STARTING A LOW-CAPITAL BUSINESS

 

Getting businesses off the ground with very little money is extremely difficult, but it is possible. Entrepreneurs are frequently restless and eager to “get rolling” with their business ideas even when they don’t have all they need. We admire businesses like Mary Kay and Domino’s Pizza that were founded with just a few hundred dollars and celebrate the success of “bootstrapping a business.” Even if your businesses are “technically” profitable, running out of money can mean failure. If you get paid right away, have low overhead, and avoid big inventory or labor costs, starting businesses with very little capital is the best option.

Mins to Read: 8 to 10 minutes

Age Bracket: 20 – 30 years old

 

Cash flow is crucial to all businesses, and there is frequently a significant lag between when you get paid and when the bills are due. Without a safety net or line of credit, unexpected costs, fraud, or a client default can bankrupt businesses. If you’re going to start with a small amount of money, you need to carefully plan and maximize your cash savings. Your business concept is the first step. Businesses with low expenses, primarily relying on your labor and a scalable business strategy, are ideal. However, these businesses will face a lot of competition, so you’ll need to fight hard for customers.

Self-Employed Delivery Driver

 

If you have Php 1,000 to invest and are seeking flexible businesses in the Philippines, delivery driving might be worth considering. You’re likely familiar with Foodpanda and Grab, which deliver meals to homes. But as a self-employed delivery driver, you have a wide variety of service opportunities. For instance, many people forget to buy food or daily necessities due to their busy lives. Businesses that provide delivery services for food, laundry, and other essentials are in demand.

If you have extra time and a mode of transportation, you can start this business. This benefits everyone—you get a new income stream, and your customers get convenience.

What will this cost you? Very little in terms of money, but it will take some time. You may need to approach several businesses to offer your service and build trust.

 

Selling Home-made Items

 

Do you enjoy baking or crafting? If so, this can be your next business venture with just Php 1,000 as starting capital. Many businesses in the Philippines sell homemade goods, such as food, candles, or crafts, via social media.

For instance, before KFC became a global business, its founder went door to door selling his homemade chicken. Food-based businesses require awareness of food safety laws. You could market your homemade kare-kare online or manufacture flavored milk teas. Cook only what is ordered to prevent waste.

Other homemade products, like candles, soaps, fragrances, and sauces, also have market potential. Each of these businesses requires different initial investments and expertise.

What will this cost? Expenses depend on the supplies and equipment needed for production and delivery.

 

 

Referral Agent

 

The referral businesses are fantastic since it may be operated both part- and full-time. Additionally, if you can locate a client in the premium sectors, the commission amount could be very high. What exactly is a referral agent, then? A referral agent serves as a link between the buyer and the seller; however, the exact duties vary based on the industry you operate in.

For instance, if you know someone who is selling their home or a real estate professional who has property they wish to sell. For a charge, also known as a finders fee, you may locate a purchaser for them. This is a great choice for people who spend a lot of time online because networking on social media may frequently offer you an edge in finding a buyer.

 

Always be truthful and honest with the buyer; not only is this the correct thing to do, but it may also prevent the sale from going through if the buyer learns something they don’t like that you failed to disclose. Finally, your finders fee will not be paid.

 

How much is this, exactly? The costs are extremely inexpensive because all you typically need is a good networking strategy and access to social media. However, the time takes a little longer than it does to pay. If you ever use this type of business strategy, stay in touch with your potential customers because even if they are not a good fit for one offer, they might be for another.

 

 

YouTuber

 

Did you know that one of the world’s most active countries on social media is the Philippines? Since a few years ago, I have always considered this ironic. The Philippines was then listed as having some of the slowest internet speeds in the world! However, things have started to get a little better, and many are now able to support themselves entirely through YouTube, Vlogs, and blogging.

 

Each of these platforms took time to develop, of course, but now many Filipinos in the Philippines and abroad are earning a full-time living from their blogs, Vlogs, and YouTube videos. Because you can cross-sell and expand your following on another platform, this business idea is quite lucrative.

 

Let’s go with Bob as an example. He is passionate about exercise and enjoys posting videos on YouTube. His videos had thousands of views and subscribers after six months. What is Bob’s source of income? On his YouTube videos, he frequently receives money from advertisements. Even so, a lot of his fans go to his website where he can make more money from different forms of advertising and has the chance to make even more money by offering his visitors a customized exercise plan.

 

Although this is true in some industries, many people believe they need thousands of views and subscribers to run this type of businesses successfully. However, if you are savvy and can maximize your revenues, you can easily outperform someone who has 100,000 more subscribers.

 

What will this cost you? Investing in a top-notch video recorder, the ideal lighting, and other online and offline tools has a price. While some equipment is required, not all of it is. Without investing a lot of money in their videos, several entrepreneurs get a healthy monthly income from their channels.

 

Some bloggers and YouTubers make product recommendations because they are paid on a commission basis. In other words, they will tell you that you must purchase this video program, camera, etc. in order to succeed, but in actuality, the item is frequently not necessary. It is entirely up to you if you decide to enhance your company’s equipment after you have received a paycheck.

 

 

Tips for Starting a Business

• Register your business

Make sure your company is registered with the SEC or the DTI. This depends on whether it is a corporation, partnership, or sole proprietorship. Additionally, be sure to register with BIR and obtain your mayor’s permit from the city where you intend to run your business. If you plan to hire staff, you should also register your business with PhilHealth, SSS, and Pag-Ibig. You also need to register your business with DOLE if you have ten or more employees. Make sure you cover any additional pertinent registration requirements your company may have in regard to the goods or services you are providing.

 

• Think and Prepare

Avoid rashly entering a business before carefully weighing all of its advantages and disadvantages. Make sure you have a business and marketing plan as well as a SWOT analysis prepared. Knowing the industry you are entering pays well. Before making the leap, immerse yourself in the market by attending seminars and training, reading trade literature, and doing anything else you can.

 

 

• Learn to manage finances

A business’s cash flow must be carefully managed. Even if you can work with an accountant, it’s a good idea to start by learning how to manage your own accounts. In tiny firms, your sole source of support at first was you. So be sure to understand how to handle both your books and your cash flow.

 

• Always keep in mind your taxes

Make sure you comprehend your taxes and are aware of when you must pay them. By doing this, you will avoid conflict with the BIR and ultimately with Philippine law. Consult with an accountant or other tax specialist if you find the calculation and payment of taxes to be overwhelming.

 

• Try digital marketing

Speak with someone about the best ways to promote your brand. This may be through digital marketing tools like websites, social media accounts, and the like. If you don’t have the time, you can hire a professional to handle your accounts. Digital marketing will raise public knowledge of your company. Also, they provide you access to a larger but more focused audience, and potentially enhance revenue.

 

 

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