Starting a business is a challenging but exciting venture, and it can be especially daunting when one has a low budget. However, it is possible to start a business with a low budget, and there are several strategies that entrepreneurs can use to get started.
In Rwanda, many successful businesses started with a low budget, and this article will explore some of the ways that entrepreneurs can do the same.
Firstly, entrepreneurs can start by identifying a need in the market and finding a way to address that need. This means conducting market research to understand the target audience, their preferences, and their pain points.
One entrepreneur has a clear understanding of the market, they can start brainstorming ideas for products or services that could solve a problem or meet a need. By focusing on the needs of the market, entrepreneurs can create products or services that are in demand and generate revenue.
One example of a successful business in Rwanda that started with a low budget is Avo Care Ltd, a private limited company producing avocado oil healthy products. High-quality, organic, cold-pressed, and extra virgin avocado oils.
While establishing Avocare, the CEO and Founder NIYIDUKUNDA Mugeni Euphrosine, had only 2000 Frw.
Before starting her business she was challenged that she had no funds but regardless, she bought fresh avocados for 2000 Rwf and tried to process oil from those avocados.
She managed to have 60 ml of oil (at the third trial) that she kept in a simple Inyange water plastic bottle. She took this small quantity of avocado oil that was processed in what she calls her simple self-discovered way, in a competition that featured young innovators and her project won 400,000 Rwf.
Entrepreneurs can start a business by leveraging their skills and expertise. This means identifying the skills and knowledge that one already has and finding a way to monetize them.
For example, if someone is a skilled writer, they could start a freelance writing business. By leveraging one’s existing skills and knowledge, entrepreneurs can start a business without investing a lot of money upfront.
One example of a successful business in Rwanda that started with a low budget is Murekatete’s store. Based in Musanze, Murekatete started her own little business where she sews rugs, carpets, interior decorations, clothes, and other things.
She started her business with only Frw 5,000 and grew into a successful brand that creates high-quality rugs, carpets, interior decorations, clothes, and other things using local materials and traditional craftsmanship.
She was able to grow the business by identifying a need in the market for affordable rugs and all sorts of decorations.
She said, “I took 5,000 Frw to buy thread, crochet, and tapestry [a tool used for sewing]. I made a little rug and posted it on social media. A person who liked it also asked me to make a carpet for him, he gave me 10,000 Frw to make the carpet he wanted.”
Murekatete doesn’t use any fancy machines, she uses ordinary tools, so she spends at least four days making a carpet. She started with an investment of 5000 Frw and currently employs four employees; she aims to have at least five workers this year.
Today, Murekatete has a thriving business with a loyal customer base.
Entrepreneurs can start a business by finding creative ways to save money. This means being resourceful and finding ways to reduce costs wherever possible. For example, entrepreneurs can start by working from home instead of renting an office space, or by using free or low-cost marketing channels such as social media and word-of-mouth. By finding ways to save money, entrepreneurs can stretch their budgets further and invest more in the growth of their businesses.
Another thing would be seeking support from friends, family, and the community. This means reaching out to people who believe in the vision. By building a network of supporters, entrepreneurs can get the help they need to start and grow their businesses.
On that note, starting a business with a low budget is possible, and there are several strategies that entrepreneurs can use to get started. By identifying a need in the market, leveraging one’s skills and expertise, finding creative ways to save money, and seeking support from friends, family, and the community, entrepreneurs can start and grow successful businesses in Rwanda.
With determination, hard work, and a little bit of luck, anyone can start a business with a low budget and turn it into a thriving enterprise.
