, you can find more detail below. Keep reading!

1. drop shipping

In short, the drop shipping consists in through an online store. How? The seller acts as an intermediary between the supplier and the buyer.

Let’s take an example:

First act: Mariana opens an online store, contacts a supplier that sells pet supplies, and chooses some of the products from their catalog to sell in her 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 attentive throughout the process to ensure that her client 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 the e-commerce platform charges her for having her store and her salary. The other expenses will depend 100% on your sales.

Although dropshipping 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 impeccable organizationit is possible to succeed with dropshipping!

Learn more…

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2. Consulting

Your knowledge and experience are two of the most valuable things 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 will be able to grow as demand increases. In the beginning, you may just need a computer and spend some time 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 on sale via . This will help you expand your possibilities and grow your business without having to invest a fortune in it.

At Tiendanube we have plans that adapt to all needs and budgets, we invite you to find the ideal plan for you and for 30 days.

For example, if you worked for a long time in the financial area of…