12 keys to starting a business with little money

Starting a business is an exciting task. Having economic autonomy, seeing our dreams grow, and pursuing what we truly love is a great satisfaction in life. Still, the business consolidation process can be complicated if you don’t have a plan.

In addition, many entrepreneurs do not have a large amount of money to invest or have not found support from investors. While this can be a demotivator, it is also an opportunity to look for financially sustainable ways to start a business. And today I’m going to talk to you about how to do that.

I will show you these key ideas to start a business with little money.

1. Choose an activity that you feel committed to

You’ve probably heard an entrepreneur say that his main goal when starting a business was to follow his dream. Actually only 31% of businesses They are driven by passion for business, with more than 20% doing so due to unemployment and 47% due to dissatisfaction with the world of work.

Although there is no right reason to start a business, it is recommended that you choose a business project that you feel committed to; especially if you invest your money in it. Think about what the values, mission and vision of your project are and choose the thing that is relevant to you.

2. Start with plans, not ideas

In the United States alone, the average 4.4 million businesses, while just over 1.2 million are created in countries like Mexico. These numbers may seem encouraging, but we have to reckon with it now 80% of these businesses don’t last more than 5 years and more than half close their doors before the second year.

One of the main reasons behind these numbers is that businesses often appear as dreams or ideas, but not as plans. If your goal is to invest in a business, it is best to understand all the relevant aspects of the market so that you can offer a product that is interesting to the public and that you know your numbers perfectly.

3. Prioritize creating a solid business plan

Hand in hand with the previous point, we can talk about the importance of creating a solid business plan. For example, you may have a great idea, but if you don’t know how to make it, the costs associated with commercializing it, the business model you will use, and the technology requirements necessary to achieve your goal, you are most likely to fail.

Before you start selling, I recommend that you analyze your goals and build a workflow that fits your budget. This plan must be structured into steps to be followed and have a detailed plan of the stages of growth of your business. This way, you’ll know where you are at any given moment and have a way to measure the success of your business over time.

4. Become an expert in your field of interest

To achieve the previous point, you have no choice but to study. To make sure your business will work, you need to know all the variables involved in its development. This includes the market, your competitors, innovation trends and even financial flows.

Fortunately, there are free training options on platforms such as Edutin that can help you dominate the market and start a business with the most important thing an entrepreneur can have: knowledge.

5. Think about people and not just money

Another common view of business is that the purpose of business is to produce profit. And while that’s true, it’s not just about making money, it’s about promoting customer satisfaction. If you are just starting out and your investment capital is not very high, It’s hard to break into an industry with a product that you can sell in large volumes or at high prices..

Therefore, I recommend not focusing on how to make a lot of money and instead plan how you can positively influence the client’s mind. If your business is small, then the goal will be to start growing through a value proposition that meets people’s needs.

6. Create a healthy business ecosystem

Entrepreneurship is not the only thing in the world. Ultimately, every business requires the existence of suppliers, employees, customers, and even competition to survive. The important thing is that you choose those members of your ecosystem who really contribute to the achievement of your goals.

For example, if you have the money to hire one employee, it’s best to evaluate which candidate best fits your values ​​or who has the best skills to achieve your goals. Likewise, if you are going to choose a courier service provider, it makes sense to join forces with a local business that offers good quality service, rather than using international logistics companies. Think of these costs as an investment not only monetary but also social.

7. Look carefully at the costs

One of the biggest headaches for entrepreneurs is operating costs. Payment of rents, wages, machinery, licenses, taxes and supplies may involve large capital investments for which payments will also be submitted regularly. That’s why you need to take all these costs into account when planning.

If you have few resources, it is extremely important that you don’t invest everything in starting your business. Even if you have a well-crafted plan, the truth is that conditions external to your company can prevent you from achieving your sales aspirations. Set aside a portion of your available capital to cover operating expenses and plan required payments months in advance.

8. Take on debt responsibly

In some cases, debt is the only way out to start a business and take care of the expenses arising from your activity. However, poorly managed debt can put your business in crisis. Suppose more than 22,000 companies close each year in the United States just because of excessive debt.

But don’t misunderstand my words: having credit is not bad. On the contrary, it can be part of a good financial plan and is highly recommended for starting a business. The important thing is that you are well set out how you will cover recurring loan or financing payments and ensure a medium-term repayment schedule to avoid losing all your start-up capital and committing your company to long-term debt.

9. Look for support programs for entrepreneurs

Another good way to start a business with small funds is to take advantage of business support programs offered by banking institutions and government authorities. For example, companies like Santander They offer scholarships to entrepreneurs and even organize competitions for innovation and entrepreneurship.

From the government level, it also uses inclusive programs that help companies to establish themselves in the market. If you use these platforms, you can participate in business fairs or submit your articles to a sales page corporate. Although these supports are not direct cash funding, they will help you better qualify for today’s markets and have the support network necessary to succeed today. All this for free.

10. Do more with digital media

Today, companies that do not have a good digital presence risk not connecting with customers. Even if it’s a local business, your company may not reach your audience if it doesn’t have a website or if it’s not on social media.

One way to enter the digital world is to create a free websites. This allows you to start getting familiar with the medium and have an online presence without sacrificing resources. in addition you can link your own phone number as a business account on WhatsApp. This way you create a good brand impression and have different ways for consumers to contact you.

11. Choose powerful but economical tools

While we all dream of having the best packaging, state-of-the-art software, and state-of-the-art AI programs to automate processes when starting a business, the truth is that it can be very expensive and not necessarily conducive to business growth in the early stages. your business.

That’s why I recommend trying with the options free web hosting or freely available office programs such as those from Google Workspace. These digital resources, in addition to not being an additional cost to your company, will help you digitize your processes and start the process of automating tasks that can take a lot of time to do manually.

12. Look for organic growth

Reaching the public through traditional media such as TV and radio advertising or urban media can be really expensive. Therefore, I recommend taking advantage of one of the main advantages of social networks and the Internet: that they are free. An organic growth approach can help you keep customers coming to you, so you don’t have to invest too much in advertising.

For example, you can create a blog and use an SEO (search engine placement) strategy to get yourself noticed on the Internet. Or you can create viral or informative content for social networks that motivates the customer to follow your company.

Of course, sometimes you can rely on some advertising running platform or in a postal service that helps you reach the client. Both strategies, when they go hand in hand, serve to make your marketing investment more balanced and reach the customer through more than one medium.

With all these tips and key aspects, you have everything you need to evaluate a business project. Remember that it is important to invest your money wisely, but also your time and effort. If you do it this way, business success will be in your hands.

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