How to start a new business venture with just £100
Thinking about starting your own business, but feeling held back by your lack of capital? Don’t worry – all you need is £100, says self-made multi-millionaire Vince Stanzione
“Many people can’t believe it, but you really can do it,” says the former city trader who started his first business aged 14 and made his first million by the time he was 26. “I’ve done it many times and today, thanks to technology and with more tools available on the internet, it has become even easier.”
“I’m not talking about going all-in and giving up your day job,” he explains. “These are businesses that you can start at home with what you’ve already got, such as a home computer or your iPad, to sell a product or provide a service online.”
Keeps costs low
Stanzione reveals ‘how to’ products such as DVDs, audio, books or membership websites – information products that you can sell on either Amazon or eBay, or on your own website – can be very successful.
“These are all things you can produce yourself for a relatively low cost,” reveals the entrepreneur, who also shares his secrets in The Millionaire Dropout: Fire Your Boss, Do What You Love, Reclaim Your Life. “When you’re starting on a low budget you don’t want products which are going to cost you a lot of money that will tie up thousands. You want things that give you a very high margin – something that costs you £1 you can sell for £10. Jewellery is a good example.”
Rather than selling what you want, give people what they are looking for
Once you have your idea, Stanzione says the next step is to find out if there is a market for it. This can be done very easily – and for free – on Google, or by looking at sites such as eBay or Google Trends to see what people are searching for.
“Rather than selling what you want, give people what they are looking for,” he advises. “It’s a lot more productive than trying to ram something down people’s throats. Remember you don’t have those multi-million pound budgets the big companies have to try to convince people to buy. You’re looking for what the hot markets and topics are.”
Seasonal can be successful
He also points out the importance of exploiting the potential seasonality of markets. “People spend more money around holidays such as Christmas or even Halloween now,” Stanzione says.
“So you can tailor-make offers to the time of year. Don’t be afraid of having a business that is only good for Christmas. Of course you can have more than one seasonal business, so at Christmas you might sell, for example, Christmas jumpers, and in the summer you sell swimwear. That’s the nice thing about a small business – you’re flexible and you can move around.”
Stanzione adds that those feeling daunted by the thought of starting on their own don’t need to know how to do everything just because they are a one-person set-up.
“There are many ways you can outsource some of your tasks,” he continues. “Say for instance you don’t know how to convert your product to a Kindle conversion – there are sites now such as fiverr.com where for just $5 you can find someone who will do that for you. Or try guru.com if you need an expert in a particular field.”
Wants over needs
And his most important rule for success?
“Don’t sell people what they need,” he says. “Sell them what they want. People don’t need a Ferrari – but they ‘want’ a Ferrari. People do ‘need’ life insurance but it’s rather hard to sell something like that. Stick to things that people want – they’re much easier to sell.”
For more great start-up advice go to www.director.co.uk