5 suggestions for starting a business with limited finances
Starting your own business takes a lot of time, money, and effort. However, many inspiring entrepreneurs are hesitant about starting a business because they’re low on funds and think that it’s impossible to achieve their goals on a small budget. Still, that isn’t always the case.
While it’s true that some businesses need a lot of monetary investments just to get off the ground, that’s not true for all professions. If you’re willing to work hard but don’t have a specific business idea in mind, we have some that almost anyone can start, all on a small budget.
Amazon FBA business
When it comes to eCommerce, most people instantly think of Amazon, which is no surprise at all. This eCommerce giant has managed to build a name for itself and 89% of buyers agree that they’re more likely to buy products from Amazon than other eCommerce sites.
If you want to sell your products online, you should take advantage of Amazon’s great reputation and start an Amazon FBA business. FBA stands for Fulfillment By Amazon, and a lot of online merchants choose to join FBA because it allows them to take advantage of Amazon’s fulfillment centers.
In these centers, Amazon receives and holds the inventory of the FBA business, prepares their shipments, sends orders, and processes returns. In other words, FBA allows you to be a third-party seller on Amazon while the company takes care of warehousing and shipping.
To launch your own FBA business, you need to go through the following steps:
- Create an Amazon Seller Account.
- Devise a clear marketing strategy.
- Think about what you want to sell and see if there’s a market for your product.
- Decide how much money you’re willing to invest and set a clear budget.
- Advertise to your ideal customers and grow your business.
As for how much money you need to become an Amazon FBA seller, there is no set amount. You can invest as much or as little as you want. However, it’s good to set aside at least $5,000 until you get your business off the ground and add further investment as you start to grow and expand.
Dropshipping
In the dropshipping model of doing business, you simply sell and ship products that you don’t own or stock. You can work with both wholesalers and manufacturers.
All you need to do is forward the order you receive to your supplier who will then fulfill that order and all you need to do is ship it. Not only is it simple but also profitable, as dropshippers can earn more than 50% of profit than those who keep their own stock inventory
Here are all the reasons why dropshipping is ideal for someone with a small budget:
- Startup costs are low. Large capital is required to stock a warehouse, that seemingly simple thing could bankrupt you if you’re low on funds. So instead of purchasing a huge inventory and hoping it makes you a profit, you can start a business with no inventory and begin to turn a profit from day one.
- The cost of inventory is low. One of the biggest costs of selling products is the cost of inventory and if you stack too much or too little, you’ll lose revenue. With drop shipping, you avoid this issue altogether and build your brand without the worries of inventory costs.
- The cost of order fulfillment is low. Other types of businesses need to jump through a lot of hoops just to fulfill an order. It’s much less expensive and easier to allow a third party to take care of warehousing, organizing, tracking, labeling, and packing an order.
- You’ll be able to sell more. Since you won’t have the constraints of the costs associated with physical inventory, you will be able to offer popular products to customers without worrying if you have them in your inventory or not. You just need to know the best ways to find winning dropshipping products.
Social media specialist
You’ve probably noticed that every successful business has one thing in common, which is a social media presence. Even small businesses have accounts on multiple platforms and as much as 90% of brands want to build brand awareness through social media.
But a majority of those companies with a social media presence don’t have the time or maybe even the will to keep track of multiple platforms, post every day, and interact with followers. Instead, they outsource the job to a social media specialist who does all of the work for them.
If you become a social media specialist, you will write posts on different social media platforms such as Facebook, Instagram, and Twitter. But if you want to succeed in this career, you need to know how and where to post, how to write exceptional copy, and the best ways to reach an audience.
In the beginning, you’ll need to do a little bit of research on how to create a great social media marketing campaign and partner with a smaller brand. But as you become more experienced, you can offer additional services and ask for a higher salary.
Personal trainer
If you’re the type of person who’s passionate and knowledgeable about fitness and has spent years working out in a gym, you might have a very profitable venture on your hands. All of that time you spent working out can be turned into a business where you help others achieve their fitness goals.
Personal trainers can work from multiple locations. Most of them offer home visits, but you can also hold classes at a local health club, at your own home gym, or even offer personal training sessions online. The possibilities are practically endless and you’ll need very little money to start.
The thing you need to focus on the most is how you want to market your new business. You can post flyers at local gyms, build a small website where you will post videos of yourself working out, and have friends and family talk up your skills to everyone they know.
Room rental
This is probably one of the easiest business models, as you don’t need anything more than a spare room in your house. You can set up an account with Airbnb or put out ads on travel websites. If you offer people a cheap and clean place to stay, you can turn a profit with very little effort.
If you don’t mind having strangers in your home and enjoy meeting new and interesting people, you can’t go wrong with this business model. Simply tidy up the room you want to rent, take great photos that show the place in the best light, and offer better prices than your local hotels.
This business model works best if you live in a town that’s popular with tourists.
Final thoughts
Contrary to popular belief, you don’t need a lot of money to start a business. If you’re hard-working and willing to invest your time and just small capital, any one of these business models can make you money. Just choose the one that works best for you and you’ll be amazed by the results.
