How To Start A Business With Small Capital

The number one stumbling block in starting a business is capital. The great thing about network marketing or multi-level marketing (MLM) is that it opens doors of business opportunities to aspiring entrepreneurs.

The main reason why most people decide to start a network marketing business is the income potential.



Compared to traditional businesses or franchises that involve lots of time and money to begin with, starting a network marketing business requires only minimal start-up costs with the potential to make it big.

Usually, you can already become a distributor or member with a network marketing company by just using some of their products. Becoming a distributor gives you access to further discounts and the right to sponsor people into the business.

After that initial investment, you can already start making money through the different incomes in network marketing:

  • Earned or working income – when you have personal sales
  • Passive income – when someone you sponsor or in your team makes a sale
  • Residual income – when the customers and organization you have built continue to produce sales


The low capital advantage combined with the big income potential is often used as a selling point by most network marketers. Now, that’s ok because it IS a big advantage for someone who seriously wants to start a business and lacks the capital.

small capitalSince capital won’t be an issue anymore, almost anyone can begin a network marketing business. Now this might look like a good thing, BUT the average Filipino is actually trained to think like an employee, not a business owner.

An employee earns working income, NOT residual income. As an employee, I came to work almost every day in order to receive a regular paycheck (working income). A business owner, on the other hand, may have to build his business for years before he starts receiving residual income.

Residual income in network marketing will come to you after the work is done, after you have built your organization, which means helping the people under you create their own teams as well.

It’s not enough to sponsor 2 people, then sit back, relax and wait for the money to come in, as what they say in most opportunity meetings.

You have to do your work!

Most of those who fail in network marketing either chose the wrong company or just quit too soon because they were still thinking like employees expecting to get instant results (15th and 30th pay).

Don’t Be Gullible

There are network marketers who don’t know any better and still pitch the “get rich quick and easy,” and there will always be gullible or greedy people who will fall for it and get hurt.

When they don’t make money the first few months or even days, they quit and spread the word that “network marketing doesn’t work” or “it’s a scam.”

This is one of the reasons of the negative perception of network marketing. It’s actually the people doing the marketing who are misleading, not network marketing itself.

If you perfectly understand the concept, you will realize that achieving success in network marketing even after 3 to 5 years of part-time or full-time effort actually BEATS the 40-year plan of employment!

Once you have built your organization in network marketing and receive residual income, you will have the financial security and time freedom to do anything you want for the rest of your life!

So, make sure that you’re joining a network marketing company that you can work with long-term. Once you find the company that’s right for you, ACT as if you invested millions to put up your business even if you only invested a small capital.

This way, I think you will do everything to learn EVERYTHING about your business and work harder on it rather than just treat it as a hobby with no commitment.

Are YOU committed to building your business?


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7 Responses to "How To Start A Business With Small Capital"

  1. jonsihay says:


    I love to read almost all your posted articles. If I could be qualified in your team, i may be joining your team. Hope we can talk even by phone. Please call me at: jonsihay

  2. annette says:

    Thanks for your comment, Jon. Glad to be of help. I removed your phone no. in the comment for your own privacy, is that ok? 🙂 I will be in touch with you shortly. You got a good start with your blog/site. Keep it up and look forward to updates on this site too. 🙂

  3. Noel says:

    Hi Annette thanks for all the positive information. I’m in UAE this tine and I have join one of mlm in phils do you recommend this kind of network marketing style? Hope you can provide your comments on this one thanks and God bless!!!

  4. annette says:

    Hi, Noel. Welcome to the exhilarating world of MLM! 🙂 Which network marketing style are you pertaining to?

  5. Cathrine says:

    Hello po…nice blog…

  6. annette says:

    Thanks, Cathrine. 🙂

  7. Paolo says:

    Hi Annette this is a very informative post about Network Marketing the right way I also made an article with the same topic, and hopefully to educate potential marketers on the right way and to avoid people on misunderstanding MLM. I also threw a guide in my article the 6 ways to be successful in Network Marketing the right way.

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