So you are done with your job and all set to chase your passion? You even thought about a great business idea and are on the verge of translating it into a real profitable business! But, the only issue is that you are short on cash?
Well, now that sounds like a red flag. Or does it? Can you actually start a business with no or minimal money at hand? Hell yeah!
Lack of funds should be the last factor that keeps you from your entrepreneurial dreams. If you are confident enough about your idea and have a clear vision as to how to materialize it, you are all set to go!
Keeping this in mind, here we have brought you top seven tips to start a business with no money. Read ahead and discover the secret.
Do Not Quit Your Job
It is good that you are brave enough to dream of starting your own business and try your luck at entrepreneurship, however, it would be even better if you do that with a sensible mind and a practical approach. It does not matter what your bank balance is, you must have a constant source of flowing income however small the amount may be. Also, it is highly recommended that you be a little patient and hold onto your current job.
In case you do not have a job at the moment, find a job and nurture your dream simultaneously. Having a job at hand will give you the required confidence and let you handle the business risks with more confidence. It is important to understand that having a job alongside will, however, be extremely demanding. It will require you to spend extra hours on your business goals and work very hard. However, once you adapt to the routine and gracefully transit from an employee to a business owner, you will not regret even a single hour spent extra.
Invest In The Right Kind Of Business
In addition to securing a job, it is crucial that you invest in the right kind of business. Avoid starting a business that demands a hefty investment in the beginning. Even if it is your dream business, hold on to it for some time. The trick is to start with a type of businesses that you can start with minimum or almost no cash. Carefully develop a strategic business plan along with a wise financial model. Some possible business options for you may be – building a dropshipping store, an online store for a popular fitness apparel brand, printing of customized t-shirts etc.
Reduce Your Needs
Another professional tip for starting a business with minimum money is to reduce your needs. A study has revealed that a lot of small-scale businesses get started with an initial investment of $3000 or even less. Plan your business model in such a way that it requires just the absolute necessities, to begin with.
For instance, if you are a freelancer looking forward to starting a business of your own, printing and selling of casual dresses or any other business, team up with one or two freelancers like you and collaborate online while working from your respective homes. This will save you from renting the space for an office. You may also reduce your employee expenses by being the only employee at the start. Invest in only those expenses which cannot be avoided. Licensing and legal fees are two examples of the same.
Keep It Manageable
As a novice entrepreneur, it is advisable that you keep things manageable. You may expand your domain as far as you please gradually, but do not let the episode get over complicated. There is no use wasting a lot of money to come up with something that is overly expensive and does not offer any surety of return on investment.
Start with baby steps and narrow your focus down to the absolute essentials. Make sure that you test your business idea and cut all the unnecessary features and add-ons. Understand your target audience well and stick to their requirements. Do not venture too far. For instance, a lot of real estate agents start with developing a personalized marketing model followed by launching a professional website of their own. Thus, they expand the businesses gradually.
Wikipedia defines crowdfunding as ‘the practice of funding a project or a business venture by raising small amounts of money from a large number of people’. This is achieved via the Internet in a large number of cases. In case you have minimal or no money, to begin with, crowdfunding platforms like Kickstarter may come in handy. These platforms have helped a lot of entrepreneurs realize their business dreams and achieve their business goals. They have changed the way entrepreneurs traditionally used for raising funds for their business setups.
Starting a business with no or minimum money will not seem that tough if you connect with the right people who can help you with funds or help you raise funds. Attend all the major and minor events and trade shows related to entrepreneurship or business ventures where you can possibly spot an investor or two. For instance, if you are planning to start a real estate businesses of your own in Miami, you can possibly start meeting popular realtors in Miami and get a knack of the field.
Sign up for various online forums and join the entrepreneurship groups on social networking websites where you may find useful tips, tricks or maybe even potential investors for your venture. In fact, a lot of venture capitalists and investors are quite active on social media. Try your best to woo them with your well-carved business model and you will be all set to get started.
Lastly, you can always secure a loan in case you have an utter shortage of funds. Many loan programs have been launched with an aim to help budding entrepreneurs. The loan programmes offered by the Government of the USA for entrepreneurs are operated by the Small Business Administration (SBA). Make sure that your business meets the necessary criteria to qualify for the loan.
These were the top seven tips to start a business with no money. If it is the lack of personal capital that is keeping you from starting a business of your own, think again! You may be missing out on something really great just because you are afraid to go too far. It is entirely possible to venture into entrepreneurship with little to no capital at all. All that it takes is acknowledging the fear to yourself and take a leap of faith. You can do it!
She is a blogger who loves to write in different verticals. She co-authored Supercharge Organic Traffic: A popular course focusing on Organic Traffic for E-commerce. Her hobbies are traveling and reading.