Running a business is part of every American dream. However, it can be tough to start a business this year, considering that most of our budget is concentrated on surviving. But there are ways you can create a company with minimal capital. It centers on choosing a suitable business model, negotiating with investors close to you, and expanding your business smartly.
Often, businesses fail the moment they start. This is because many owners can’t sustain their businesses three months down the line. Sure, tech companies have the most potential to earn millions of dollars, but that doesn’t matter if you’re millions in debt sustaining the business. Thankfully, there are some business models out there that require minimal capital to start. Think of starting some of these businesses this year.
Choose the Right Business Model
Window Cleaning and General Cleaning Services
Looking for the right business model for your company can be pretty confusing. Thankfully there are many examples out there that exist. One of the more robust business models requiring little capital but decent revenue is the commercial window-washing service. This particular market is a sub-sector of the multi-billion dollar cleaning industry. Its specialization means that there will always be clients willing to get their service. It’s a reliable business and one that can stand the test of time.
General cleaning services are also booming right now because of the pandemic. Millions of offices are looking for someone to disinfect every week. It would be a mistake not to start a business in this industry this year.
Another industry that is taking advantage of our current circumstances today is couriers. There is a dire need for couriers nowadays, and because of the growth of Amazon Prime in the US, starting a courier service business has become much easier.
Amazon is now giving partnerships to many local courier services ran by aspiring entrepreneurs. They supply the van while you supply the manpower. The best part of it all is that you can start your business as the only working employee. Sure, it’s a hard day’s work, but you can easily get thousands of dollars every month delivering parcels.
You can then expand by hiring more and more people into your business, growing your network, and eventually your company.
Another modern business model that is creating big ripples in the US economy is ghost kitchens. Ghost kitchens turned into a billion-dollar industry in a span of one year, and it’s expected to become a trillion-dollar industry in the next few years.
Ghost kitchens don’t require big office space or even a commercial kitchen. Some ghost kitchens can function in people’s homes or even a converted RV. It’s a robust modern business model that addresses the need for easy-to-access comfort food. Its potential to garner millions of revenue is attractive to many aspiring entrepreneurs, and it should also look good for you.
Running a business with minimal capital doesn’t only rely on choosing the right business model. You should also be smart with your money as well.
Looking for Reliable Investors
We tend to avoid making our family members investors in our company. As Americans, we believe that family and business don’t mix. But family investors are more common than you think. It’s easy to access a stream of cash, one that you can easily pay off by choosing some of the business models we’ve mentioned above.
Having reliable investors is more important than you think. You should have investors willing to spend a bit more time in your company. Your hard work and determination to keep your business going should be overshadowed by the minimal capital you have.
Doing It Alone
During the first few years of your business, you might be doing it alone. After that, you can have a couple of part-timers helping you out, but no one permanent. This is because you don’t want to pay full-time employees.
Operational costs for startups have found that, on average, startups pay 90% of their annual revenue to employees. Online businesses tend to avoid this deduction in revenue. Still, this doesn’t have to be a reality for physical businesses, as long as you’re willing to work alone until you’ve expanded your business services.
It’s going to be challenging for the first few years, but with some hard work and determination, you can grow your company and eventually be able to pay off a couple of full-time workers annually.
By following these suggestions, you can start a business with minimal capital. But remember, you’re going to have to do more work for these kinds of business models, but it will be rewarding in the future.