Starting a business with low starting capital?

Discussion in 'Starting a Business' started by Grumpy, May 16, 2011.

  1. Grumpy

    Grumpy
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    Hello everyone.

    I have one question for you - In this day and age, do you think it's possible to start, grow, and expand a decent business with a very low starting capital but a lot of time on your hands.

    I have little to no money to put in, but a lot of time. And investors don't seem willing to listen to ideas very well before dismissing them at the moment... Which I can't blame them for really, with the current economical situation we're facing.

    What does everyone think?
     
  2. Fergal

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    Yes it certainly is possible, for example you can start a blog with practically no start up capital. The blog you start could generate revenue for you and it is a great way to become known and build a profile in your chosen industry.
     
  3. Grumpy

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    Hi Fergal.

    Thanks very much for the answer, however I was more gearing this question to business in the real world opposed to virtual business. If you have any tips for me there, that'd be great! :)

    Thanks,
    Tommy
     
  4. Fergal

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    There are lots of ways that you can start a traditional business with low start up capital. If you have a look through the links in the Business Ideas section of our Useful Business Resources / Links you will see hundreds of business ideas, many of which don't require a significant start up investment.

    Also if you want to please tell us a little about your own interests and experience we will try to offer you some specific suggestions of business ideas that could work for you.
     
  5. Grumpy

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    I am very much into video games and sports. Sports I play a lot and very often. I thought about buying up memorabilia stock and selling it, but I think in order to gain profit from the business I'd have to buy quite a lot of stock in bulk at one time, which I simply don't have the money to do.
     
  6. Fergal

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    Grumpy you could start off doing that by selling at car boot sales and perhaps also on eBay. You could start with just a couple of pieces, so you wouldn't need much start up capital. Once you have successfully sold some items this would give you some income that you could use to purchase more items. It actually sounds like a nice little business that you could start from the ground up and build over time. Is that something that would interest you?
     
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  7. Yanni

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    You have to do something - as long as you're passionate about it and you are motivated... trust me, everything will fall into place. take a look at this video: http://www.viddler.com/explore/garyvaynerchuk/videos/113/0.4/

    I love this guy.
     
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  8. Grumpy

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    Yes it sounds like a good idea, but in order to make profit on sports memorabilia you normally need to buy stock in bulk. If you only buy a few pieces, there's not much room for profits in the selling process.
     
  9. Fergal

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    What would stop you from focusing on a particular type of product or niche, finding a supplier and selling the items on eBay? You could even test the market by offering items for sale, before you buy them, to see what the demand is like.

    Other options to get started would be to sell a small number of items to people you know or at particular sporting events.
     
  10. ArcSine

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    Grumpy, you may have done so already, but if not, there's usually a particular first step which then determines the direction of the subsequent steps. You've got to learn the market, bow to stern.

    Who are the players in the sports memorabilia market---few in number but large and sophisticated, or a lot of small and relatively naive actors? What's their geographic distribution; what are the venues and media through which they interact and execute transactions; what kind of volumes are typical of this market; what are the delivery methods; what are the typical sales terms; what resources do the players use to estimate values and jack up their trading skills; and so on.

    In short, get very acquainted with the market and the details of how it functions. Try to identify areas where it could work better or more efficiently. Then see how you could inject yourself somewhere into the machinery, and increase somebody's value in the process.

    This comprehensive study may result in identifying a way to become a cog in the machinery, adding value to the market in some way, and with minimal initial capital to boot. If so, you might later be able to parlay that toehold into expansions into other segments of the market.

    Just as a random example, take a guy with a ton of restaurant experience but without the capital to buy or start his own. So he becomes a marketing consultant to restaurants. Three or four years of that and he's made a lot of contacts, learned who the restaurants' bankers are, and kept himself involved in that market. At that point, a couple of those bankers might be interested in a sit-down to discuss the guy's ideas for a new restaurant.

    On a separate point, taking the tack suggested by Fergal re starting small, it might be that a demonstrable track record of success at the mini-scale level might be what's necessary to get those investors warmed up to the idea of bankrolling larger, bulk inventory purchases for you.

    Cheers, and best of luck with it!
     
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  11. Darius

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    Initiating a business with low capital investment may create a backlog for you and may prevent you from handling big business deals for a certain period of time. So, the best option available with you is to opt for a good business consultant who may help you out in getting the much need boost for your business and give it a good start-up.
     
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    #11 Darius, May 19, 2011
    Last edited: May 19, 2011
  12. Fergal

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    Welcome to our Business Forum Darius. What do you think a business consultant can offer to someone in Grumpy's position? Do you feel that investing in a business consultant is money well spent for someone with limited funds who is starting a small business from scratch.
     
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  13. Casey

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    Grumpy,
    an online business is still a business. See, not only you want to start a business with little to no capital, you also want that business to be offline, with real physical goods. While it is possible, I think that, given your financial situation, you should be more inclined to an online one, and be thankful if you make it.

    Good Luck!
     
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  14. Grumpy

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    Thanks everyone for the great suggestions and comments you've all given me. An online business is an option, however an offline business would be preferable for me. But an online business is definitely a viable option for me, yes. So, does anybody have some nice ideas for some online businesses? I don't have a particular fantastic skillset, but what I do have is a lot of spare time on my hands... Ideas please, anyone?
     
  15. SkewIt

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    I've started a successful Computer Consulting business with $400 borrowed money for an online computer business course and $60 in advertising, and it grew and grew. After I sold a few services, I started to invest in inventory, which also sold very well. I've already sold that business, but it goes to show it is possible.
     
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  16. Grumpy

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    Hi SkewIt and welcome to BAF.

    Thanks for the great advice. May I ask, what online business course did you manage to secure your $400 investment from? Do they still do this type of thing?

    Thanks. :)
     
  17. Fergal

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  18. Choice Checks

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    When i started Choice Checks. It took alot of time, patience and dedication. I didnt have much to get it started, but with every profit from sales, just kept on re-investing. If you have a online store. Make sure your SEO is 100% complete. Every product with pictures, and detail. Business documents updated to reflect any new changes or policy. Do as much blogging as you can, on your site, and other external blogs. More blogs you do, and links you have, the better potential you have of making a sale. Offer Live chat for your customers on the site. Most important is to make sure the website is easy to navigate around in.
     
  19. bossagain

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    You can definitely start any business without much investment and the best way for that is "Internet". Start a blog or do any online business without any capital but with more revenue generation. In the long run it will definitely be proven advantageous for you.
     
  20. jmsbond175

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    Hi

    Starting a business with low capital is really a problem for you. Because You will have to face some problems for dealing the big deals. I think you earn some more capital for starting a business.

    Thanks
     

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