How to start a business with small capital

Maybe you have a brilliant business idea, then you are interested in starting a business, and develop your own company. You're also willing to take risks like leaving your current job or you run your business without getting income for a while. But there is one thing that keeps You stalled: you do not have the money.

This looks like a great problem, but the lack of capital should not stop you to pursue your dreams. Because in fact, it's possible to start a business without capital from your own (of course if you know what you are doing).

Why does a business need money

First, let's see why a business needs money. There are no fixed costs when building a startup business, every industry at startup have different needs – different. Therefore, it is very important for you to do an estimate, how much money you need before you start looking for alternative methods to finance your company.

Try it – consider the following:

A business license. You must have a business license to build a business in Indonesia.

Raw materials. Did you buy the raw materials for the purposes of your business? Do you need a computer and other tools – tools?

Fixtures. Do you need other supplies such as a machine or software?

The workplace. This is a very large cost, and you can't ignore it – things like the internet and building operating expenses such as water and electricity.

Operational costs. Try to find out how Your operational cost per month which includes employee salaries, marketing, and others – other.

Legal costs. Whether you're doing consultations on legal entities when you are in the process of developing the business?

With all the things already mentioned above, you have two paths to building a business with small capital: reduce costs or increase your capital from scratch using financing from outside. I will discuss three options that you can do now:

First choice: reduce your needs

Your first option is to change Your business model to reduce some of the purposes mentioned previously. For example, if you are planning a company started as a company training, you can reduce the cost of the employee with the employee being one – only at the beginning. If you are not particularly in need of Office, you can work from home. You can also find cheap raw materials from home, or cutting the production cost is too expensive. However, there are some costs that you can't avoid, such as legal fees and business license.

Option two: Bootstrap

Your second option is to do a "warm-up" for your business. Than you go straight to business in full, you can do so with things – basic things. You can build a blog with one particular niche, reduce the scope of the discussion, your audience, and your profit to be able to start a business. If you can start your business at the beginning as an employee, then you can avoid the initial fees.

When you've got enough income from that business, you can invest in yourself, and build a business that you dream of one by one.

Option three: Outsource

Your third option is financing obtained from outside parties. Here are some potential sources for you:

Friends and family. Do not assume that you will not get help from friends and family, although you still have to collect funds from some other source.

Angel investors. Angel investor is an individual who has a great love of the financial fund business ideas from the beginning. In general they are investing to get a portion of the shares of the company, which is certainly worthy for you to consider.

Venture capitalist. Venture capitalist just as angel investors, the difference is a venture capitalist is the organization that monitors the business that is already running.

Crowdfunding. It is very popular for several reasons: With a good idea and a good working, you can attract financing from many people.

Bank loans. You can do a loan from the bank, if you have a good credit record.

With one or more of the three options above, you can reduce the cost to build the business from Your personal finances to a minimum. You may have to make other sacrifices, like starting a small business, or partnership debtor relations, but if you trust with your business idea, there will be no one else that can hinder you to realize your dreams. The capital is one of the biggest challenges that must be faced, but make no mistake, all of that can be overcome.