Want to start a business but don't have capital, what should startups keep in mind?

Many people think that they need a large amount of capital, even a very large amount, to start a business. In fact, many individuals who start a business are not successful even though they have a fair amount of capital in hand, but on the contrary, many people start from scratch. So, when you intend to start a business but have no capital or little capital, do not rush to give up, because in addition to capital, there are other factors that affect the success or failure of the project. Let's find out with FundGo what startups need to pay attention to when starting a business but have no capital!

Current state of startups

In the context of strong integration with the world economy as it is today, start-ups are one of the top concerns in Vietnam. Start-up projects are expected to contribute to promoting socio-economic development, creating more jobs for the community as well as meeting the increasingly high and diverse development needs of society.

In recent years, startup activities have been constantly developing in Vietnam.

Statistics from the Tracxn startup platform show that Vietnam is one of the countries with the most dynamic startup environment in Asia, with more than 3,000 innovative startups by 2022, nearly double the estimated figure at the end of 2015. Our country is also among the countries with the highest entrepreneurial spirit in the world, but the ability to successfully implement creative ideas is among the lowest. There are many reasons why startup projects are ineffective, such as lack of capital, lack of knowledge and experience, etc. Of which, capital is the most common problem. However, you can completely overcome this difficulty. This is a prerequisite but not the only problem you need to consider when starting a business. 

What should you pay attention to when starting a business but have no capital or little capital?

Want to start a business but have difficulty with capital, you need to prepare carefully from ideas to plans to minimize risks and achieve success. Below are the factors you must pay attention to if you want to start a business.

Creative ideas and specific plans

If you want to start a business without much capital, you need to focus on investing in ideas and plans. Having a creative idea is important, because it makes the difference between your startup project and other projects. For your first startup, you should start in your strengths. You should not 'encroach' on areas that you do not understand well, because that will make the development path more difficult. After having an idea, you need to make a specific plan, describing in detail the idea, how to implement it and the necessary factors to implement that idea.

Creative ideas and detailed planning are key to starting a successful business.

Have a careful budget 

When starting a business with little or no capital, you need to pay special attention to your income and expenses. Try to limit unnecessary expenses. To save money, you can work from home instead of renting a space, or you can take on multiple jobs to limit hiring employees. 

Avoid unnecessary expenses and try to save as much as possible.

In addition, you can take advantage of social media channels such as Facebook, Instagram, TikTok, etc. to promote your brand. This is a very effective way to reach customers without cost.

Capital raising

If you do not have enough capital to start a business, you can seek capital from family members or friends. You can also try discussing your business idea with friends to seek investment cooperation.

One of the most effective ways to solve the capital problem is to seek investment funds. Currently, in Vietnam, there are many startup support activities, through which you can access investment funds. The creative startup ecosystem in our country has more than 1,000 organizations with the capacity to support startups, including 202 co-working spaces; 217 investment funds/investors; 79 incubators; 40 business promotion organizations, etc. Some typical funds include: Youth Startup Support Center, VinaCapital Vietnam Opportunity Fund, Vietnam Investment Fund, Ho Chi Minh City Startup and Innovation Investment Fund (HSIF), Dragon Capital Fund, Quang Trung Software Technology Business Incubator, etc. The establishment of these startup support organizations has helped startups solve a difficult problem of capital sources, while contributing to helping businesses across the country grow and develop together. 

Once you have a detailed plan, start looking for funding for your idea.

To support start-up projects in the Mekong Delta in particular and the country in general, FundGo Creative Startup Investment Fund has also been established in Can Tho city. With abundant capital and a wide network of partners, FundGo always actively coordinates with units in linking and supporting capital for potential start-up projects, and aims to promote the development and innovation of the start-up community.

FundGo commits to providing capital to potential startups

Starting a business is not an easy process, especially when startups have difficulty with capital. To start a business, capital is a huge barrier, but this problem can be completely solved. With the above sharing, FundGo hopes that those who want to start a business but do not have enough capital will be better prepared, thereby gradually realizing their ideas.