How does this method work?
The biggest decision when starting a business with small capital is choosing what not to invest the money in. Buying long leases, large stocks or expensive equipment before the demand is verified reduces the room for action. First determine the real need of a small group of customers. In each of the models such as service, pre-order or limited production, delivery responsibility and costs must be clearly calculated.
Evaluation with a concrete example
Using the entire hypothetical 20,000 TRY budget on stock may leave no money for packaging, returns and promotion. In a product trial, enter sales commission, shipping, damage and payment term in addition to the product cost. Even if the first sale is made, it may be necessary to pay the supplier earlier. This time difference may be the reason why a seemingly profitable business faces a cash shortage.
Your first application: what should you have?
Design a small trial with a single offer and limited customer group. Write down the spending cap, expected learning, and stopping condition. Check local permit, tax and operating conditions based on your actual job. The output is a simple spreadsheet showing proof of claim and monthly cash inflows and outflows before a large business plan file.