Starting a business with only a small amount of capital requires additional efforts and for you to stop worrying about the numbers.
Can you start a business without much money? New tools and internet access have made this easier, but we want to share this guide from the experts.
Firstly, you need to have a good idea, create an identity or brand, and provide your customers with unique experiences so that you have an advantage over other businesses that are already established in the market.
To discuss this subject further, Tec Review interviewed Jose Antonio Camacho Carrillo, a speaker, entrepreneur, and Founder of SalesPartners, a company he founded in 2006 that’s dedicated to consulting in business systems and processes.
His partners include Kelly Ritchie and Blair Singer, advisor to Robert T. Kiyosaki, author of the bestselling Rich Dad Poor Dad.
The businessman, best known on his social networks for his personal brand Veco, shared seven basic things that you must take into account.
If you aren’t an engineer and you’ve had a business idea related to the design of a prototype or industrial part, it might not be such a good idea. The more you know about your business sector the better: it will allow you to improve your service or product.
Many entrepreneurs want to spend all the capital they acquire and go big from the start.
The recommendation is to start locally and then, over time, think about whether to open in another location or even begin to export.
Calculate how long the business will take to produce a profit, and then reinvest it. It’s always advisable to have some money saved just in case of any problems or emergency expenses that you need to deal with.
We know that you want to create jobs and that you need people to help you. But one way to start at a low cost is to do everything (or most of it) yourself. This is just what the so-called ‘nenis’ did. Nenis are women who went viral for selling all kinds of products online. They close the sale, pack the items, and even make the deliveries.
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You can find everything you need about new trends on the internet, such as: how you can improve your processes and your social networking, how to increase your sales, and even train yourself to provide extra information to the niche interested in your products or services.
If you need training, you don’t need to spend a fortune on courses. Think about whether it’s something you can research on the internet.
If your business doesn’t require an office or premises to sell your product, you should avoid that expense. Dark Kitchens, or virtual kitchens, are examples of these. If you’re cooking from home and delivering by yourself, you don’t need premises.
The pandemic has taught us that we don’t need premises for people to purchase from us.
In Mexico City, the average rent for well-located premises is 15,000 pesos. If it’s a business without much money, are you going to generate enough income to pay the rent?
Your business is your dream, and you should take care of it. Someone else won’t have the same passion that you have for it. The thing is that employees work in exchange for payment and won’t pay the same attention to the business as you do.
Another thing that you must take into account within your business plan is that you will have some losses.
It sounds really negative, but all entrepreneurs go through it. You should try to prevent them because thefts have bankrupted some great business ideas.
If it’s possible, try to keep some savings aside for emergencies. If you can, take out insurance. This can help you, depending on the size of your business.
This is the basic mantra of every business, but you don’t think about it when you’re starting out because you say: ‘I need to rent some premises! I need to pay an assistant. I need a driver to make deliveries.’ Before you know it, you’ll have a huge list of expenses and perhaps you only sold two hamburgers that day.
Brands should offer an experience rather than just selling a product. This is the factor that will make the difference for your business.
Jose Antonio Camacho, known as ‘Veco’, gave the example of Starbucks. Even though their coffee isn’t the highest quality in Mexico, what they sell is status and an experience, just by having customers in their cafés or bearing the logo on their to-go cups.
He recommends that entrepreneurs should provide better customer service experiences through their social networks, respond to messages in the shortest time possible, answer questions, and interact, so that customers don’t go elsewhere.
“Social networks are a communications channel with customers. If they send you a message to ask about your product and it takes an hour for you to get back to them, they won’t buy from you,” he says.
According to the entrepreneur and business trainer, another good practice for selling online is to use social networks such as Facebook or Instagram as a showcase for the product or service you offer.
There are even entrepreneurs who organize giveaways, social media competitions to give away products.
Small details such as the packaging you send to your customers may seem not important, but that’s where creativity comes into play when providing a virtual experience.