As the unemployment rate is increasing and more graduates are entering the job market, more people are trying to start their own business. There are many challenges of starting a new business. Having limited capital is the biggest challenge. Here are some suggestions on starting a business with limited capital.
1. Take a partner
You can form a partnership with an existing company. It will give you the opportunity to use a pre-existing infrastructure and add value to the company as well.
2. Offer a service
If you start a service-based business, then you need little capital. There is less need for office space. There is less overhead cost. Your business will run depending on your expertise and without the need of much capital.
If you are selling a tangible product, then instead of manufacturing the product yourself you can outsource it. After you make some profit, you can start manufacturing product by yourself. In such case, you should make sure that you manage everything well from sales, receivables and inventory management.
4. Look for Angel Investors
If you have a strong network, try to find someone who will finance your business. Many angel investors are ready to invest in good small business ideas. They help entrepreneurs to start the business.
Some websites like ‘Chipin’ and ‘Kickstarter’ offer low-cost entry platform for funding projects. You can make a short video about your business and upload it to these websites. You might find potential donors who like your business idea, and you will be able to raise money for your startup.
There are several ways open to you for doing business even if you have limited or no capital. All you need is a brilliant idea and a skilled workforce to start a business.