Beginning a business with restricted capital requires a change in attitude.
Customarily we are adapted to start the method
involved with searching for new
business openings by inquiring:
Then, we build up an objective to make an
endeavor that will fill that hole.
We consider the assets important to make our objective reality and go out looking for those
assets.
We compose a field-tested strategy and present
it to expected agents with the guarantee of a profit from the venture.
Expect you are hosting a couple of companions
for an easygoing plunk-down supper on a Saturday evening.
In planning for this social
affair, you may invest some energy in pondering
who is coming and what food they like.
You may even call them up before the
week to see whether there is anything they don't eat and if they have
any inclinations.
Having assembled this data you will settle
on a menu, go to a formula book to perceive what fixings you want,
build a shopping rundown and purchase the merchandise.
On the off chance that the agents like us and
like our thought, they give us the cash flow to begin the business. If not, we
are stuck.
Developing the
alternative entrepreneurial mindset
Here are some principles and guidelines that will provide you with a
better chance of effectively launching a business with little or no capital.
looking to start a new business and take stock of what you have at your
disposal.
1.
Skills – what can you
do?
2.
Experience – what have you
done in the past?
3.
Knowledge – what do you
know?
4.
Tangible resources – what do
you own and what do you have access to?
2. Take into account who you know
What you have should be joined with who
you know for it to have genuine power.
Check out the connections you have with
others, map out your organization of associations, and consider how
your associations could empower you to utilize what you have all the
more successfully.
Sarasvathy calls attention to that the elective
method for adventure creation advocates sewing together associations
to make new business sectors.
Connections, especially value
organizations, drive the shape and direction of the new pursuit.
3. Invest what you can afford to lose
There is a major distinction in your attitude if
you start with the point of view that I am contributing to this sum and I
expect a 30% return versus I can bear to lose this much, thusly I will
place it into the business and check whether I can make it work.
If you have just placed in what you can bear to
lose, you keep up with adaptability in the business and limit stress
in overseeing it.
In case you are simply ready to
contribute at the point when you expect that you can get a particular
return.
There is a solid possibility that you may never
take the jump and dispatch the business you generally longed for buying.
4. Experiment and adapt
With this mindset, flexibility and adaptability are a competitive
advantage.
You succeed not by becoming too fixated on a single goal or outcome but
by being responsive to changes in the environment.
Existing firms typically take longer to adapt than new firms because
they have more incentive for things to remain the same and they have
established routines and practices that reinforce the status quo.
Types of new
businesses to start with limited capital
Service businesses depend on the
skill and time of the person starting the business.
Such a person can make their skill available to others with relatively
little upfront investment.
To start a service business you merely need the tools of your trade.
A consultant may require a computer, a
handyman some tools, and a dressmaker a sewing machine.
With these tools on hand, you can use your contacts to start selling
your service.
Events-based businesses are a little more complex but can still be
started with limited capital (see the March edition of Entrepreneur for a
feature on events-based businesses).
Events-based businesses include ventures that put on sports events,
expos, and concerts.
The advantage of such businesses is that with effective marketing, you
can sell the tickets before you incur the major costs, limiting the amount of
capital required to keep the venture afloat.
Performance-based businesses depend on
the ability of entrepreneurs to perform and to pull together other people who
can enhance the performance.
The downside of
the low capital approach
Although there are many benefits to starting your entrepreneurial
journey by ask “what do I have and who do I know?”
there are also downsides to this approach which may require remedial
action to overcome the negative consequences.
What makes a
business successful
Company culture. Culture is defined as
the "integrated pattern of human knowledge, belief, and behavior
that depends upon man's capacity for learning and transmitting knowledge to
succeeding generations.
" For successful companies, culture is about attracting and hiring
the people who would be most successful in that specific organization.
Customer service. Simply defined,
customer service means taking care of your customers.
Attitude. As the owner of the company, you must have
a positive attitude and accept 100 percent of the responsibility for the
results of your business.
When you accept responsibility, you can act to make the necessary
changes to accomplish the desired results.
Business strategy. A complex strategy or
business plan isn't necessary to achieve success. A simple one-page document
will do, but it should be well thought out and well-executed.
Discipline. Discipline is all about executing the
strategies and then staying the course.
Risk. Successful business owners aren't afraid to take
calculated risks with clear outcomes in mind.
Financial roadmap. An important
attribute is the creation of a financial roadmap and budget- -and then having
the discipline to follow it.
Business processes. Another frequently
credited attribute of success is the streamlining of business processes.
Information technology. While
technology is important, it doesn't have to be complex or costly to be
effective.
Sales. Every company's approach to sales is
different. Some depend on building referral partnerships and strategic
alliances, and this is the extent of their sales process.
Training. Because we live in a world of continuous change,
it's more important than ever to implement a culture of continuous learning.
Team of advisors. Without exception,
every successful business owner I've worked with has talked to about how having
trusted advisors is necessary for success.
Work/life balance. Successful business
owners understand that every person has just 1,440 minutes in any given day and
how they spend this time directly impacts how effective they'll be in growing
their businesses.
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