With a loan of no more than $ 900, brothers Tom and James Monaghan started their emerging project “Domino’s Pizza” in 1960, marking the beginning of the launch of a successful project with a small capital whose success exceeded the borders of the United States of America, and its branches spread to include countries of the world east and west, and in 2018 celebrated Domino’s Pizza chain of restaurants with the opening of the 15000 branch in Texas, USA.
Domino’s Pizza success story and many other success stories of projects that started with a small capital, express that this matter, despite its difficulty, is possible to happen. The project has been available yet.
But what the nascent project may suffer from the depletion of capital after a period of time, which does not affect the success of the project only, but threatens the existence of the project itself, for example; A time gap between when revenue is collected and when due bills are paid, or the sudden appearance of unplanned expenses, exposure to fraud, or customer delays in payment are factors that may expose your business to sinking if you do not have sufficient cash cover from your funds. Personal loans or loans to keep your business afloat.
Bernie Klinder, a business consultant and American investor, believes that running a successful project with a small capital is better if 3 conditions are met, namely:
- Revenue is collected instantly.
- The expenses are low.
- Labor and commodity stocks do not require high expenditures.
The most important tips for starting a successful business with a small capital
If you aspire to start a successful project with a small capital, here are these tips that experts recommend in order to stand out in the competition and start success:
1. Spend your money only to grow your business
Keep your expenses at their lowest level by being careful not to spend even a little bit of money, unless this will lead to the growth of your business, such as bringing you more clients or helping you to provide your services to them, but what is below that, do not spend on it.
2. Always look for a cheaper alternative
The matter is not optional, as the lack of capital will inevitably make you go down this path, and the search for cheaper alternatives in your project assets is smart and inevitable, for example:
- Use free or monthly subscription software : Instead of purchasing accounting, project management, email, file storage, or CRM software, use the cheapest alternatives available after doing a little research on the Internet, such as G Suite, MailChimp, Trello, and Dynamics. 365 and many others provide software solutions for companies, and many of them offer free or with a simple monthly subscription and increase as your business grows.
- Buy used equipment: The number of projects that are subject to closure or liquidation is a large number, so it is not necessary to furnish your office with new furniture or use computers with the latest version, or new production machines, you can replace all of the above with previously used equipment that meets the purpose and reduces your expenses, On the Internet, there are some sites devoted to selling second-hand goods, and you can also buy your equipment in multiple batches depending on your revenue improvement instead of buying it all at once, as this is a suitable solution that prevents you from falling into the trap of debts that represent a burden on any project with a small capital.
3. During the first year, be prepared for austerity
At the beginning of creating a project with a small capital, you should not think of your project as a profit machine that will make you get paid a large salary as the founder of the project, but on the contrary, during the early years of your project you may find that you are the lowest among your employees, so be prepared for that and save Another source of side income, or keep your personal expenses as low as possible
4. Hire online
Online recruitment provides the costs of renting a place for employees to perform their work and the additional expenses that entail such as rent, electricity, etc., in addition to that, it gives you a complete opportunity to choose the right employee accurately after searching within a broad base of freelancers who work freely on the Internet.
And online recruitment options have become varied, you can accomplish small tasks using microservices sites such as five , and you can complete complete projects for larger tasks by contracting with professional freelancers through a freelance platform , and if you need permanent employment online, this option has also become available via A remote location for remote recruitment, where you place your ad for the required job and then start receiving job applications from full-time employees online.
The previous platforms cover many areas of work for example; Programming, marketing, writing, design, consulting and other jobs that can be practiced online.
5. Postponing the establishment of the headquarters of the project to the longest possible time
The availability of a headquarters for a project with a small or even medium capital, is not at all inevitable, as many companies conduct their business during the first years without the presence of the company’s headquarters, and with that they achieve huge profits and still postpone taking this step for the longest possible period, as it costs to provide a headquarters The project is big money, you do not need to spend it, and this advice is appropriate if you do not have to meet with clients in your office or the selling or manufacturing activities of your project do not require a space to practice.
6. Have some accounting culture
Accounting is one of the most important basics of any business project, so it will benefit you a lot to have knowledge of basic accounting principles, in order to be able to track your income and expenses, and to improve your ability to determine the most profitable methods of work, in short, knowledge of accounting principles will make you able to control your project better, It is something that will help you to manage a successful project with a small capital.
7. Take care of the nice customer
I know the extent of your endeavor to attract the largest possible number of customers, so that your project wheel rotates and grows rapidly, but unfortunately, not all customers will represent a real benefit for your project, but on the contrary, they may represent a hindrance to the smooth and orderly conduct of your business, for example the quality of the customer Those who are late in paying their payments, or who are difficult to deal with, are a stressful quality that you will find yourself wasting more time and energy with it, so the right action may be to get rid of these types of customers, and focus your attention on committed customers and those who are easy to deal with.
Are there other tips that might help an entrepreneur who intends to start a successful project with a small capital? If you know additional tips, share them with us in the comments.