How to start a business with little capital

How to start a business with little capital? That is the question that many people who do not have a job or do not feel satisfied with their current position ask themselves. Having a business of your own has many advantages, including above all that you become your own boss, but sometimes we go back thinking that we need an excessive economic investment. However, this is not always the case, and here we give you some tips on how to start a business with little capital.

Steps to follow:

1.Set up the home office. Think about whether you really need to have your own place in the city center to serve customers or to perform your administrative tasks. If it is not a commercial establishment, it is most likely that at first you can use your own home as the headquarters of the business, reserving any of the rooms as an office or meeting room.

2.Start with an online store. If you plan to dedicate yourself to a purely commercial activity, you can value working as a virtual store, in which the Internet is your showcase to sell to the whole world, paying only a minimum part of what it is worth to keep a place (rent, electricity, water, insurance, alarm, furniture, etc.). There are many pre-designed services to install your own online store on a website you own, and the costs of hosting a server and your own domain are very low. If you do not know how to do it and you want to have a hundred percent professional result you can also ask a computer and a designer for a quote.

3.Rent instead of buying local and household goods. If you need to have a physical presence with a commercial premises or an office, you can always resort to rent instead of making the large initial investment that involves buying everything in property. Almost everything can be rented, not only the premises, but also the furniture and working instruments.

4.Agreements or deals with suppliers. You are in the beginning and you don”t have much to offer, but your suppliers are also interested in growing professionally to have another insured customer. That is why you can reach deals or agreements with them at the beginning, providing them with direct services instead of money in exchange for their merchandise, or setting another exchange time that does not involve you disbursing more money.

5.Franchises If you have a business idea and have a saved capital, but not enough to make all the necessary investment, you can always use a franchise that gives you everything done in exchange for an initial outlay. The amounts vary greatly depending on the type of business and the size of the company, but it”s all a question of asking. You can orient yourself a little by doing a search about it on Google.

6.Advertise on the Internet. Take advantage of the great power of social networks to advertise and reach a large number of people with a very small investment. Currently almost all social networks have tools to advertise directly on them, as in the Google search engine. Take the opportunity to improve the positioning of your website in search engines with SO (Search Engine Optimization) techniques and publish updates and offers in your company”s 2.0 profiles.

7.Look for external financing. If you do not get the savings you can try your luck with the bank, although if the credit does not flow properly you can always turn to family or friends, or look for business partners that provide capital. Especially if it is a company related to CIT, it is advisable to attend sector events in which the business idea can be exposed to potential interested investors (“business angels”).

8.Hire first little staff. Salary spending can cause the business to collapse in the first months, before it becomes consolidated. So at the beginning if it is not strictly necessary and you can take care of that extra workload, you can save a few thousand euros. Value the needs of the company and the total workload well, as well as the type of contract that you can offer and that you really need: full-time, part-time contract, with commission payments, etc.

9.Sell ​​by consignment. If you are a supplier to other companies, try to reach an agreement with your customers so that they sell the product to the final customer, charging them an amount for each sale made. If the business goes back, you can consider changing models, selling large quantities at once, in cash or on credit.

10.List of fixed expenses. If you still do not get the accounts, make a list as detailed as possible of all the expenses you plan to make at the beginning and go sorting them from more to less important. Start crossing out the last ones on the list and ask yourself if the business can keep running without every item you cross out, and keep doing it until you are left alone with the strictly essential expenses.

11.Choose the type of business well. There are many trades and professions of the services sector that you can exercise without just investing in material: home assistance, communication, crafts, cultural entertainment, private lessons, sale of second-hand items … Think about it, surely there is something that you are it works well and it can also give you an economic return.