How To Start A Business Without No Money.Starting a new business is simpler than you think and there is no need to make investments that are beyond your means.How much do you need to start a business? The answer to that question depends on a number of factors, but it is certainly much less than you might think.s.
The calculations you need to do to start entrepreneurship
Before starting the new venture, you need to be aware of some expenses that you will encounter along the way. Putting them in planning is one way to prepare yourself to have enough money to cover them in the first few months.
1- Pre-operating expenses: these are the costs you will have before you even start the business. This includes your time spent on the project, materials and necessary tools that you do not have yet and any courses that you need to take.
2- Working capital : this is the amount that will be available in the company’s cash for eventual expenses. Knowing how to manage working capital is essential to avoid complications in finance. Try to separate all your personal expenses from company expenses.
3- Calculate the value of the raw material: if you will manufacture products, then you need to raise the costs of the necessary material. If in your business you will make cakes, for example, calculate the cost of flour, sugar, fillings, gas and packaging.
4- Calculate how much your hour is worth: you must also assign a value to your work. Take into account cut-off time, research time (if applicable), service and travel time. Be sure to also analyze the average amount charged by competitors.
5- Calculate the value of the infrastructure: also take into account everything you will need to work. Rental of a commercial room, monthly fee for coworking, expenses with fuel, water, electricity and telephone in addition to, of course, taxes to be paid.
6- Regularize your company: also consider the costs to formalize your business. The amounts vary according to the type of company. We have already talked about how much it costs to open a company in Brazil . Also separate the documents: in the case of the MEI, you only need the CPF and voter registration numbers, and a proof of the last income tax return.
7- Calculate the value of disclosure: finally, consider the means you will use to advertise your work. Will you do everything yourself or plan to hire someone? If you are on your own, include this cost in your hour of work. Learn about some digital marketing trends for small and medium businesses .
How long does it take a company to start making a profit?
There is no exact answer to that question. Each business has its particularity and, therefore, it is necessary to make an estimate. One of the most used methods for this is called Payback . Just divide the amount earned in a period (one month) by the value of the initial investment.
For example: if you invested R $ 10,000 and received R $ 2,000 in the first month, in theory it will take five months to recover the amount invested. However, this initial investment must be added to the monthly costs, which will extend the period for a few more months for your business to start making a profit effectively.
Yes, it is possible to undertake without money!
Although it is not possible to escape some initial expenses, this does not mean that you need to have money on hand to start a business. There are some alternatives that, with planning, are perfectly justified and possible.
1- Look for a partner-investor: you do not need to have all the money you need to start a business in hand. It is very common to resort to the figure of the partner-investor. He is responsible for entering the money to finance his business, in exchange for a percentage of the profit.
All you need to do is convince the investor that your idea is really good and that it can bring profit in the medium and long term for everyone involved. In other words: it is only you who will get your hands dirty, as the investor enters with the money and you with the work.
2- Make a loan: Another possibility is to use a loan to obtain the necessary money. In that case, you need to be disciplined: start small and reinvest all the money received – without making a profit – until the company starts to make a return. To get credit for your business, a good project makes all the difference.
3 ideas to get started right now
Some businesses do not require much investment. Often, what we already have in hand, such as a motorcycle or a kitchen, is already sufficient to take the first steps. Below, we list some simple business ideas that can quickly evolve into a formalized company.
1. Frozen foods
There is an increasing number of people who stop eating out to save money and take a lunchbox from home to work. You can be the supplier of these lunch boxes. In that case, you only need a kitchen to work. Invest by buying ingredients, packaging and advertising so that everyone knows your work.
2. Online private lessons
Do you master a subject and think you can teach others? So it is already possible to teach classes and start a business. If you do not have an adequate environment to receive students, there is no problem: you can give private lessons at the students’ home or via the internet. The advantage here is being able to have customers from all over Brazil. You just need a good computer, a microphone and broadband internet.
3. Gift baskets
Breakfast baskets remain a very creative gift. You can receive orders to assemble them and your job will be just to choose the items, decorate the basket and make the delivery. For that you will need packaging and some decoration items – and, of course, invest in advertising. It is not a difficult job and it is possible to grow quickly without much investment.
The list does not stop there. There are many other possibilities to be explored. However, it is your planning that will give you the answer of how much it takes to start a business. Some ideas may cost zero, while others require a larger investment.
The most important thing is to know how to adapt to your reality. Most of the time, a good idea combined with effective planning are able to overcome any challenge. How about starting your journey now?