I Don’t Have Enough Finances To Start A Business
When it comes to financing your business, it’s important that you understand the difference between a micro business vs. a small business, because each one has its own funding challenges.
Depending on the industry and product, a small business typically has more than five employees and you need a lot more money to start one.
They are recognized as “for-profit enterprises” that are independently owned. Generally, they employ 500 or fewer employees and their assets total less than $1 million per year.
Micro businesses are companies with annual sales and assets valued at less than $250,000 per year. On average, they have fewer than five employees, including the owner.
They are a subcategory of small business and develop in a variety of industries, such as photography, house cleaning, accounting, catering, childcare, computer services, event planning, and cosmetology.
All micro businesses, regardless of the industry, require many of the same skills to thrive just like every small business. In other words, they too, need the right systems in place if they want to grow beyond their original foundation, or stay the same size and be profitable.
Even though micro businesses require less capital to operate, small businesses tend to have less difficulty getting funded because they are seen as more financially secure.
Micro business owners in need of operational or startup funding often seek alternative funding methods to collect their required capital such as dipping into their personal savings, applying for a personal loan for business, turning to family and friends for loans, or seek crowdfunding, rather than approaching a bank or an alternative lender.
If you are a micro business, you still need to structure your business with the same proven systems of success as any larger small business, so that if a bank, an investor, a friend or family member looks at what you have setup, they should have no problem investing into your business.
Here is a link to a great article about starting businesses with less than $500 https://www.inc.com/arianna-odell/is-it-possible-to-start-a-business-with-500-these-startup-founders-say-yes.html
Here is another link to 101 different micro-businesses you can start with $100 dollars or less: https://www.entrepreneur.com/slideshow/299327