If you’re like most people trying to become entrepreneurs, then you might find yourself in a tight spot: to make money, you need to have money.
The problem is cash still doesn’t grow on trees. Unless you have sufficient savings for capital, you have to borrow funds from lenders. That comes with interest. You can apply for assistance and grants, but you’re up against hundreds of other businesses.
Fortunately, there are business ideas you can run with whatever money you have. They’re also scalable, so your spending can be according to your growth. Here are some you can try:
1. Website Design and Development
Building and operating a website design and development firm can be costly. First, you have to spend on the platforms. Some are already software as a service (SAAS), which means you pay for a subscription plan that meets your needs and budget. You can also cancel it anytime.
However, as your business grows, you have to increase your spending on subscriptions or even opt for a customized plan, and that doesn’t come cheap.
Second is labour. Depending on work experience and state, their average annual salary could reach over $60,000.
If you want to spend less, you can explore white label web design services. In this setup, you outsource all the work to an established team. However, you still maintain full control over the output and the clientele. This way, you can avoid paying for training, equipment and software, and salaries, to name a few.
2. Dropshipping and E-Commerce
E-commerce is booming in Australia. In its 2019 report, the Australia Post revealed that in 2018 online sales soared by 20% nationally. They also saw growth in every state and territory, where the average increase was 13%.
Although brick-and-mortar retail sales were still higher, online revenues climbed faster. Within the same period, Australians spent an impressive $27.5 billion on Internet purchases.
But starting an e-commerce business involves many things: inventory, space, wages, shipping fees, invoices, and a lot more. You can be a one-person team, but don’t expect to grow fast in this manner.
What’s the next best option? Start with dropshipping. Here’s how it works:
- Look for companies, such as retailers, that offer dropshipping programs. Sign up.
- Sell their products in different ways. You can go to social media, build a website or an e-commerce shop, or create a blog.
- When someone buys the product from you, set the orders to the dropshipping company.
- The dropshipping team takes care of the rest, such as packing and shipping. The twist is the label will bear your business name.
With this arrangement, you need not spend anything on space or maintenance of your inventory. You can scale up or down anytime you like. You can also choose among the thousands of products to sell.
3. Real Estate Investment Trusts (REITs)
In Australia, property demand is high. The downside is a house costs a lot. In Sydney alone, properties are already worth about $1 million. How can you get into real estate when you have such limited cash?
The solution is called real estate investment trust (REIT). It works similarly as mutual funds:
- A company involved in real estate sales or management looks for investors.
- As an investor, you give at least $500, and the company pools all the funds from others.
- The company then invests it into their business.
- The investors earn through dividends or excess earnings from these properties.
In Australia, there are at least 38 REITs you can invest in. Either way, you don’t need to buy a house or mortgage anything. You can spare yourself the hassle of collecting rent from commercial and residential homeowners.
Like any other business, you need to take care of these so that they can grow. Unlike the others, they give anybody, especially those cash-strapped, the stepping stone they need to be entrepreneurs.