How To Start A Business With Little Money. Starting a business always requires an initial investment and most of the time a significant one.
But should this dissuade anyone with little money from trying? Obviously not. Throughout this article, I have outlined different types of businesses one can start with very little money.
By the end of this post, you will surely realize that starting a business with a small investment is easier than you never thought possible before.
Types of business you can start with little money
There are several businesses you can start with a small investment, but I have personally selected the ones that I believe to be highly scalable ( able to greatly increase in capacity, with relative ease).
- Start one from scratch
- Join a network marketing company
- Start an affiliate marketing
Start a business from scratch
There are many factors to take into consideration before starting a business from scratch. A good idea is only the tip of the iceberg, it takes a team, a business system in order to build a successful business from scratch.
This is probably the most difficult way to start a business, especially with little money, but as I have said this should not dissuade you from trying, because there is always a way out.
Invest in yourself
Investing in yourself before starting a business from scratch could be the only requirement for success, especially when you start with little money.
Whenever your budget doesn’t allow you to seek business advisers, it is necessary to educate yourself. You’ve got to read as many books as possible about management, accounting, leadership, you’ve got to attend business seminars, do the market research, and so on.
You must bear in mind that all these requirements are not easy to implement in solo, but it can still be done with a lot of determination, and patience.
Get a loan from a bank
No matter how insignificant your initial investment is, it is essential to get a loan from a financial institution. It is realistic to start a business from scratch without outside investments, but it is very difficult to grow without money from investors, banks, and other financial institutions
It is a savvy strategy to build a relationship with many banks as possible while you are building your business. These institutions generally have a department dedicated to small businesses, but before approaching them you’ve got to do your assignment, what I mean is, you’ve got to prepare your business plan detailing every aspect of your business, that is why it is necessary to invest in yourself, especially when you have little money before approaching different financial institutions.
The two requirements above are in my opinion enough to get you started, although this is, in my opinion, the most difficult way to start a business, as I have already said it can be done with a lot of determination, and patience.
Join a network marketing company
Networking marketing is a type of performance-based marketing in which each salesperson recruits further salespeople, resulting in a hierarchy in which each member receives returns from the sales made by those below them.
Needless to say that this is one of the trending business models in the information age. Joining a network marketing company will eventually spare you from the constraints experienced in starting your own business from scratch.
As I have already said, the two requirements to build a successful business from scratch are a business team and a business system. These two elements can take years to be well-established in an organization, not to mention the cost of building a business team.
Every network marketing company, by contrast, has these two elements well-established within their organizations, which eventually allowed anybody wanting to start a network marketing business to do so within a day.
How to succeed in a network marketing business
I personally believe that most people have the wrong approach when it comes to starting a network marketing business. The key to success is not necessary to build a network but to build a strong and active one.
Having a bunch of people in your network is only the first step to building a successful network marketing business, the long term success happens when your network of distributors is active.
Trying to persuade your friends to join your network is one of the big mistakes made by most distributors, the key is to seek business-minded people rather than trying to convince your friends to join you in your new enterprise.
I would like to make one more thing quite clear here, it is necessary to join a network marketing company based on the quality of training rather than products.
The reason why I recommend joining a network marketing at times is because of the quality of training offered by some companies, which eventually prepares individuals for real-life experience.
I have personally been a salesperson in one of the big network marketing companies in the world, and the training I received from them drastically changed my life, I was able to overcome my shyness and the fear of rejection.
The reason why I decided to start a network marketing, was not only to make money but to learn the priceless lessons of life, for the money I knew where to get it from faster than I could make it in the network marketing business.
Start an affiliate marketing business
Affiliate marketing is a marketing arrangement by which an online retailer pays a commission to an external website for sales generated from its referrals.
As we have seen from the definition, affiliate marketing is purely an online-based business. The business has been around for a while, but the drastic change in the buying channel experienced in one decade made the business one of the most profitable on the internet.
It is obvious that the internet has drastically changed our lifestyles, more importantly, the way we buy products or pay for services. We have entered an era where a simple click can give us access to billions of products to choose from.
And more and more people are taking advantage of this resource. In the United States Of America for instance, it has been reported that more than 70% of the population buy products and pay for services online.
How to make money in the affiliate marketing business
There are many ways to make it in the affiliate marketing business, but I personally believe that there is only one effective way to build a successful affiliate marketing business with little money.
Unlike starting a business from scratch or joining a network marketing company, earning passive income in the affiliate marketing business can be done in a very short time, most people do it between 6 and 12 months, but it is not unrealistic to start reaping the profits right after 3 months.
Choose the right niche market.
A niche market is a small, specialized market for a particular product or service. Simply put a niche market is a segmented market, the tire market, for instance, is a niche market in the car industry.
As an affiliate marketer for many years, something has become evident to me, this is the most misunderstood element in the affiliate marketing business, ironically this is also the key to success in the affiliate marketing business.
If you choose affiliate marketing as your path to start a business, I cannot insist on this point, failure to choose the right niche market will eventually lead you to failure, and in a moment I will tell you the reason why.
How to choose the right niche market
Unlike the conventional belief, chasing the hot or the more profitable niche market is the wrong approach to build a successful business. The right approach consists of building your affiliate marketing business around your passion or what you like doing.
Build your business around your passion
Passion is undoubtedly something we all have in common, and no matter what your passion is, you are likely to make a lot of money building your business the way I recommend you.
Affiliate marketing is one of the fast-growing industries on the internet, and this growth is due to the constant growth of people buying online, and according to experts, the trend is here to stay.
But there is something that will come as a surprise to you, although the number of people buying on the internet is increasing constantly, these people don’t go to the affiliate marketing websites to make a payment for products they want.
When someone wants to purchase a product online that person will surely go to known online retailers such as Amazon.com, eBay, and so on.
The reason why people go to various affiliate marketing websites is simply for one reason, the search for information, rather the search for a product.
And any affiliate marketer providing relevant information on his website is likely to make a lot of money in a short time.
Millions of people buy every day, but more than 70% of these people don’t go online to buy in the first place, but rather to search for information about their personal problems, financial problems and so on.
They wind up buying from an affiliate marketing website after being convinced to do so, in other words, they buy after being provided with relevant information.
The key to success is to help people by providing relevant information.
It has been reported than over 4 billion searches are done every day on Google alone( source), and more than 70% of the searches are information related searches, what I mean is people generally use the internet as a resource for information, and providing relevant information as an affiliate marketer will eventually lead you to success.
How to provide relevant information
I have talked about building your affiliate marketing business around your passion was the key to success. The reason why I recommend anyone contemplating to build an affiliate marketing business, to do so around his passion, it is because that is the most effective way one can consider providing relevant information.
Passion and knowledge go hand in hand, you can’t be passionate about something and ignorant about its basics. You can’t pretend to be passionate about basketball at the same time ignorant about everything in basketball, it is impossible.
There is no need to become an expert in whatever you are passionate about before making money as an affiliate marketer, what matters is the basics knowledge, and as you already know, knowledge is power, but in the affiliate marketing business knowledge is money.
Whoever is willing to share whatever he knows to others is likely to become very successful in the affiliate marketing business in a short time. Period!