How to Start a Business with No Money
“The cheapest route to a new opportunity is conversation.”― Mario L Castellanos
Credits: Flickr/William Ross
If you have an Entrepreneurial zeal and want to feel the thrill of owning your own successful business then let nothing stop you. Go for it! Creating and sustaining your own business is not just for money. It is a much bigger dream and passion – it is a way of life and fulfillment of life.
This article is made for all those existing entrepreneurs as well as wannabe entrepreneurs who want to seriously know ‘How to Start a Business (almost) without Money’.
As an entrepreneur, I had experience in the last 15 years, started a few business lines without money or very little money. Also, I had a few good friends who had started from scratch and taken their business successfully to great heights. Therefore, I am proud to share a lot of personal experience and the summary of valuable research in this article. I’ll be too happy if the tips and information shared in this article can help at least 10 budding entrepreneurs to start a business without money.
Is it really possible to start a business without money?
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If anyone has access to large funding or sitting on the pile of cash or can get business loans, it’s quite possible to build a successful business. However, the style of starting and building up business we are talking of isn’t an easy one, but it’s one that many of history’s greatest entrepreneurs have followed. It requires smart working, clever planning perseverance, and dedication to get the business idea going from the ground up. But if you are passionate and prepared to work hard you have the once-in-a-lifetime chance of building a successful business you can proudly call your own.
Below I give Entrepreneur Ideas for start your business with no money
Entrepreneur Ideas with no Money
Getting started into the businesses
“Business is a money game with few rules and a lot of risks!!!”- Bill Gates
Credits: Flickr/Simon Cunningham
Sure you need to do some cash and probably you have to explore the avenues such as Venture Capital Funding, Small Business Loans from Banks, Government Schemes for Start-up loans or a loan from your relatives and friends and you have not met with much success.
But if your project idea is not very much capital intensive then funding is not always necessary. The good news is that by following a few basic tips, starting a business with almost no money is good to possible.
Here’s how to start a business with no money:
1. Write down your business plan and design the budget around your resources:
“A journey of a thousand miles must begin with a single step. –Lao Tzu”
Credits:Flickr/Dan business plan store
How to Start a Business with No Money. You must know that what is the business plan and revenue model. In simple words, “How do you plan to make money?”
If you are not clear, then you should first answer this question and then only you can take steps to start your own business.
The purpose of any business – big, small or home based business, is to make money. You have to make a detailed plan where you have looked at every aspect – from buying the raw material for selling; from working hours to became. For instance, try to answer these fundamental questions (and by no means exhaustive):
a.) What is the product or service you are going to deal in?
b.) How much will it cost you to manufacture or procure your product or provide service?c.) What will be the price for your product or service?
d.) How will you increase the volume of your business?
e.) In what ways, you plan to be better and more competitive than your competitors?
f.) What will be your return or refund or replacement policy, in a case of non-satisfaction?
g.) What kind of people will you need to hire? Can the work be outsourced?
h.) What kind of equipment you need to have?
Refer the relevant Article: How to Earn More Money in Business
2. Feel the Pulse of the Market
“An investment in knowledge pays the best interest.” –Benjamin Franklin
Getting into a new business is a big and serious commitment of time, money and skills – more by you than anyone else. Is your idea is right and at the right place? Is your price competitive? Can you regularly and over a long period of time provide this product or service at a better quality or for a lower price?
These calls for the study of the markets are including the competitor analysis. Who are our competitors? What do they charge for the product or service you’re offering? What is your USP against their offerings? Research the market segment and the customer profile you’re attempting to address, as well as businesses that have or haven’t found success in this market.
If you had found that your business model is workable on a sustainable basis, “congratulations – you may be on to something!”
3. Study the Consumer Behavior and Consumer Preferences
“You can have brilliant ideas, but if you cannot get them across, your ideas will not get you anywhere”– Lee Iaccoca.
This tip is almost an extension of the previous tip but it is a complete research on its own and is worth the exercise. You may have a great product but it is either before time or there is no buyer for it. For example, about a decade ago, a Soft Drinks giant introduced package water in the bottle and people laughed at the concept and there were few takers initially. But probably the timing was just right, the quality of potable water available at public places kept deteriorating and people were become increasingly health conscious. Today the company can hardly cope with the demand.
Sell a product or service which people need rather than should have, and which they feel comfortable buying without having to consult anyone else first. Similarly, the concept of pre – cut and frozen vegetables which are ready to cook is great in metros where both the partners work but not in semi-urban and rural areas where there is no dearth of time as well as the supply of fresh vegetables.
On the positive side, you may get many specific ideas in the process which can help you make your business plan better and improve the profitability also.
4. Do not Quit Your Job Yet
“Sometimes good things fall apart so better things can fall together.”
If you have carefully and diligently worked on the first three tips, then you must be quite ready to take the plunge and start your own business. But wait, it is highly recommended that you want to keep secure your current job.
There are so many uncertainties in the business and the unexpected events – especially for the inexperienced new entrepreneur they can be quite difficult challenges. So if you have an assured and a regular source of income, you save yourself from the tension of not knowing how you’ll pay your unexpected liability or mortgage or any unplanned debt.
Of course, this means not working just hard but work harder. But it is a practical strategy and your working extra hard will not hurt you – physically or mentally. Though in real life this process is very difficult to implement but better safer than sorry. If you have a family to take care of, you can’t jeopardize your family’s needs by giving up your basic source of income to pursue a personal dream.
When your new business begins to pick up steam, you can gradually make the transition from a full-time employee at your old job (or at some other place) to a consultant or part-time worker. Eventually, you can be at your own business full-time.
Though it’s harder to do work – life balance with your side business and with your day job but it’s much safer. Another important tip would be to avoid signing an employment contract with a clause restricting your ability to pursue other sources of income or business in the same line. If you don’t understand the legal terminology, better consult a legal expert.
5. Build Your Business Around Your Proven Skills
“Nothing diminishes anxiety faster than action.”-Walter Anderson
Build Your Business Around Your Proven Skills While there is nothing to stop you to start a business in any domain you fancy but to keep the cost of start up lowest possible, it is highly recommended that you chose to start your business around what you know best. Besides the cost factor, the other reasons are that you do not have to rely on external consultants or skilled people.
Instead of venturing off into uncharted territory, your business should be built around your own personal expertise. Also having that mastery in your field is sometimes all that is needed to make the plunge into entrepreneurship a successful attempt.
6. Sell your services.
“Your most unhappy customers are your greatest source of learning.”
Selling your services is one of the best ways to start a business with little to no start-up capital. As compared to a physical product, there is no physical inventory, no storage cost, no payment to the vendor and no fear of pilferage or wastage. There are a number of services you can offer, depending on your background and interests on one side and the target consumer segment on the other.
For example, if you are good at certain academic subjects such as Mathematics or Physics, you can begin as a home tutor as well as an online tutor and then can progress to have your own coaching center, where you can employ a couple of other teachers thus multiplying your income. Other examples can be, Tech Support, Website Making, SEO Service, Market Research, Content Writing etc.
Besides selling in your local area, you can use specialized sites on the internet to sell your services online to a wider client base.
7. Resell Products
“Anything can be done, as long as you truly believe it.” -Ashley Qualls
This is another interesting option to keep your business entry cost to the minimum If you don’t want to enter services business.
Many people have become very successful just by reselling products that have already been made. This can be done through a variety of ways or channels. For example, you may have the love for cars are good at making a deal for pre-owned cars, then you may earn the good income from buying and selling cars or similarly niche products such as herbs, antique items, used furniture. Either you can sell them at flea markets and garage sales or resell them online.
8. Make something
“There’s a lot of pressure to look like the last company that was successful.”
– Ben Silbermann.
Yes, making something does make you spend initially on the cost of supplies, but it is worth the investment and risk if your products can be sold for many times over their actual cost. What you decide to make is up to you, but there are several places you can sell your handmade options online such as eBay or Face book Store or your own website which is e-commerce enabled.
Items like Lunch or Dinner Packs, Cakes, Hand Made Accessories with customization listing options make it a great choice for customers and a viable selling.
As a business owner, you should strive to sell your products on multiple platforms to get the most exposure possible. It is important, however, to make sure your inventory stays updated on all sites you have a storefront on.
9. Barter to get what you need
“If you do the things that are easier first, then you can actually make a lot of progress.”
– Mark Zuckerberg.
It is a hard core fact that you do need some equipment/hardware / place to start a business. Even if you are the good content writer or a good singer and you want to do online freelance writing business on Elance or compose jingles at Fiverr, you may require the good computer, some music instruments etc. besides Internet connection. You may try to trade it in for something you don’t need or get something in return for what you don’t need.
For instance, if you find yourself in need of a used laptop, try to sell your old bicycle or boxing gloves, which are lying unused. You may write website contents or social media posts for a friend who is in website building business in exchange for his music keyboard or getting a website made – without paying him.
Extending this further, take a look around and see what resources are already at disposal. In the beginning, work from home or share the office with a friend and in return offer your services. For meetings with client or fee wifi go to a local cafe or library which offers free wifi. In case you have a car or bike, you could offer a local delivery service.
If you intend to offer cooked or baked items, then use your home kitchen, you could start making cakes or providing catering for parties.
10. Utilize low-cost services
“It’s not about how many years of experience you have. It’s about the quality of your years of experience.” -Jacob Cass.
Agreed there are certain services you need to pay for. However, there are ways to get these services at the minimal price and of international quality. You can use sites such as Fiverr or Skill pages to design your logo, visiting cards, marketing campaigns, videos, write ups etc. at very competitive prices. You can follow the best low-cost business ideas after you can sort by reviews and look at past examples to find a designer or other service provider that matches your need and style.
To Sum Up
“Success comes down to hard work plus passion, over time. If you work really,
really hard over a long period of time, it will pay off.”
– Stanley Tang.
Starting a business requires creativity and a passion for what you are doing. You have to have a solid faith in your creative business idea and the resources will get attracted to you. Once you find yourself doing something you enjoy, you will be more likely to find ways to make it all come together.