How Can I Start A Business With Very Little Capital?
Most people love to glorify those entrepreneurial businesses that started off with a few hundred rands and today are big names in the business fields. Although that’s great and genius for them, the reality is if you run out of money your business venture may be done.
The big take away from those entrepreneurs who started their business with a few hundreds and are today coining it. Is that it proves it can be done that a business can be started with little capital, a whole lot of ingenuity on the entrepreneur side, coupled with a bit of relentlessness and restlessness.
Here are a few tips to get you started.
Keep your costs low
At the start of your business don’t spend money unnecessarily unless you know it’s going to grow your business. Don’t have high inventory or labour expenses as your business cash flow is gold.
Be prepared to take little or no salary for the first year of your business, even while paying employees. For the first few years of your business, you may be the lowest paid employee. Get your personal expenses down to as close to zero as you can.
Don’t assume you have to buy everything for your business.
Leases are available for almost everything. If you can rent a piece of equipment a month versus buying it when you’re starting out you can use the extra money on something else.
Hold off on opening a physical office space
Unless you absolutely have to office space is expensive. It’s only necessary at times if you need to meet customers in your office or have a physical retail or manufacturing space. If not don’t open an office. Rather work from your home.