Entrepreneurs with limited capital should focus on service-based business models.
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4 min read
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It doesn't seem long ago when Eric Ries' Lean Startup took the world by storm. The book gave hope to the average person like me.
It has shown me and people around the world that it is possible to start a business regardless of the circumstances.
It's been almost a decade since The Lean Startup was released, but the hope it sparked and the lessons it taught still live on today.
Thousands of people ask this question every day: what's the best business to start on little money?
I wanted to share what I think your top three decisions should be when trying to start a business but with little capital to secure it. Here are the three best companies to start with on very little money.
Note: All of the companies listed below are service-oriented companies. These usually have the lowest overhead, making them perfect candidates for people with little startup capital. Any of these businesses will likely require you to challenge yourself and learn new skills. It's difficult, but not impossible. Welcome to entrepreneurship.
Related: 8 Must-Dos to Start Your Business with Little to No Capital
1. Tax, bookkeeping and / or bookkeeping services require little capital
I'm sure you've seen this a hundred times. There's a reason: not only does it have a low overhead as mentioned above, but it also has above average profit margins and a massive customer base. This business requires training, but not necessarily an advanced degree. Expert Tip – Work a tax season with H&R Block. They are going to pay you to complete their training programs which are amazing and you will learn everything there is to know to get started in this business.
Related: 8 Powerful Ways To Market Your Business On A Budget
2. Web design, graphic design and / or search engine optimization
This is another business with a large customer base and good profit margins. It will take some training, but there are a large number of courses available on sites like Udemy and even free tutorials on YouTube. This business makes the list easy because as an entrepreneur these are skills that will prepare you for success in any project and business venture that you undertake. Embrace the learning experience and enjoy the ride.
Related: How to Start a Business Without Money
3. Social media management and growth services
This is one of the hottest topics in business today. Companies have recognized the importance of having high quality social media accounts across the board. If you can learn how to create quality content, grow social accounts, and get traffic on those accounts, you can easily run a six figure business. Expert Tip – First, focus on and get to know one social media platform. Once you have a working system in place, offer the service. That way, you can get and earn customers while you study. This is another entrepreneurial skill that will prepare you for long-term success.
These three options offer a combination of low overhead, large customer base, high profit margins, and valuable business skills. They can thrive with very little startup capital and should be high on every entrepreneur's list.
If you have an idea or passion for a business – but low on cash – ask yourself these questions before committing.
1. Is this a service-oriented business?
2. Does this business have a low overhead?
3. Are there a lot of people who need this service?
4. Are the profit margins acceptable?
5. Does this company offer a skill that will benefit me as an entrepreneur over the long term?
If you can answer these questions in the affirmative, you have a viable business idea – one that you may be able to get off the ground with little startup capital.