So, you have been toying with this great business idea in your mind for a while. You know it’s a service or product that people would want. You also have the business plan almost ready. But, what’s stopping you then? Of course, the lack of funds!
Countless amazing business plans remain just as ideas because of the lack of funds to get it off the ground. But, in the year 2020, let money not be an excuse for not giving wings to your dreams of becoming an entrepreneur.
Here are the top eight ideas that will help you to start your business by investing in the minimum capital in 2020.
Building the business around what you understand
It is not a good idea to get into unknown territory when you are aiming to start a business with the minimum capital. Base your business on the knowledge that you have and the skills that you have acquired. Relying on outside sources should be kept at a minimum at the onset of the venture. When the business is based on your expertise, you have the option to eliminate outside consultants and assistants.
Besides, starting a business means you already have so many things to handle and many new things to learn. It’s better not to start absolutely from scratch by taking up a business about which you know nothing.
Consider crowdfunding as an option for your startup
Crowdfunding is like taking investments or loans from more than a person at one time.
So, this is how you do it: pick a crowdfunding platform and write a detailed description of your business. Mention everything, right from your business idea to your plans for earning the profits, and the funds that you need. If people on the platform like your idea, they will invest in it with the promise of maybe pre-buying your product or availing your services.
This way, even if you start with minimum capital, you can gain significant funding to keep your business set off with a solid financial footing. Here is a list of crowdfunding platforms to help you get started.
Do not buy everything and start hiring people for your business
Nowadays, you get to avail of a lease for almost anything and everything. So, it’s not like you need to buy every single tool or equipment for your business. When you are a new entrepreneur, you will not be able to qualify for a credit line without personally guaranteeing and co-signing the loan. It is any day better to rent something for, say, fifty bucks rather than purchasing it for thousand dollars. The money that you save this way can be put to other good use in your business.
The same thing can be said about hiring people to work for you. With the number of freelancers on the rise who are ready to work for you at quite affordable rates, there’s no point in hiring permanent employees when you are just starting.
Think about it like this: hiring a permanent employee means having to pay a regular salary, employment benefits, setting up a working space, and so on. Now consider hiring a freelancer for the same job: you pay them as per the work you give them, and they can work for you from anywhere. With an experienced freelancer, you get all the skills you need without it weighing down on your capital.
Use cloud computing and SaaS capabilities
When you are starting with low capital investment, you cannot afford the luxury of buying every single piece of software out there. Thankfully, you can now get alternatives to most of the important business software for monthly fees.
There are various cloud applications that you can use based on a monthly fee. It even lets you scale down or up easily as per the needs of your business. You can also use project management software, sale planning software, accounting software, and more on a per-user monthly payment basis.
Keep that receivable policy in check
If you are planning to start something along the lines of retail operation, then you can skip this point. But, if you are into consulting or are selling products to the retailers, then this is something you’ll have to consider.
There has to be a well-planned payment policy in place for everything to work out just fine. Do you think net -30 or net -15 terms are okay for your business to sail through? Receivables are not to be based on your customers might want. Those are somewhat dependent on what makes your operations successful.
Consider opting for a co-working space to start the business
Co-working spaces are shared workspaces that you can get at a much cheaper rate compared to having an actual physical office. You get all the amenities usually present in an office, like meeting rooms, desks, kitchen, coffee, cafeteria, and the likes. But, you don’t need to rent an entire floor for that purpose.
Small teams and start-ups who are running on a budget can take advantage of the flexibility offered by a co-working space. Besides, you will be in a space where there are all kinds of entrepreneurs working on different kinds of projects. So, there is a greater scope for networking and developing partnerships.
Try to secure loans from the microfinance providers
It’s difficult for startups to secure a bank loan, but there’s always the option of micro-financing from other institutions. The microfinance companies are made to offer loans to the ones who find it difficult to get conventional bank loans.
So, if you have a credit rating that is good enough and you fully understand what the microfinance provider is offering to you, there’s no harm in getting the added capital from there.
It’s time not to let that idea remain only in your mind or on the notepads at your home. Let’s go out there and let’s make it happen!