One of the biggest things you need to consider when starting a business in Thailand is to determine how to make use of your funds to ensure success? Many of the time, the business owners have very limited fund and at the same time, they do not even have any access to funding from outside. In such a scenario, every owner will want to get the maximum return on each of the money spent.
Now the question is how much fund is considered as the perfect amount of money? The perfect amount of money is a paradox. In reality, if you are having a genius and progressive marketing idea coupled with the right amount of funds then it must be easy to get someone to fund it. But the problem is that we do not have this kind of idea. The investors only have the thought of investing, not necessarily they are equally passionate about the idea. You have to consider two things basically for achieving your objectives- Selling your idea in the wider market domain and trying to gain customer base as soon as possible. This also includes maximizing your funds as far as possible.
Obviously, there some reputed Venture Capital companies in Thailand or you may try out some traditional methods to get your project financed. We, at startup in Thailand also indulge in specific project financing or joint ventures,
There are various ways by which you can use your limited fund. There are loans and savings that can also help in your business. But at the initial stages of business, it is always good as an idea to focus on cost efficiency. If you are planning to start a business in Thailand, and you have limited funds with you, here are a few tips that will help you to maximize your fund.
Start from Home
The majority of the startup fails because the owners want to become a millionaire too soon. They try to expand their business at the very initial stage and make a lot of investments even without thinking of consequences. In the initial stages, it is important to start with a small working group. Do not just keep on hiring staff because that will not help at all. Since you have just started your business, there is no need of renting or hiring space or office for this. You can start from your home itself. A big space is needed when you have a big working force but this is not essential for all businesses.
It will depend on the type of business you are doing. You can save a lot of money without paying any rent for a commercial property. This also means that you do not have to pay for other supplies and furniture. You can always have a big space for working but you can do that only when your business expands. But it will be a good idea if you start from home at a very basic level. You can also try renting a small incubation center at Startup in Thailand which provides all-inclusive desks and outsource of other services for professional startup projects at an affordable cost. Here are 6 Best Practices for working from home
Think of an innovative idea
One of the best ways to start a business in Thailand is to think of an innovative business idea that will be cost-efficient. Manufacturing and retailing require a lot of funds to execute, therefore, it is not a good idea for your business. However, you can think of alternatives like consulting services, which are a good choice because you will only need the knowledge to implement. You can also grab the opportunity to sell your knowledge online and make money out of that. You can also earn profits if you can design graphics or program apps. Even handcrafted goods can be sold online at an affordable price. You need to think of those innovative ideas to start that does not require many funds.
Limit your expenses at the initial stage
Keeping your expenses to a minimum at the early stage of a business is a key to success. There is no need for a huge space or a catered meal. Curtail these expenses so that you can have sufficient capital for growth. The majority of the startups focus on the wrong things in the initial stages like high-fi amenities, fancy office decors, expensive personnel, and other amenities. There is no need for such things. Be more productive first and you will have a lot of customers for your products and services.
Drive-up the sales
For any startup projects, business development is the key to success. However, new owners often end up spending a large number of their expenses on marketing. Marketing is always a great idea for advertising your brand and to attract a large number of customers. However, you need to understand that promoting your brands online by advertising it on the websites does not guarantee you that the visitors will be your customers. They might check your website but may not be interested. Since marketing charges a huge cost, it is essential to get back double profits than the amount you are spending on advertisement. If you are spending enough on external services, make sure that you think of proper business strategies that will help you to earn more profits. Therefore, sales enhancement is a must. You can earn profits by making more leads. Because funds are limited, the startup capital that is spent anywhere else will be considered as inefficient. Be sales-oriented in the initial stages rather than marketing oriented.
Choosing the right workforce
Workforce matters a lot. This is because you have to pay a good amount of salary for them. An inefficient workforce with low productivity will only lead to wastage of funds. The net profit will be zero. In the case of the IT industry, the programmers and the engineers are expensive and they are responsible for creating the right product for your business. So invest in them. But never make your company top-heavy with too many senior persons with high salaries. Do not overstaff. Keep a limited number of employees but make sure that they are efficient and capable enough for your company. The workforce has to be increased once your business starts growing. One of the best startup options for you would be to be a part of the digital technology in Thailand.
Management of cash flow is essential
The majority of the startups fail because of many reasons but one of the common reasons includes lack of sufficient funds. You have to be strict enough with your funds and maintain a record of your transactions. This includes how money is coming in and going out. Doing business in Thailand is easier if you are managing your cash flow properly. If you are not staying on top of it, you are putting your business in a very critical position. Your incredible idea will seem meaningless if you don’t have funds to implement it. So stay without your budget and keep a record. If you think you are not equipped to handle finance yourself, then it would be wise to have a suggestion from a startup consultant who can provide an immediate solution for you.
Do more work yourself
Recruiting and hiring an employee is a costly affair. For small businesses and the new owners, it will be absolutely great if all the major working operations are handled by themselves. You will find online services or tools for this purpose. You can make use of that. There is various business software that helps in dealing with things like accounting and social media. It’s true that you have to spend a few hours more but this will save a lot of your cash. Make sure that you pay yourself. Putting your efforts and dedication fill not energize your working spirit. Set your targets, do it, and pay money to yourself. You do not need to pay a fat salary but make sure that you pay sufficient money for living. Give sufficient time to your business and try to eliminate financial stress as much as possible! Initially, these things will help you to start a business in Thailand.
Set financial goals
Though you start your business with limited funds, it is important to establish your financial goals. Your goal should be such that it is can be measured and reached. The daily, weekly, and monthly revenue goals help the business owners to stay in track and it also helps in making necessary adjustments for constant growth and improvement. Achieving small achievable goals boosts confidence and empowers you to work harder.
So if you are planning to start a business in Thailand, make sure that you follow these baby steps, and one day you will surely have enough funds for your business to even diversify. Managing every little thing about your business within your budget is an art. Before you start, make sure you create a list of your own writing down the expenses that you will have initially. Go with your hunch but believe in practicality.
In case of any difficulty, have a word with the startup specialist, Andy Aditya who can guide you through the entire process at a minimum cost.
Interesting Reads :
- Representation in Thailand
- Starting a business with Angel Investors in Thailand
- How important is funding for a Startup Project?
- Fastest Way To Make $1 Million in Thailand
- What you should consider before doing business in SE Asia
- 10 Key Steps to endure your Startup success in Asia
- Why do you need for Specialist to Startup in Thailand?
- How to ensure growth for your startup