Legally, starting a business from scratch is entirely possible. Moreover, no minimum capital is required. But in practice, it is quite different. You have to pay rent, buy supplies or products to sell, advertise, etc. It all depends on the business you want to do and how hard you try to keep expenses down. So, here are some tips for minimizing the costs of starting a business.
Reduce the Cost of Rent
Having your own space is ideal if there is enough room. Besides, you can do it from home and sell your products or services online if you work alone. Otherwise, look for a space at a low cost. You will easily find them in small towns or villages. Many well-known companies are based in rural areas. Just make sure that the establishment is well visible. But if you are moving for services or deliveries, this option is optional.
Opt for a Precarious Lease
The precarious lease is a security solution for businesses just starting. It is a short-term lease, which allows the tenant to stop in case of financial problems. The cost is, therefore, less expensive. Besides, the first months are the hardest for the companies. But if everything goes well, the lease can always be renewed. On the other hand, the lessee is obligated to fulfill its commitments with a long-term lease, even if the business is struggling.
Better Management of Inventory
Having a large inventory of goods is indeed ideal for retailers. However, this can be a problem, especially when the space is small. There are two ways to deal with this: either rent a particular room or reduce the stock. In fact, it is better to avoid storing many products that have not yet been ordered. A warehouse is an excellent alternative when starting a business.
Find the Right Suppliers
Value for money is an essential criterion in the sales business. To offer products at the best prices, you can buy from local artisans, producers, and associations. Make exclusive contracts with them to maintain your position and reduce competition. However, remain demanding on the quality of the products to keep your customers loyal.
Look for a Good Price Margin
The secret to making money quickly is to sell high-margin products. Food products (raw, cooked, or processed) are among the goods that offer more profit. You can open a café, a craft or fruit store, or even a delicatessen or local produce store.
Selling salvaged or recycled items is also an excellent way to make profit. Sometimes, all that is needed is to clean and maintain these objects to bring them back to good condition. Repair businesses are also in high demand and require little start-up budget. Only know-how is required.
Selling Your Work
Do you have a talent for art or crafts? Nothing is stopping you from being both the supplier and the seller. All you need is a good sense of organization to fill orders on time. Besides, by selling your own work, you gain the trust of your customers. They know they can come back to you for problems with product use, repairs, etc. And most important: you set the price yourself.
In short, starting a business on a shoestring budget is possible. In fact, many people have already tried it.
