Gov-Relations Logo

A Guide on How to Build a Business For Low Income Individual

Written by: Imelda Bouchard

Unlike working a nine-to-five job, running your own business provides you with unlimited potential for profit-making. You control every aspect of the enterprise and you have more control over the earnings you put in the bank. While it’s a dream for some, others may not even have the means to get started.

That’s not to say that building a business with a small budget is impossible, but when you’re expecting success, you will have to muster enough resources to get the ball rolling. Fortunately, there are ways for low-earners to finance a business with just a small amount. You just have to follow the guide below:

1. Come up with a business plan first

Before you start looking for money to fuel your business, you will need to have a business idea. It’s the concept that defines the amount you will need as your starting capital. Make sure to come up with a well-thought-out business plan that includes a working name, and the products or services you will be selling, as well as short-term and long-term growth strategies. 

You will need these details in your proposal which you will present to banks and other sources of financing. Without these, you will have fewer capital-raising options to choose from. 

2. Start looking for investors

Since you lack the capital needed to flesh out your business idea, your first source would be the people closest to you. From childhood friends to college roommates, your inner circle is rich in people who might be willing to join your venture as equity partners. 

From this, you will be able to pool more money to fund your business. However, be wary when reaching out to potential investors you already know. There’s always a good chance for conflicts to arise over the sharing of profits, so consider drafting a clear agreement and have an attorney finalize it later.

3. Get the right partners for compliance

As you search for small business loans that align with your current needs and future goals, make sure to look for other potential providers who can work on helping your business comply with government regulations. 

For instance, when it comes to setting up a worker’s comp program, you can check out providers like myMatrixx for pharmacy solutions that fit your business’s worker’s comp program. By knowing who to reach out to, you will be able to avoid paying more to keep running your business.

4. Shop around for innovation grants

It’s basic practice to look for a business loan, but in addition to getting financing this way, you should also consider applying for government grants. If your business concept focuses on solving a major problem, you could qualify for grants offered by research institutions for green technologies, artificial intelligence, and other disruptions. 

One major grant you can check out is Amazon’s Small Business Grants which awards up to $250,000 to deserving businesses. On the other hand, you can also opt for government-mandated grants such as the United States Department of Agriculture’s Small Business Innovation Research program which also offers hefty monetary support for enterprises that meet the program’s criteria.

5. Consider VCs and angel investors

Aside from government grant-giving bodies, there are also private individuals who are interested in putting money on potentially disruptive products and services. Through venture capitalists, you will be able to receive cash grants meant to jumpstart your business. These firms set aside funds for philanthropic purposes such as charity, but they are also keen on helping small businesses like yours finance the equipment, labor, and materials you need.

On the other hand, angel investors are individuals or firms that also help finance your business with the expectation that they will become equity partners later on. This would mean getting a cut in the earnings of your business. Keep in mind that some VCs and angel investors would end up purchasing your business once it reaches the pinnacle of its success. Before you consider working with one, make sure you have legal protections in place so you will remain the owner of the enterprise. 

Endnote

If you have a great idea for a business, don’t let it fester in your notebook just because you don’t have the money needed to bring it to life. Regardless of how much you have in your pocket, the best time to start a business is today.

Imelda Bouchard
Imelda Bouchard is the owner of Gov Relations. She graduated with a degree in Business Administration in Finance​ at the University of Houston-Downtown. Imelda has over a decade of experience working in the finance industry. Following her stint at an international fintech company, she has decided to create a platform where businesses can make use of great business ideas.

Comments are closed.

Gov-Relations Logo
Gov-Relations is where people may seek information on funding opportunities. With our help, we hope our readers are reducing paperwork and simplifying their grant application procedure. We provide data quality reviews, assistance, and informative articles to assist applicants in their journey to completing and submitting grant applications.
(949) 695-8823
17595 Harvard Ave. C2480-B Irvine, CA 92614
© 2024 Gov-Relations. All Rights Reserved.