Money. Capital has always been a major problem for entrepreneurs. When you are an aspiring entrepreneur, even a two-digit investment seems stressful to begin with. This is why I believe that money should not be your biggest concern when starting a business.
Elements that are more important than money to start a business, include excellent communication skills, marketing skills, work ethic and leadership capabilities. If you have these, you can arrange money from different resources for your business, or even start a business with no money at all.
Before moving to that, here is what you should remember. If your ideal business requires any kind of financial investments, then you will have to work hard to gather money to make your dream come true. Sometimes, entrepreneurs keep their day jobs or run another business to collect money for their dream business. Again, not every business requires an investment. I will cover both aspects in this blog.
Step-by-Step Guide to Starting Your Business with No Money
- Calculate the investment you need to start your dream business. Note down the techniques and ways to raise money for the investment. You can keep your day job, especially if you are the primary breadwinner of your family, or have any other such responsibilities. Otherwise, start earning from the businesses that do not require an investment, to save money for your primary business.
- Prepare a business plan with respect to your income and savings. It includes the initial investments, financial backup, target audience, products, services, etc.
- While collecting money for your business, do a competitive market research to list down your competitors. Create a plan of how you can make your business stand out in the market.
- Test your ideas by conducting surveys and gathering audience’s feedback. It will help you analyze the market demand of your products or services.
- Build your skills in the free time you get.
- Consider using your personal assets to start your business from scratch. Seek more ways to minimize the cost of initial investment.
- Build your network in the industry.
- Prepare a fool-proof marketing plan for your business.
- Launch your business when you have enough investment. If it is a no-investment business, then this is the right time to launch it.
- Be prepared to accept the challenges and criticism. Think like an entrepreneur and never give up on your dream.
Manufacturing businesses require the initial cost of supplies or investments. You can manufacture commercial goods or handmade products, and sell them on eBay, Amazon and other online platforms. Even if it is not a manufacturing business, you will still need money for registering your business, paying license fee, purchasing subscriptions, paying operating expenses and hiring employees.
Following are your options for raising money:
- Borrow business loan from a bank
- Raise funds
- Borrow money from someone
- Sell old, but usable goods to the thrift stores and online portals
- Reduce your needs and save money! You may need to live as lavishly as you do
Saving money is by far the most suitable option. If Warren Buffet can live frugally during his early investment years, why can’t you?
Businesses that Do Not Require Money
Many businesses that do not require any kind of investment to begin with are:
If you are capable enough of providing any kind of services like writing, career counseling, bookkeeping, logo designing and giving online tuitions, then you can begin with zero investment. Aside online businesses, you can also offer pet-sitting, pet grooming, babysitting and pick-and-drop services without investing money.
Partner with a business to sell its products or services, without purchasing them as a vendor. The merchandiser will pay you a commission based on the number of services or products sold. This type of no-investment business is suitable if you have a huge social circle.
It is never too late to step closer towards your dream. Nothing is impossible if you have a dream and determination to achieve it.