Maybe this guide is your starting point if you have ever dreamed of running your own business but have no money. A general idea about starting a business starts with hefty cash at hand. Many successful companies, created from a penthouse, tell dramatic stories about their success. However, the truth is most of them started with little to no money!
Starting a business takes effort and years to be successful but starting your journey with no money is different from starting with no resources. Having more resources means the lesser amount you need to create a business. We mean intelligence, social circle, imagination, studies, knowledge and experience, time availability, and so on by resources.
8 Practical Tips To Start A Business With Little to No Money
There are countless legit reasons to start your business. The pandemic of COVID-19 has taught us a lesson of saving more and having a ‘backup’ should you lose your day job! If you have not yet started a business, this is probably the right time to do it. Now let’s check the practical tips you should follow to start a small business with little to no money and the biggest challenges you will face along the way.
Unless you have any idea at hand, you cannot start any business. There are so many ideas or inspirations around you, and even a single phrase can trigger some good business ideas. For instance, you can think creatively about ideas whenever you hear ‘quick service’ or ‘customized’. You can tweak these ideas to create your whole business idea. But keep your concept simple.
2.Devise A Business Plan
To have the right business plan make sure it is precise, explaining your business well and clearly. An ideal project should be of a single line, and your product or service should not be complicated. A good business plan also has a simple budget. Okay, we know we are talking about starting a business with no money, but some ideas will require some cash.
Depending on your business idea, you need to see how much money you need and what resources to kick off your business. These resources can range from experience, time, partners, clients, etc. And above all, you desire and determination to take action. Unless you are willing to take quick action, you cannot start your business at the right time.
3.Think About Financing
When you have no money and need to start your business, you look for financing options. If you are really out of cash, you can think of only one thing: look for loans to get funds. Be it from your friends, family, or financial institutions such as banks. If you already have experience in your field, you can think of different financing options.
Although borrowing money from friends and family can seem attractive but not very recommended, you will never want to jeopardize your relationships over money matters. You can consider small business funding opportunities from the government, which offers various funding opportunities for startups to encourage them. The last option can be a good option for you to start or take a loan from banks and financing companies. But you have to be careful before signing the agreement because they charge interest and have deadlines that will affect your credits score.
4.Save Every Cost
If you find no other option, you can start your business online to save on the cost. You can let go of excessive rents, services, and even salaries. Your internet can do much more than you think, and It can be your sore, marketing tool, your mentor, in fact, everything.
Do tasks yourself whatever you can to save cash and new skills. The more experience you will have, the better entrepreneur you will become. Also, try to learn new frugal living tips to decrease your expenses and save extra cash that you can use to sponsor your business.
5.Get For Free, Whatever You Can
If the idea of starting a business with no money scares you, it is important to focus on the things you can do without money. Focus on what is essential for your business; for instance, do you need a website or do the job using an FB page? Does it make more sense to design your marketing flyers on Canva yourself? So, when you carry out different tasks yourself, you develop multiple skills.
6.Have At Least 6 Months Saving In Backup
It will not be ideal to use your savings accounts, but you have to be honest with yourself about how much money you will spend. Also, how much profit you will generate. And then you have to analyze how long it will take to generate those profits. In general, it takes six months to see the profits. So during those six months, you should have enough cash to meet your expenses so you can focus on your business.
7.Sell Your Product Or Services To Your Family And Friends
Your first market is the people around you because It s will cost you $0 to market your services to them. You can reach them easily through WhatsApp, FB, or other social media channels. Moreover, you can ask for their feedback to improve the quality of your product or service. Before selling your product to a larger audience, you will already be testing your product.
8.Take Advantage Of Angel Investors
You must have heard about angel investors. Well, they are there for a good reason- when you need some cash to scale your business. Unlike financial institutions or other business capitalists, they are ready to give their own money. These are the investors from your contacts providing financial back to your business.
Biggest Challenges To Learn New Skills Along The Way
Lets’ accept one fact: while working for someone else, you don’t learn as much as you do while running your own business. When you learn new skills, you remain mentally sharp and active, positively impacting you and your company.
You Become An Expert!
Your passion for learning more and more about your industry makes you an expert. In a full-time job, you have a very limited chance to do what you love and be paid for it. Whereas, in your own business, you can learn what you love as much as you can and charge for your services. You can take training and certifications and keep your portfolio up to date. You attract more business opportunities when you showcase yourself as an expert and prove it.
You Become More Determined Towards Your Goals
Running your dream business does not only take love and passion, and determination is the drive that keeps you going towards your goals. When you realize that you can do more and deserve more, you have to prove yourself. And when you do that, your determination takes you through all those tests successfully.
When you make decisions on your own, you learn to respect your decisions and yourself. As opposed to it, in a job, you might have at some stage put your self-respect aside and fulfill what your manager or boss says. No doubt, in your own business, you have to make some concessions, but it becomes your decision to do it entirely. You will know when and how to give concession and how much of it. That being said, a higher level of responsibility makes you respect yourself more.
Create Job Opportunities
When you have your own business, you need a team to run it. Being your boss means you create more job opportunities ditching unemployment. If you want to work on an idea, you do it yourself and take the reward instead of letting your boss do it. When you find the right talent, you benefit your own company and provide a platform for others to have practical learning.
Bigger Financial Independence
Today, everyone is looking for financial independence in one way or the other, which does not come easy. You have to take risks and make decisions on investment expenditures etc. But you will also reap the benefits of your risk and hard work. You don’t need to wait for the bonuses given your boss’s wishes.
Creating Your Own ‘Brand’
When you establish your business and become an expert in your industry, you become a ‘brand’. Regardless of your industry, people will start trusting you because they are always looking to follow trends and new experts in the industry. So, if you have an idea and your boss does not approve of it, you lose a big opportunity. On the other hand, you have full freedom to test those ideas and lead from the front in your business.
Freedom Of Self-Expression
When you are a brand, you have complete freedom to express yourself and your creativity. You will have the resources to bring your ideas into reality. You can take risks and hold yourself responsible for them entirely. And when your ideas strike the cords, the success and recognition are immeasurable.
A Legacy For Generations To Come
Your own business is a legacy for your children and then their children. When you pass, your efforts will not go in vain. You put the foundation, but your kids don’t have to put in the same efforts and only have to run a machine you created. This can turn into a family business that runs into generations. Apart from setting up a business for your kids, you can set an excellent example of handwork, passion, and determination.
If you are willing to risk and start your own business even with little money, go for it. Don’t wait too much for the right time because the right time is when you take action. If you have your day job and don’t feel right to quit at the moment, try a side hustle. Eventually, you will be experienced enough to build your business empire. Good Luck!