Ask Anand

Question:

I have completed my B.E. and plan to start a start-up. But I don’t have much capital. Is it possible to start a business using low capital? Can technology help?

Aniket Jadhav, Yavatmal 

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Answer:

Dear Aniket,

Congratulations on completing your BE.  Indeed that are several technology businesses that can be started and grown with relatively lower levels of investment.

When you think about the business that you are exploring, think about the cash flows.  If you have customers who can pay for your services in line with your expenses, then your investment will be significantly lower.  Trading and services businesses can be set up well with lower investments. On the other hand, products and businesses with high R&D content require much higher investment because you have put the money upfront to build a product before the customers start paying for the product.

There are many technology businesses that can be set up with relatively low up-front investment.

I wish you all the best!

Anand

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