Entrepreneurs with little capital may be thinking that their business ideas are far from becoming real. It’s true that fully-operating companies require a significant amount of money. But, more successful businesses than you think started from scratch, with small investments.
After the apparition of the Internet, starting a business with little capital became easier. We now have basically everything we could possibly need to kickstart our business projects: unlimited knowledge and effective platforms to reach the customers, both things for free.
So, if you have less than $1000 and want to know if it is possible to start a business, understand that you have real chances of success. Nevertheless, it requires hard work and commitment. Are you willing to do what it takes?
Let’s begin with the necessary steps to start a business for under $1000.
Create a Solid Business Plan
We all need to face the reality: no business idea worth a penny if it can get backed up by a strategic, rational plan. Creating a business plan becomes paramount to start working on your project. This move will tell you where you are right now and where you need to go.
At first, the business plan will define in simple terms the idea you want to materialize, pointing out who are responsible for it and the nature of the product of service that is going to be offered.
The other half of your business plan should focus on the market and money factor. This is especially important because, in one way or another, it will help you to validate your idea. You may be thinking that your business idea is brilliant and you are going to make millions. But once you sincerely analyze the market’s indicators and the finances behind them, you can have a good impression of the idea’s true potential.
Finally, the business plan must include objectives that will provide direction. You will know where to begin and what to do next, once an objective is reached. This way, your business will be always ready and will not hesitate to move forward.
With all the resources available online, you can create the business plan yourself. This means zero costs. Browse online and invest a few hours reading some business plans. Get inspiration and draw your own strategy.
Define your Identity’s Basics
When you start a business, defining its identity is absolutely necessary. The brand is a key to success for many companies, as they generate outstanding results on marketing and sales levels.
But here, you are trying to start a business with under $1000. An industry-leading identity demands six and seven figures in investment. So, you need to stick with the basics and establish a base identity to start with. And don’t worry too much: in the future, you will have the chance to continue working on your identity.
Hire a graphic designer to create a logo for you. With less than $20, you can get a quality design on a low-cost freelancing marketplace as Fiverr. Then, pay for hosting and get your website online. If you don’t have quality content to post already, stick with a basic site. Getting the hosting service, a domain, and a basic template for WordPress may cost around $200.
Finish this identity creation’s initial phase by creating social profiles on the most profitable platforms according to your business. During the market analysis, you must determine where your potential customers may be. By knowing such thing, you will be able to consciously select the right social media platforms.
You need to be active on social media as it represents a highly effective channel to reach potential customers. If you want to start a business on a budget, it may be difficult to hire someone to manage your profiles and do what it takes. Nevertheless, freelance community managers offer affordable plans that may suit your business’ needs. This service may cost around $100 per month.
Working on Infrastructure
At this point, you will need to work on your infrastructure. Are you going to have a consulting business from home or you will need an office? In order to make your business work, do you need to rent a place on a certain avenue? If you are on a budget, you probably aren’t going to open a shop on the street. Instead, the healthiest way to start is at home.
Working at home requires a lot of self-discipline as distractions may be abundant. Also, psychology doesn’t help us either. We don’t perform at the same level if we stay at home. But that’s the only way to keep expenses at a minimum.
Depending on your geographic location, the costs of renting an office space may greatly vary. Big cities will demand most part of your $1000 capital, so that isn’t a bright idea. But, if you live in a place where renting an office space costs less than $200 a month, you may go for it. This investment will bring you benefits in the form of mental performance and enthusiasm.
If not possible, build a solid routine and figure out how to be productive at home, without falling into those expenses. A good idea is to set up an exclusive space at home to work, where little distractions are present. At IKEA, you can get a desk and chair for less than $100.
Also, establish a serious schedule and respect it. Dress for the occasion and forget that you are at home. This is a sacrifice that pays off.
Pushing the Business Forward
With an initial $1000 investment, hiring people to work with you is simply impossible. As an entrepreneur, you will be responsible for pushing the business forward. If you have partners in the same situation as you, things may be easier somehow.
Invest around $25 in presentation cards and start going to networking events, the ones related to your sector. Be ready to move around looking for your first clients or potential investors/partners, if that’s the case.
Be willing to spend your money in clothes, transportation, and social expenses. Be conscious about these expenses, because it’s easy to lose control when sharing and meeting with potential clients.
Stick with the very basics at first and avoid additional costs that may jeopardise your business before making its first sell. Be always conscious and willing to put the hard work. By doing so, you will be on the right track to achieve great things.