Facing the crisis by undertaking is not for everyone. Check out the tips on how to start a business with little money

When it comes to money, the Brazilian’s face lacks happiness. Even with the desire to undertake, many find it very financially difficult.

A study published by the Central Bank, in 2020, shows that despite the 0.3% increase in Brazilian income between 2014 and 2019, the growth of poverty has also increased. This is due to the poor distribution of income and flawed public policies.

In addition, in 2017 Brazil was ranked 125th in the ranking that measures the ease of doing business in the country (the survey included 190 countries in total). According to the Doing Business study, the most critical points are the payment of taxes and bureaucracy for starting a business.

Although the situation is not encouraging, many Brazilians are no longer employed, to become entrepreneurs. That’s even with little money. Want to know how these deals worked out? Check out our article until the end!

How to start a business with little money

For those who want to start a business with little money, or who have already started and want to know if they are on the right path, some questions may arise. For example: Should I bet on my idea? Which companies can I look up to? What are the best deals to invest?

All these doubts are valid and represent concrete problems in the life of the future entrepreneur. However, to enter this business world, it is necessary to understand some steps that can be taken. Lots of planning and organization are always good options.

Therefore, we have separated 5 steps that explain how to start a business with little money. Check out:

1. Have a business plan

After studying and understanding what product or service you will sell in your business, you need to structure a plan. In addition, this planning will give you a significant advantage over potential competitors.

As with any project, the business plan allows you to describe your company’s future. Usually these plans are made in order to structure the first years of the company. So focus on the first possible measures.

2. Seek the right investment

In this sense, for each business, there will be some possibilities for initial actions. However, all companies must also have a financial plan, which usually includes:

• Balance sheet;
• Sales forecast;
• Statement of profit and loss;
• Cash flow statement.

In this way, having this information will enable you to have greater security. 82% of businesses fail because of cash flow problems, for example.

That’s why you need to understand your financial situation and what your company’s costs will be. If they are bigger than you planned, some alternatives can be taken.

For example, the possibility of looking for an investor. Despite appearing to be a more complex alternative, several startups have been adopting this method in order to ensure greater stability in the initial moments of their entrepreneurial life.

Structure your project well and present it to friends, family, business owners or investors. With good reasoning and determination, you will earn your starting capital.

3. Be surrounded by the right people

In other words, you need to equip yourself with both trustworthy people and trained professionals. Even though it is a challenging task, these people will ensure the success of your business.

These “right people” are from your company’s team, as professionals who will provide services for your business, such as a lawyer and accountant, for example. Ask for recommendations from friends, family or co-workers so you can save time and money on the search.

4. Determine the working model

With the possibility of virtual businesses or home office, it is worth thinking about what your work model will be. This way, you will be able to plan according to what your company requires.

Remote work, which was already gaining ground in the business world, has gained more adherents since the beginning of the pandemic. Since it allows for social distancing and also means a reduction in expenses in the entrepreneur’s pocket.

Since that way, it doesn’t require a physical location for the company’s headquarters. In other words, no expenses on rent, electricity, water, internet, telephone, etc. If your business allows it, take advantage of this moment and adopt this work model.

5. Study marketing

Another way on how to start a business on a shoestring is to study marketing concepts and tools for yourself. Since we are living in a digital age, it enables the dissemination of knowledge in a broader way.

In this sense, it is worth noting that there is a wide range of free courses and content. As well as platforms like Canva, which allow you to create graphic pieces and videos to boost your business through web marketing.

This way, in addition to your business not being held hostage by another company or professional, you will still have valid knowledge for any type of market.

Big and Small to get inspired: signature model

One of the strategies for those who want to know how to start a business on a shoestring is the subscription model. A lucrative mode that has been gaining more and more followers.

This model is based on recurring payment for a particular product or service, usually personalized. Such as streaming companies, which charge a subscription so that the consumer has access to catalogs of movies, series and music.

Companies like Netflix, Amazon, Spotify and even YouTube already have the subscription model, but smaller business models such as software companies or even gyms also use this type of service.

In this way, the customer does not have to worry about payment due dates, while the company earns recurring revenue and thus manages to plan better to be able to grow.