How to Start a Business with Minimal Investment/Capital

According to a survey by the University of Phoenix, nearly two in five Americans hope to own their own businesses in the future. Nearly 52% of the workers, in their 20s, want to start their own businesses and that includes us!

Start Your Own Business!

There must’ve been at least one time when an idea occurred and you wanted to work on it, start a business and be your own boss!

In 2016, 25 million Americans were starting or already running their own business. Ideas remain ideas and don’t get past the planning phase, because they don’t have enough capital or investments to start. Starting a business doesn’t require large amounts of money, 69% of U.S. entrepreneurs start their businesses at home. The founder of Subway, Fred Deluca, borrowed $1,000 from his friend to start “Pete’s Super Submarines” which was later renamed, “Subway”. So, DON’T WORRY!

Following the simple steps below will help you start your own business in the best possible way.

1. Put Your Idea on Paper

The first thing you should do as soon as an idea comes into your mind is to pen it and ask yourself,

Will this idea solve an existing problem?

Write down all pros and cons of executing your idea. Be tough with yourself because an investor is going to be tougher!

2. Do Market Research

$42% of startups fail because there is no need for that product/service in the market!

Market research is the most crucial step towards having a successful business in the future, you must spend more time planning your business than working on it.

Do thorough research on the subject, all the if’s and why’s and how’s should be figured out because there is no turning back! Identify your target market and drive through until you fully understand your customer needs, market demand, selling capacity, etc.

3. Business Model

The business model is a conceptual structure that elaborates on how a company operates and creates revenue and vision statements. In the business model, the main question you need to ask yourself is,

What makes your product different?

There are more than 20 different business models, you should consider factors like target market, the value of your solution in the target market and its validity, and the distribution channels, to select the perfect business model for your product. You also need IT policy and procedures for your business.

4. Get a Second Opinion

Suppose, you went to a doctor, and he diagnosed you with blood cancer. What is the first thing you’ll do?

Get a second opinion!

Telling people about your idea before registering isn’t smart, but getting a second opinion can make the difference between a successful and unsuccessful business. Make sure that your advisor is reliable. The second opinion will allow you to view your idea from a totally different perspective.

5. Small Business and Equity Investments

In small businesses, equity investment (investing your own money) is a clever idea. It allows you to re-invest the profit, and grow over time without the burden of debt payments. You don’t need big investments; a business person can turn $1 to $10 and more.

It will take time but you’ve eliminated the risk of default, and if the startup fails, you don’t have to worry about credit risks and start all over again.

6. Find Investors

Some businesses, like real estate, require millions of dollars to start. The best way to raise such an amount is by finding investors. Individuals or corporations that invest in companies in the form of capital and expect a financial return in the future are called investors.

Give the investor someone they can believe in, give them a reason to get behind your idea, give them a solid business model. It’s difficult to convince someone to give you their money, so before presenting your idea to an investor, complete your homework, and be prepared!

7. Sell Shares

Shares also known as stocks, are right of possession in a company or financial asset and they are used to raise capital. You can sell shares of your company on The Securities and Exchange Commission (SEC) to raise capital. but there are few things you need to consider beforehand,

1. Does anyone want to buy your share?

2. If yes, then can you find someone who wants to buy it?

3. Are you allowed to sell them?

Dividends and increase in the value of stocks over time, are the two main reasons why investors buy stocks. The Stock Exchange is a huge market and requires experienced advisors to succeed.

8. Avoid Unnecessary Expenses

A smartly devised budget is your friend. As a startup, make sure that you never spend 2 dollars where 1 dollar can do. Create a budget, stick to it, and avoid unnecessary expenses.

9. Social Media Marketing

In the 21st century, it is impossible to be unfamiliar with social media. 70% of Americans have profiles on at least one social networking site.

Social media marketing is the most cost-effective and efficient marketing techniques. A startup is always looking for ways to cut costs, social media marketing is a gem mine if you use it smartly. Statistics show that 71% of consumers who had a good experience are likely to recommend the product/brand further to their friends and family. Bill Gates stressed the importance of online business,

If your business is not on the internet then your business will be out of business

10. Think Like an Entrepreneur

An entrepreneur is a person who works from scratch to the very end, all by himself.

There are 582 million entrepreneurs in the world. Entrepreneurship is a spirit every start-up must have as it helps them get ready to working tirelessly and not give up. Once you’ve started, the first few years are crucial and no one else can work with the enthusiasm you have for your own business.

11. Get Ready to Work Round The Clock

Starting a business is not a piece of cake and before you get your hands dirty into this pool. Be ready to work round the clock. A brand new business requires steady attention. There will be a time when you will earn more than you expect but in the words of Muhammad Ali Jinnah,

work, work, work and work ceaselessly.

The world of business is bigger than we think it is and there is always a way. All you need to know is, where and how to make it work because that’s what it takes to start a business.

BEST OF LUCK for your journey ahead!

first you learn and then you remove the L.