Here’s how to start a company with little money
The question of how to start a company with little money surrounds the heads of millions of Brazilians and the answer is not always immediate. In times of short money, getting capital to start a business of your own is not easy.
If you are going to apply your own money in opening a business, without resorting to bank loans, relatives or investors of any kind, you need to know very well how to employ that money so as not to regret it afterwards.
So the question, rather than how to start a company with little money,maybe it should be how to employ money well in the opening of this company. It may seem like just a word game, but if you think about it, it makes a lot of difference.
The walkthrough of how to start a company with little money
The My Own Business team researched and consulted experts to introduce you to the main steps to open a successful company even with little money for the initial investment. Check!
1 – Validate your business idea
The first thing you should do is validate your idea, so you don’t go around building castles in the clouds. Is your idea really good or just a thrill? To know this, you need to validate your idea to know if it’s worth continuing to move forward.
You can ask for the opinion of friends and relatives, but believe me, they will hardly be very sincere. The best thing to do in this situation is to ask for the opinion of people who are not emotionally involved in the issue, people who may turn out to be consumers or people with some experience in the industry.
2 – Finding a partner can be a good alternative
If the problem is how to set up a company with little money, maybe one of the alternatives is to make that money a little bigger by getting a partner for your business. You should only be careful when choosing your partner.
Starting a company on your own is difficult. And it’s much worse when you don’t have a lot of money. Therefore, look for a partner who helps you not only from a financial point of view, but also in the inspiration and discussion about business opportunities.
3 – Find someone with experience to help you
Seeking opinions only from people who will reaffirm their ideas is not a good option, as we mentioned in the first item. The people who will really add something to your project are the ones who launch challenges.
If you can count on a professional who has experience in the area you intend to work in, this would be the ideal person. Maybe he opposes some of his ideas, but it’s always good to have some to establish the counterpoint in the discussion.
4 – Find the right people for the job
The world is coming out of the time when the greatest asset of a company was the capital for a time when this great asset becomes the people that this company has as employees. For this reason, be very judicious when choosing the people who will work with you.
A good tip is to outsource as much as possible to not have a payroll that is very heavy, because social charges in Brazil devour your money. Hiring should take into account only technical aspects, leaving aside issues such as friendship and family ties.
One of Steve Jobs’ best-known phrases is “In our business, a person can’t do much in isolation. You have to create a team around you.” So surround yourself with really good people in what they do.
5 – Have customers as your main focus
The right way to success in the business world today is to put the customer in a prominent place in their business strategy. If you want to know how to start a company with little money and succeed with it, always keep in mind that your clients are your greatest asset. Customers are the promising businessbase.
Take a good deal of time involved in business planning to learn details about your target audience. We currently have several free online tools that can help you in this challenge. By understanding what your customers really want you will have all the clues to a successful business.
6 – Create a product or service that exceeds expectations
A successful business is based on an innovative product that exceeds the expectations of its consumers. It’s no use you setting up a business that doesn’t get carried away. The market is currently very competitive and for that very reason, you need to surprise your audience.
Develop a product or service that has an innovative proposal. Reread what already exists in the market, identifying weaknesses of existing options in the market and add a differential that will make a difference, that will put your product or service in another dimension. Starting a company with little money doesn’t mean having a mediocre product or service.
7 – Special attention to marketing
It won’t do you any good to have a great product and a super competitive price if people don’t know it exists, so think about marketing early in the business so you don’t skate around in the quagmire of lack of visibility for the brand and its products.
One of the most common mistakes for those who are opening a company with little money is to leave this for later and check there up front that it is without resources for one of the most important faces for the success of a business, disclosure.
A good tip is to use digital media, which although not “free” as many people still think, has a much lower cost than traditional media and manages to reach a specific audience, thus avoiding the waste of resources.
With the right tools and a well-assembled strategy, it is much more interesting to advertise a company on the Internet than through traditional methods.
8 – Reinvest the initial result in the business
If you have little money to set up your company, and want it to have systematic growth, the best tip is to reinvest your profits in the business to strengthen your cash and stay away from bank loans.
One of the great mistakes of new entrepreneurs is to want to make high personal withdrawals early in the business, thus compromising the financial health of the company and consequently its future.
In a country where traditionally interest rates are stratospheric, decapitalizing your company early on is a real business suicide, especially in turbulent times like the economic crisis we’ve been through, where one of the big tricks to survive will be avoiding bank debt.
9 – Legalize your business
It’s not just about knowing how to start a company with little money,but also how to get it to meet the legal requirements so that you can pursue your activity freely.