In building a business, large capital is not the only absolute requirement that must be met. For those of you who are going to start a business, don't be discouraged if you don't have a large capital. With the right strategy, you can run a small business with big profits.
When starting a business, of course you want this business to be long term. Once again the key lies in the strategy used must be right. That is, when you start building a small capital business, you must have prepared a mature plan.
Here are tips that you can apply when starting a small capital business so that it can continue to survive in the long term.
1. Determine the type of business that is most suitable for you
There are many types of businesses that you can choose from, for example culinary businesses, barbershops, laundry, and many more. Choose the type of business that suits your interests and abilities, so that the business can be run happily without coercion.
If one day there is a problem, it will be easier for you to find a solution because you have the ability to recognize the business that is being run.
2. Do Market Research
Market research helps you find opportunities that will happen to your business. Through research, you will discover what people are really looking for and need. Therefore, your business is here as a solution to problems that occur on target.
Market research will also help determine who your competitors are. Competitors are not something to be afraid of, because you can learn to analyze what are the advantages of your business compared to competitors.
3. Allocate Business Capital Appropriately
Please note that there are two ways to allocate venture capital. The first is capital expenditure, where capital is used to purchase raw materials, equipment, and business equipment. An example is if you are going to start a laundry business then the purchase of a washing machine, dryer, and stock of laundry soap is included in this fee.
The second is operational costs, namely operational costs which include electricity costs, building rent, employee salaries, and the like. With the right allocation, small capital can be used effectively and efficiently.
4. Find Quality Raw Materials at Low Prices
Try to find suppliers of raw materials who are able to provide good quality but low prices. Please search the internet or ask other business people for information. Do not hesitate to negotiate prices with suppliers so that they can provide affordable prices.
5. Determine a Strategic Business Location
A strategic location is very influential on the success of your business. The problem is often strategic locations have expensive rental costs. The solution, you can run a home business first or focus on selling online so you don't need to rent a place.
Do not forget to do promotions by offering your business or business to the people closest to you.
6. Don't rush to recruit employees
To reduce operational costs, you should start a business at the beginning by using your own power first. If one day it is less efficient because the business is getting bigger, you might consider hiring employees.
7. Promote Small Capital Businesses Through Social Media
Social media is a free promotion platform to support your business success. By uploading product photos, business location photos, or promo notifications, you can easily find customers.
For promotion strategies on social media, please continue to the next article : strategies for promotion through social media
The key lies in your consistency in your promotions, because you never know customers can come from anywhere.
When the small capital business you are running has started to stabilize, don't forget to always evaluate the financial records of the business.