From a young age, Brazilians dream of having their own business. However, until a few years ago, that dream was only possible for those who had money to invest. Another option was informality.
The situation began to change with Simples Nacional, from Supplementary Law no. 123 of December 14, 2006 and Supplementary Law 128/2008, which facilitated the formalization of millions of entrepreneurs, Individual Microempreendedor.
Considering this scenario, 1,350,127 companies were opened in the first four months of this year alone, and small and medium-sized companies account for 27% of Brazil’s GDP (Gross Domestic Product). Therefore, an investment of R$ 90 billion in loans to small and micro companies is foreseen.
In this article, you’ll find advice on the best niches you can take with little capital and what type of micro business invoicing to choose for your business.
The best niches to undertake with little capital
Although most Brazilians dream of starting their own business, it has only become more concrete in recent years for a large part of the public.
Thanks to some changes such as Simples Nacional and MEI, as well as various opportunities generated by digital media, more and more people are opening their own business, their own micro-enterprise.
Check out the best niches you can take on with little capital for the traditional market and digital environment below.
Brazilians have surrendered to electronic commerce. So much so that, according to the Brazilian Electronic Commerce Association (ABComm), Brazil’s e-commerce revenue in the first half of 2022 was R$73.5 billion.
It is soon clear that the market is hot, growing and that there is a lot of money moving around.
In addition, opening a virtual store requires less initial investment compared to a physical store, since there are no space and energy costs, for example.
However, the competition is high, so you need to stand out by choosing a niche, such as underwear, and promote your product on the Internet.
Another similar option is dropshipping, which has even more advantages compared to online shopping.
In dropshipping, you are the intermediary between the supplier and the end consumer in the purchase, so there is no inventory, which reduces the initial investment.
Also, dropshipping is focused on products that are harder to find on the market, so it is necessary to find foreign suppliers.
After that, it’s time to publish the product on your own website or platforms like marketplaces and social networks.
Infoproducts are another option you can take digitally. This means creating digital products like:
Audiobooks and more.
Info products are scalable, i.e. make the product once and it will generate sales indefinitely, and the production price is lower compared to physical versions of the same products.
The food business is one of the most traditional and requires little initial investment. There are so many options: sweet, salty, fit food, frozen food, for example.
Sales can be made in person or online. If you decide to sell in person, be sure to use the internet to promote your product through social media.
Another very traditional niche to undertake that requires low initial investment is trades. And inside there are many options such as fabric, plastic and wood. Plus, you can even customize products like laptops and ceramics.
So, choose the type of business you want to work with and start promoting it online. But take care of the photos and, if possible, advertise on both social networks and e-commerce platforms.
Now that you know the best niches to venture into with little capital, see how to choose the legal nature of your micro business.
Annual income of the microenterprise
Microenterprise (ME) refers to the size of the enterprise, i.e. its classification according to size.
Types of microenterprises
MEI (individual microentrepreneur) is an individual company whose annual income cannot exceed R$81,000.00. In addition, they can only opt for activities of this modality that are among those allowed for MEI, and the taxation regime is Simples Nacional.
ME (micro-enterprise) is a modality for those who undertake alone or in partnership (between two or more people). In microenterprises, income up to R$ 360 thousand, and the tax regime is also Simples Nacional.
EPP or Small Business with a maximum income of R$ 4.8 million. You can also opt for Simples Nacional and you can also participate in public tenders.
Collection and taxes of micro-enterprises
When opening ME records, study each form of contribution, as they differ from tax payments.
Thus, service pays tax on services of any nature (ISS), while trade, tax on turnover of goods and services (ICMS), and industry tax on industrial products (IPI).
Most Brazilians want to be their own boss. In this sense, the number of new companies is growing year by year.
In this article, we present the best niches to undertake with little capital and which type of micro business invoicing to choose for your business.
Reference data: https://www.cnnbrasil.com.br/business/governo-preve-ate-r-90-bilhoes-em-credito-a-pequenas-e-micro-empresas-em-2022/