How to start a business with 5,000 € or less? What type of business can you create on a small budget and in which sector?
Every day, dozens of small businesses are born, the majority of which are created with very little capital.
If the low initial intake can be a noticeable handicap for some activities, it is not necessarily a break for others. On the contrary, investing little money upfront can limit risk, avoid borrowing, and improve return on investment.
The most suitable status for the creation of a low-budget business is that of self-business (micro-enterprise). However, other things are also possible ( wage portage, activity and employment cooperative, service, company employment check, etc.).
How to determine your initial needs?
Initial needs or “start-up needs” are the sum of all the expenses that it is necessary to incur to start the business, even before sales have started. This costing is a fundamental step in the business creation project.
The needs must be listed, and their amount will determine the money to be mobilized for the start of the project.
Create a business enterprise with less than 5000 €.
It isn’t easy to create a purely commercial business with less than 5000 €.
Indeed, most commercial activities require significant investments: commercial premises, right to lease, legal costs (notary, surety), installation costs, work, purchase of furniture or equipment, the constitution of a stock. , financing of working capital requirements, etc.
However, some businesses are exceptions and require little initial investment. Here are some ideas for starting a business that requires less than $ 5,000:
- Create an online store: e-commerce activities are more economical than real companies, but require a significant investment of time, mainly for referencing if you want to avoid paid advertising,
- Create a personal service activity: these activities are often inexpensive because it is mainly a question of home presence: cleaning, company, shopping, meal preparation, childcare, courier, tutoring, or babysitting. ‘animals,
- Set up as an independent home seller (VDI): this involves marketing a company’s products or services at home in return for commissions,
- Set up as an independent commercial agent, in commerce or real estate: this involves making sales on behalf of other companies against a commission,
- Create a purchase-resale activity of second -hand equipment, second- hand goods, for example.
Create a craft business with less than 5,000 €.
Many craft activities require more than 5000 € to start. Indeed, the craftsman must generally acquire equipment (tools, vehicles) and stock to settle. A production or storage room is sometimes necessary.
However, some craft activities can be created with less than 5000 €:
- Some building professionals can set up in a micro-enterprise with a little contribution if they already have all the tools and if they are involved in labor services without an advance of funds. Examples: electrician, plumber, painter, plasterer, ” man with all hands” …
- In the beauty sector, a beautician or hairdresser can practice at home without having to advance a lot of money,
- In the food sector, a home caterer can set up without investing too much,
- Other possible activities: computer repair, secretarial services on request, or even photographer-craftsman.
Be careful, however, not to start with too little cash. The minimum investment is required to design communication tools and finance start-up prospecting.
Also read 8 examples of winning business strategies
Create a liberal company with less than 5000 €.
Many unregulated liberal activities can start with very little personal input, for example:
- Course or training activities: music, drawing, computer, DIY, cooking, leisure workshops (sewing, pottery, silk painting, etc.),
- Purely intellectual activities, for example, the design of commercial offers (stays, creation of brochures or logos, creation of websites, referencing), or the animation of community networks,
- Individualized advice or coaching activities,
- Activities are related to well-being: naturopath, reflexologist, somatotherapist, hypnosis practitioner, etc.
- Activities are related to entertainment: DJ, evening entertainer.
Be careful; many liberal activities are getting off to a slow start. Building up a clientele requires a lot of patience and perseverance; this is all the more true in the absence of a communication budget.
In the end, starting a business with € 5,000 or less is quite possible, but it will necessarily be a simple activity and without investment.