Gen Z startups: Where to start with little capital?

(Dan Tri) - Lean startups are effective when Gen Z disciplines data, controls cash flow, focuses on core products, puts customers at the center, and validates ideas for sustainable development.

Lean Startup with Just a Few Million Dong

No longer a game for the "big guys" with a lot of capital, the new wave of startups is witnessing Gen Z - the generation born after 1997 - starting a business in a very unique way, which is lean, high-tech and trend-catching.

With just a few million VND, many young people have opened online stores, taking advantage of AI, e-commerce and TikTok to turn small ideas into tens of millions of VND in revenue each month. This trend clearly reflects the spirit of creativity, independence and the desire for financial freedom, which Gen Z desires more than any other generation.

Kim Vy (born in 2000, Ho Chi Minh City) is one of the typical Gen Z who chose the lean startup direction - low capital but high efficiency. Starting with only a few million VND, Vy tried her hand at printing on-demand refrigerator magnets.

Inspired by foreign models, she realized that this personalized gift segment was still untapped in Vietnam. The novelty and the “custom design” factor helped the product quickly attract users.

Kim Vy started her business with only a few million VND in capital (Photo: NVCC).

To save costs, Vy works from home, invests in her own printers and presses, and directly handles the entire process from design to packaging. Instead of spending money on advertising, she chooses to upgrade machinery and materials to avoid the risk of obsolescence and damage.

In addition, Vy also built a personal TikTok channel, sharing behind-the-scenes photos and "arousing" viewers' curiosity. Thanks to regular, close and creative content, Vy's booth gradually attracted customers through online word of mouth. Each magnet photo is sold for about 25,000 VND, bringing in 8-digit revenue, with orders not only domestically but also internationally.

The small room has now become a “magnet photo printing workshop” serving hundreds of customers each month. Vy believes that product quality must always be the top priority, instead of just following advertising. She advises young people: “Be brave to try your hand if you find a niche market that is different enough to explore.”

Thanh Ngoc (born in 2004, Phan Thiet) is another example of the lean startup spirit that many young people of Gen Z pursue. Starting from things that people throw away such as seashells, sea snails, and coastal gravel, Ngoc turns them into handicrafts imbued with the breath of the ocean.

Without a professional degree or a large capital, she learned on the internet and created souvenirs such as decorative mirrors, hairpins, bracelets, etc. with a starting cost of only about 800,000 VND to 1 million VND. The materials are recycled, no need for premises or a large workshop. Whatever she sells, Ngoc turns around and invests again.

Initially operating in a corner of the house, Sea's Cloud Shop - started by Ngoc - has now become a stable job for 15 people, mainly local middle-aged women. Each month, the small workshop completes 2,000-3,000 products, retailing via Shopee, TikTok Shop, Instagram, with an average price of 100,000-200,000 VND/item. The products are not only consumed domestically but also exported internationally.

Gen Z Thanh Ngoc started her business with seashells and snail shells (Photo: NVCC).

Phuoc Nguyen (born in 2000) decided to open a milk tea shop in District 7 (HCMC) when he saw the great potential of this product, especially among young people. However, after nearly 10 months of operation, the shop has not yet made a profit and is in the process of recovering capital. Although monthly revenue is about 30 million VND, operating costs and payables have caused the shop to lose nearly 20% compared to the original plan.

The biggest difficulty for Nguyen is finding suitable premises and handling paperwork related to business households and taxes. Although revenue has improved, operating costs have not yet reached the target, especially fixed costs such as premises and taxes account for up to 60% of total monthly expenses, making the profits almost insufficient to compensate.

Nguyen believes that in today's fiercely competitive environment, understanding tax and legal regulations is very important to control costs and avoid financial risks. Young entrepreneurs should carefully research the market and related regulations before starting to limit unnecessary mistakes and losses.

Starting a business is like going into the woods without a map.

Ngoc Luan (27 years old), CEO of Gen Z Nutrition chain, said he started his business from his passion for sports and the desire to provide quality functional foods to young people. He believes that there is no perfect time to start, the important thing is to prepare carefully and control well in the context of many economic fluctuations.

Having faced lack of capital, lack of experience and declining market confidence, he overcame them by reviewing the entire system and making timely adjustments. According to him, the reason why startups fail often lies in illusion and lack of determination.

Luan emphasized three vital principles: tight cost control, maintaining core values, and continuous innovation. To him, the entrepreneurial spirit is daring to fail, daring to learn, and remaining steadfast in the ideal: "Starting a business is like going into the forest without a map, remember why you started."

Starting a business doesn't wait for "perfection" (Illustration: Freepik).

Master Du Tieu Duong - Head of the Economics Department,FPT University - believes that the big difference of Lean Startup is "validated learning". That is, don't spend too much time perfecting the product, but make a test version first, then listen to feedback and gradually adjust. This approach is especially suitable for students, or for those who love technology, are quick to respond to new trends and know how to use AI to shorten the process.

Mr. Duong likened social media to a “giant laboratory” where young people can test ideas without spending money on surveys. But for this model to be effective, Gen Z needs to practice the habit of making decisions based on data, not emotions.

In addition, reading original documents, joining startup communities, and finding experienced mentors are also practical ways to learn. He also emphasized an important principle: “Done is better than perfect” - meaning don't wait until the product is perfect to launch, but do it first, improve later.

With data discipline and a spirit of learning, lean startup is not only a cost-effective way to start a business but also an opportunity for Gen Z to build a sustainable and flexible business model in a volatile era.

According to Master Le Anh Tien - co-founder and CEO of Vietnam Chatbot Technology Joint Stock Company, the "Build - Measure - Learn" mindset helps you boldly bring sample products to the market, measure real feedback and make continuous adjustments.

Gen Z’s strength is the ability to keep up with technology, exploit digital tools and social listening to grasp customer needs without having to spend extra money. Thanks to that, they do not need to spend a lot of money on advertising but still know what customers need and how they respond.

Mr. Tien believes that lean startups are not just a short-term trend. In fact, many young startups in Vietnam have succeeded by starting small, choosing the right market needs, and flexibly adjusting when necessary. However, he also warns that if you make too many products at the same time without controlling the cash flow, startups can easily fall into a "race to exhaustion" situation.

It is important to always put the customer at the center, start with a prototype, listen carefully to feedback, and then expand. Tools such as Lean Canvas, Key Performance Indicators (KPIs), and continuous feedback loops will help young people manage their work more systematically.

What will help young startups survive?

Master Du Tieu Duong commented that in the context of economic difficulties and global supply chains affected by geopolitical factors, young people need to focus on the essential needs of consumers.

The lean business model helps startups optimize costs, control risks and develop sustainably in a volatile context (Illustration: Freepik).

Simple, efficient business models that are less dependent on imports will help businesses optimize costs, minimize risks and take advantage of digital transformation opportunities, thereby building a foundation for sustainable growth.

According to Mr. Duong, cash flow management is a vital factor for every start-up. Businesses need to develop a clear financial plan, control spending reasonably and make the most of existing resources. Identifying the right target market and verifying actual customer needs also plays a key role, helping to minimize investment risks, especially during the period when resources are limited.

Continuing this point of view, Master Le Anh Tien emphasized that the essential factors that young people need to focus on when starting a business in a volatile environment are market testing, cash flow management and building a support network.

In the early stages, it is important to manage cash flow closely with priority given to revenue-generating investments. In addition, building a supportive ecosystem of advisors, startup communities and strategic partners helps young people avoid unnecessary mistakes and develop sustainably.

Meanwhile, Mr. Nguyen Tran Le Thanh - Lecturer at FPT University - believes that starting a business is not simply a matter of making money but must first come from passion, creativity and the desire to solve practical social problems.

According to Mr. Thanh, the business model is just a tool to realize the vision, not to determine the success or failure of a startup. The core factor is that the enterprise must maintain faith in the value of the product or service, and continuously update knowledge and information to adapt to the global competitive environment and the increasingly deep integration process.

To avoid early failure, young entrepreneurs need to focus on updating their knowledge and market context, developing problem-solving thinking instead of just focusing on making money, and especially choosing the right companion - co-founders who share the same vision, values and entrepreneurial spirit.

In addition, the spirit of daring to think, daring to do and daring to fail is also an indispensable factor. “Starting with the most difficult tasks is the fastest way to learn, practice and get closer to success,” Mr. Thanh emphasized.

Gen Z - a dynamic, creative and daring young generation is gradually making its mark on the Vietnamese startup ecosystem. With a spirit of not being afraid of change, many young people have boldly started businesses in new fields, requiring breakthrough ideas and perseverance.

However, the path to starting a business is never easy, especially when they face barriers in terms of capital, management experience or pressure to maintain cash flow in a fiercely competitive market.

The series "Gen Z Startups" not only outlines an overall picture of the trends and reality of startups among the young generation, but also depicts inspiring real-life stories - young people who dare to think differently, do differently, and are willing to stumble to grow up.

The goal is to spread a positive message about the spirit of innovation, lean but sustainable, encouraging young people to dare to try - dare to fail - dare to stand up.

Each shared story is not only a valuable lesson for the startup community, but also contributes to motivating and inspiring Gen Z to continue to rise up and contribute to the socio-economic development of the country.

Source: https://dantri.com.vn/kinh-doanh/gen-z-khoi-nghiep-von-it-nen-bat-dau-tu-dau-20250804180659429.htm