As a rule, the possibility of doing business provides for the presence of a certain starting capital, that is, those financial, material and intangible resources that could ensure the start of a commercial activity and its profitability.
Especially tangible is such a need in the manufacturing sector, as well as in the field of trade. The existence of production is impossible without fixed and circulating assets of a material nature, which in most cases are expensive, and trade involves the availability of at least circulating resources.
The service sector is less dependent on the size of material starting capital, since often activities in this environment are based on intangible capital, namely on the necessary skills, abilities, knowledge, opportunities, etc.
When the concept of a business with small investments is considered, then material costs in their cash equivalent are mainly taken into account, although, in certain cases, intangible capital is often achievable on the basis of monetary costs, for example, expensive training.
Small investments in business is a rather arbitrary concept, because there is no fixed bar by which it would be possible to determine which investments are considered large or small. It depends on internal perception, the economic environment, the income level of the population, and so on. But, at the same time, it can be purely intuitively determined that small investments can not be called, for example, millions of investments in a business project, and large – the provision of private services for sewing lessons.
Business idea as a tool for starting a business with small investments
The ability to conduct a financially inexpensive business depends on a well-chosen business idea, that is, an idea for a specific activity that would have potential market demand. Such a business idea can be individual, that is, developed by the person starting a business activity, or borrowed. Currently, there are entire bases of business ideas where potential and current participants in market relations carry out the sale or exchange of such offers.
The choice of the field of activity. As a rule, the service sector is the most suitable, but an inexpensive business is possible in other areas, for example, a small manual production of a product at home or trade through after-sales payment for the purchase of goods. Recently, such a type of activity as franchising trade has been popular, although far from always such trade can be called “cheap”.