5 Tips for Starting a Business with No Money
While most people would love to start their own business, a lack of startup capital prevents them from doing it. But that’s a shame because with a little hard work and dedication it is possible to start a business with no money.
But keep this in mind, starting a business is hard, and anyone who tells you it isn’t, is wrong. But if you have the drive, dedication, and a good idea, you can start a business without money. (Please keep in mind that although the expenses will be minimal, you will have to invest a tiny amount of money in any new business.) Here are 5 tips that will get you started in the right direction.
1. Don’t Quit Your Day Job Just Yet
Because you’ll be starting your business without any money, you should hang onto your day job to help pay your living expenses. In addition, having the guaranteed income will ensure that you have access to some capital if you need it. For example, if you plan to start an online business with no money, how will you pay for your website hosting? Or if you plan to open a cottage food business, how will purchase your ingredients or packaging?
2. Analyze Your Business Idea
Whatever you do, please don’t skip this step. Studies show up that one out of every two startups close within the first two years, and you should do everything you can do avoid becoming a statistic. You will need to analyze your business idea, create a business plan—even a one-page plan—and test your market. For a thorough explanation of each of these steps, read The 30-Day Work from Home Challenge: Do You Have What it Takes to Be Your Own Boss?
3. Start Generating Money with Services
As I said above, you’re going to need some money to start your own business, and if you don’t want to take out a loan to get it, you’ll need to generate some on your own. The best way to do this is by soft-launching your business as a service only business to start earning. And whatever you earn from the soft-launch, you can use toward your hard launch.
The reason for doing this is that a hard launch will require you to provide products, shipping, packaging, advertising, and a lot of other stuff that requires money. But when you want to start a business with no money, you have to think outside of the box.
A soft launch offering only services can be done for free. After evaluating your business idea (the step listed above), you will have a complete vision about your business so it shouldn’t be difficult for you to come up with a service related business that you can launch. And who knows? It may so successful that you pivot and decide to grow that aspect of your business instead.
4. Become a Entrepreneurial Superhero
Even if you have loads of cash to start your own business, you will have to work like crazy to get it off the ground, but when starting a business with no money, you will have to work even harder—and get creative. For example, if you need to hire employees to get your business off the ground, design a package that pays only on commission. If you need advertising for your business, try bartering your services for ad space. If you need shipping containers, look in the recycled or used marketplace. Knock on doors yourself to sell your product, design your own flyers and business cards, and become an internet marketing guru by watching YouTube videos and reading articles by experts. In other words, you will have to learn to do everything other people pay to have done.
5. If All Else Fails—Think about These Small Business Loan Options
Sometimes it’s just not possible to start a business with no money. In those instances, you do have a few options to get capital for your small business, even if you want to start a business with no credit. Here are what I consider the two best choices for startup funding.
- · Kabbage. This alternative lender makes it easy to get funding for a small business. They can approve a loan in just ten minutes and have options such a microloans to choose from. In my opinion, it’s one of the best small business funding lenders out there.
- · Crowdfunding. If you have the patience to set up a platform, crowdfunding may help you get the money you need to start a business. You should study some of the successful campaigns on places like Kickstarter.com to find out how to create a successful one of your own. Also, read the Creator Handbook put out by them that will teach you how to put together a successful campaign.
Starting a business with no money is possible as long as you’re willing to work harder and longer to make it a success. And if you need a little inspiration, know that you’re in good company. Mail Chimp, Shutterstock, and Harley Davidson were all started on a dream and no money!