The good news is that not every enterprise demands huge
capital investment. You only have to look at the petty trader selling recharge
cards, fruits and vegetable products around the corner.
Her start-up capital is lower than you think same applies
to many small business enterprises. You are brimming with ideas and ready to
take on starting your own business.
On the surface finance seems to be the major challenge
blocking your ambition. Starting a small business venture with little or no
capital is possible.
All that is required is proper planning, size of the
business and other resources.
Why
is Money Important to Start up Companies?
Starts up companies face many legal fees, location,
supply, production and service related challenges. These aspects of running a business take up
lots of money especially location, staff and operational costs.
However, every company or business has different cash
requirement to start operations. No two companies have the same start up cost
even if they run similar operations.
Businesses need different impute depending on the company
structure and business template. The larger the company gets the larger the staff
strength to accommodate a growing customer base.
Low starts-up companies include home based businesses,
one man businesses and enterprises. The smaller the operation the less capital is
needed to start and run the business.
Things
to Consider before Starting a Business Venture
There are many things to consider when starting a
business venture. Let us first concentrate on the funding and financial aspects
of starting a business.
The first thing to consider is getting appropriate
licensing for your business venture. There are many licenses and permits needed
to run any business ventures.
The size of the operation is irrelevant if you are a
retailer, wholesaler, manufacturer or service oriented business. Getting legal
recognition lends legitimacy and cover for your business venture.
The cost of licensing defer according to the type of business
model. Getting a license to lift petroleum products or open a petrol station
will be definitely higher than opening a barbing saloon.
Same applies to licenses for GSM mobile companies
compared to small used phone outlets. No matter the size of your operation you
need permits, licensing and paper work to start your business empire.
Supplies
Some business ventures are supply based and need lots of
it to function properly. Running a wholesale business is totally dependent on
the amount of supplies in you warehouse.
Supply businesses tie down lots of cash in stock and inventory.
Therefore you need to provide adequate
cash for supplies. A small business owner looking to start a wholesale business
knows he will invest a huge chunk of his cash on supplies.
Office
Space
Office space takes up lots of money especially in high
brow areas. It takes up huge amounts of your initial capital investment
including utilities.
You need to choose your location carefully because
location can make or break a business venture. A bad location is like signing
the death warrant of your business even before it commences.
The location
depends on the goods or service you want to render. Try to locate your business
in an environment that needs such services. Other considerations when locating
your business are the financial capability of the neighbors like low, middle of
high net worth individuals.
You can’t locate a luxury store in a slum and expect to
make profit. Locating it in such an environment will only attract the wrong
type of customer’s (robbers). Therefore do your visibility study before
spending your hard earned money on a bad location.
If you are all about reducing cost to zero start your
business venture from home. If the business template permits homestead business
then situate it at home.
Starting a home based business helps you keep your office
space rent and subsequently more cash in your pocket.
Furniture
and Office Equipment
Furniture and office supplies are the next important step
in setting up your business venture. Your business venture needs to look
presentable to attract customers..
There is nothing more damaging to a business than tacky
furniture or bad aesthetic. Spend on good furniture and office supplies to show
a level of seriousness.
If you don’t know how to create a good working space hire
an interior decorate. Why do you
think banks spend so much making there banking halls pleasing to the eye.
The first impression a customer gets about your business
is very important.
Association
Costs
Today almost every professional job has an association
that guides their work ethics. There are associations for artisans, lawyers,
bricklayers, doctors and landscapers.
Find out the fees and subscribe to the relevant
association as a member. Associations work on monthly or yearly fees for
members depending on their constitution.
The good part of joining an association is update on
current practices, legal aid and networking.
Operational
Expenses
Operational expenses cover daily, weekly and monthly
running cost of your establishment. The costs include utilities, equipment
servicing, staff wages, accounting and management costs.
Getting a good grip on operational cost is the line
between profit and loss. Proper inventory, accounting and statistical analysis
of daily cost will give you a clearer picture of the amount involved.
Legal
Fees
Litigation will come no matter how careful your
organization operates. There are unforeseen circumstances that mitigate such actions.
Legal fees might incur due to consultations, retainer, advice or litigation.
Having legal backing and documentation based on services
or product is very important. Factor the legal fees into your overhead start up
capital.
Employees
What type of business venture are you planning of
running. There are some businesses that require lots of staff while others are
one man businesses. The more staff you hire the more capital you need in
salaries and remunerations.
The fewer your staff the less money you spend on
salaries. The educational and professional experience of staffs needed to run
your organization also impact on the paychecks.
Highly professional staff will attract huge salaries for
their expertise. If your business uses the outsourcing
model then contractual agreements are necessary.
Reducing your needs is an effective way of lowering cost.
By working on a business model that requires very little staff saves lots of
payroll money.
Take
your Business Online
If you are seriously cash strapped then take your
business online. You can launch a Wordpress website/blog including hosting and
domain name with less that $150 a year.
The website will stand as your storefront offering your
local community or the entire world your products or services. Apart from the
initial costs the only additional costs include promotions and marketing.
The website should be well designed easy to navigate and
functional. You can integrate checkout and other things to enhance
participation or patronage.
If you have no idea about building a Wordpress site you
can Lean how to launch your Wordpress blog on Bluehost. Owning a website for your business reduces the initial
cost of renting an office space.
How
to Get Additional Funding for your Business
Funding is very important in any start up business venture.
There are a few sources you can explore such as bank loads and cooperative
loans.
Other loan sources are partnership, venture capitalists
and family. Join contributory groups or sell private equity in your start up
company.
Pricing
Pricing your goods appropriately will guarantee loyal
customers. If you are into manufacturing or retailing try to offer the best
prices.
You don’t have to make all your profit at the expense of
customers. You can use proper pricing to regulate costs.
Marketing
Marketing takes lots of money to get your business
visible. You need to include marketing in your budget when stating a business
enterprise.
Look for cost effective and resourceful marketing
strategies to gain customers.
How
to Save Start-up Costs
There are lots of ways to save costs while starting a
business venture.
You can save costs by working from home and create a
small work space. Another method is doing the job yourself and gaining more
experience.
You can source cheaper supplies by buy in bulk to save
and reduce costs. Discard expensive product lines and concentrate on cheaper but
good products.
You can save cost by using online resources like blogs,
websites and eCommerce websites. Other money saving alternatives is free
classified advertisement and word of mouth.
Big companies save cost by outsourcing their non core
products and services. Try to choose cost saving marketing strategies to
promote your business venture.
The bigger your operation the more money you are likely
to invest in your business. Seek legal and professional advice in cost saving measures
before starting your business.
How to Start a Business with Zero Capital
Start-up
Capital
Most business ventures need capital
investment to start-up but with some exceptions. It is true that many
businesses fail because of limited funds which affect its growth and
productivity.
However, having a good brand,
quality service, and passion for the job usually translates to success and
growth.
So what are the options available to
the large number of unemployed people? The only viable option is to become self
employed and take advantage of business opportunities around where you live.
Finance is a very important issue for
a start-up company. Despite the challenges, there are small businesses ventures
you can start with zero capital investment.
Listed are a few businesses that
need little or no capital investment.
Printing
Business
Yes, you can start a printing business
without funds. You do not need heavy machinery and equipment to collect
printing jobs.
Jobs such as anniversary
celebrations cards, obituary posters, political campaign posters, handbills, and
complementary cards. What you need to succeed in this business is knowledge of
how to calculate the amount a customer pays for your service.
Established printing firms have all
the machines you need and charge freelance printers for each step of the
printing process. The printer’s job is to calculation the entire printing such
as the price of paper, card, typesetting, plate, impression, and cutting.
He collects an advance sum from the
customer uses it to buy the items needed and pay the established print firms
for their services.
Estate
Agent
Estate agents sometimes get a bad
reputation but honest agents get recommendations from happy clients. Starting
as an estate agent is about connection and networking with other agents.
You need to register as an estate
agent with your local agent associations. Registering is not expensive and you
get to meet other agents and network.
An agent’s work is to sell or Let a
house, property, or land for a commission. The agent either gets a commission
for finding a property for his client or an agreed sum on certain deals.
All you need to become an estate
agent is lots of networking and a steady client base. If you are honest and
hard working you get recommendations and lots of money.
Types
of Business Ventures
Which
business do you prefer?
- Estate agent
- Sale representative
- Online business
- Used car broker
Sell
your Creativity
Some of us are very creative when it
comes to paintings, sketching portraits and handcrafts. You can focus on your
special talent and create beautiful craft works or paintings.
You can sell you creation to
supermarkets, private individuals, friends, and family. Many creative people earn
a decent wage selling their craft online.
Once you have the basic tool what
limits your success is your business skills and creative outlets. You can sell
your craft in open stalls or advertise them at eateries or e-Stores.
Here are a few Best art and craft business
ideas
Sell
used items
Used items up for sale | Source
Start
an NGO
Non Government Organizations focused
on a niche area of specialization to offer service to the people. NGOs are
service based and should be run with passion.
Such businesses rely on donations
and support to thrive especially if they have good programs. You can build a
website highlighting what you do with proof of performance.
There are NGOs that have to do with
widows, motherless babies, HIV disease, kickback malaria and so on.
Warning,-only start an NGO if you truthful want to offer selfless service to
your community.
Learn all you need to know about starting an NGO business enterprise
Selling Used Items Online
The new online stores have made it
easy selling used stuff online. You no longer need a business premises to do
good business selling stuff to customers.
All you need is to use free classified
online stores like OLX.com to sell any items. To successful sell items on online
first take a few pictures of the item add detailed description, and list a
reasonable price.
Interested buyers contact you and
you make the deal either face to face or via email or courier service. Selling
items online is very lucrative when done properly and it costs next to nothing.
Company
representative
 |
| Company representative | Source pixabay |
Company
Representative
You find company representatives
everywhere selling all kinds of items on the streets, in offices and at your
doorstep. Being a company representative is very hard work and the
remunerations are usually based on sales commission.
You make money only when you make a
sale. There are literally thousands of companies looking for sale
representatives from pharmaceutical companies, herbal companies, children's
items etc.
Entertainment Business
Are you eloquent in speech, then you
can become a master of ceremony? Such jobs attract large payouts especially if
you have carved a brand or niche for yourself.
The bigger your brand the more money
you can charge and the more occasions and business opportunities you get. All
you need is loads of confidence, nice working cloths, and a knack for
entertainment.
You can even add event planning,
ushering guests and catering to your resume.
Start
an Online Business
The easiest way to start a business
with zero investment is online business. You can do various online businesses
such as blogging, article writing, and selling used items.
Other online business is building
websites for clients, Apps development and sale, writing ebooks and freelancing
Business
Ventures you can Start with Zero Capital
1 Become a blogger
2 Write articles for cash
3 Freelancing
4 Become an estate agent
5 Be a freelance printer
6 Sell your creative work both
offline and online
7 Start an NGO
8 Design Apps
9 Become a transcription-ist
10 Try the dangerous job of debt
recovery for micro finance banks
11 Make huge money as a used car
broker
12 Self publishing
13 Try being a company
representative
14 Buying and selling old and new
items
Starting a business venture with
zero capital is only limited to you ingenuity and focus.
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