Strategies to Start a Business with Small Capital
Running a business is a dream for most people. Maybe you are
one of them?
Yes, besides being able to manage your business the way you
want, you can earn more than just being an ordinary office worker.
However, who says running a business is very easy? In fact,
on a business trip, it is likely that you will encounter various obstacles,
such as expensive raw material prices, shops that are empty of buyers, and lack
of capital.
Well, for those of you who want to do business but feel that
capital is still an obstacle, here are 7 surefire strategies to start a
business with small capital that you can apply.
7 Strategies to Start a Business with Small Capital
1. Determine the Type of Business and Do Market Research
There are various types of businesses that you can run,
ranging from restaurants, fast food restaurants, minimarkets, barbershops &
salons, and many more. Which one suits you best?
Whatever business you want to be in, you must do market
research first. Moreover, if you start a business with small capital.
Businesses with small capital are usually synonymous with
simple businesses. However, that doesn't mean the benefits are also small
By conducting market research, you will have a better
understanding of the business opportunities that the local community needs,
determine who your business competitors are, as well as get references on how
to manage your business in the midst of competition.
2. Allocate business capital appropriately
The next thing to do after determining the type of business
and conducting market research is to allocate business capital appropriately.
There are two types of capital that need to be considered.
First, capital expenses, namely the capital used to buy
equipment, vehicles, or business equipment.
Second, there are operational expenses, which include
electricity, telephone, rent, employee salaries, and so on.
The right business capital allocation will make it easier
for you to operate your business more efficiently.
3. Look for Good Quality Raw Materials, but Cheap
For those of you who sell food and beverages, raw materials
are certainly a support in business. Without raw materials, what would you
provide to buyers?
If you start a business with small capital, try to find a
supplier who is able to provide good quality raw materials, but at low prices.
You can look it up on the internet, or look for references from other business
friends.
Try to negotiate the price and if necessary, establish a
partnership with the supplier so you don't have to worry about the supply of
raw materials for your business in the future.
4. Use Old Equipment That Is Still Worth Using
One of the expenses that you can suppress when you want to
start a business is to use old equipment that is still worth using. In
addition, you can also buy used goods that are still of good quality.
For example, you can use old tires as seat or table mats,
use old wood to make bookshelves or store decorations, and so on.
Just compare, if you buy all the new equipment, the expenses
for the business will definitely increase. It's better if you suppress capital
from the start so that the budget can be allocated for other more urgent
things.
5. Determine the Business Location
The location of the business in fact contributes a large
amount of funds to business expenses. Moreover, the more strategic a business
location is, the more expensive the rent will be. This is also an obstacle for
many novice businessmen.
If you are starting a business with small capital, why not
just open a home business? For example, you love to cook, then the right
business is to open a caterer.
Or, you want to sell bread. Why not put a display case in
front of your house and sell your homemade bread?
Don't forget to offer the products you produce to your
neighbors. If the taste is satisfactory, it is very likely that they will
promote your homemade food to others.
Who knows, initially it was just a home business, later you
could rent your own shop in a more strategic place?
6. Is it necessary to recruit employees?
The answer to the question above actually depends on your
ability to run a business.
To start a business with small capital, it's a good idea to
rely on your own abilities first to run a business. Because, recruiting
employees is the same as spending more money to pay their salaries.
If you can afford to run your own business without anyone's
help, why not give it a go first? If it is less efficient and you are confused,
then you think about recruiting employees to help you.
After all, later on, as your business grows rapidly, you
will also need assistance personnel who can help you manage your business so
that you can get multiple benefits.
7. Promote Through Social Media
If you don't have an extra budget to advertise on
billboards, banners, or other advertising media that costs quite a bit of
money, why not take advantage of social media?
Don't forget, you can also optimize Instagram Ads to attract
new customers
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