Starting a Business with no Money
The most probably way to achieve freedom in your work life is by starting a business. Yes, businesses also come with their fair share of risks, but unlike regular jobs, can provide perks such as being able to pay yourself as much as you want, create job opportunities, take instructions from no one, drive nice cars, etc. The benefits are unlimited; the only problem is that everyone has a million excuses to avoid taking the leap of faith. “I don’t have the capital”, “What if something goes wrong?”, “I don’t have the experience” ,”What if it fails?”.
The best way to overcome the fear of starting a business is by focusing on the end results rather than the fearful action itself. Besides, the worst that could happen if it were to fail is that you would have to go find a job. Nobody dies or anything. Here are 5 things that you can do to help get started with little or no money.
How to Start a Business Today with No Capital
Bootstrapping is the idea of funding a business’ early growth using the resources which are readily available at hand. Such resources may include the combined expertise of each team member, using personal savings as capital, working from home instead of an office, etc. Bootstrapping is very ideal because it prevents startups from incurring avoidable costs.
Additionally, the processes of acquiring capital through financial institutions are never a walk in the park. A startup that boostrapped in its early days will not have many liabilities such as long term debts or annoying investors who dictate how the company is run.
Bootstrapping often calls for sacrifices to be made until the business can afford to stand on its own feet, even if it means selling personal belongings in order to raise money. It is all about doing whatever it takes to get the venture up and running.
- Completely avoid unnecessary expenses
It is a natural thing for a business to incur costs. As a matter of fact, a company with growing expenses could show that it is developing in one way or another. Now, while some business expenses cannot be avoided, there are others which add no meaningful value. Such expenses should either be eliminated or replaced with cheaper alternatives.
Working from home (if possible) is much cheaper than renting an office. Sending emails is cheaper than sending post mails. Calling on Whatsapp or Skype is cheaper than the traditional phone calls. Regular business cards are cheaper than the fancy ones. You get the gist.
As discussed in the article ‘How to become a Millionaire by Adapting 5 Principles’, many entrepreneurs often neglect the fact that controlling expenses is fundamental part of successfully growing a business. If you can reduce on costs equating to $20 a day, then you would be saving a whopping $7,300 at the end of the year. Even a cost of just $1 can compound and become a lot if you look at it in the long-term.
- Take advantage of free advertising and marketing
There are numerous ways to generate a buzz for a business inexpensively. Social media is by far the most convenient avenue. You can build a highly targeted following on platforms such as Facebook and Twitter, interact with the users, get their feedback, market to them, etc. When starting a business with no money, you must always be on the lookout for free or inexpensive deals.
In addition to social media, you can also reach out to local bloggers and publishers, and request to be featured on their platforms. Being featured on an authority publication can give a business invaluable credibility and social proof. Bloggers are always on the lookout for topics to cover, and might be happy to write about you if the business falls within their line of interest. It is just a matter of reaching out.
- Utilize low-cost services providers
The ultimate objective when starting a business with no money should be to avoid all unnecessary costs. There are other costs, however, which simply cannot be avoided. For example, an online business cannot avoid paying for website hosting.
Platforms like FiveSok and Fiverr enable companies to outsource some work to experts who usually charge about $5 for their services. Such platforms essentially accumulate providers of small scale services such as logo designing, business consultation, web development, social media management, SEO, accounting, etc. While FiveSok and Fiverr are the most inexpensive outsourcing sites, you can also find experts for larger scale jobs on platforms such as Freelancer and Upwork.
- Prepare for a fight
Starting a business with little or no money is a challenge that can be overcome by building momentum as quickly as possible. You have to be relentless in the pursuit of customers and cash flow; I mean doing whatever it takes – even if you have to sell roadside. Read the story of Airbnb to see how they grew to millions of users by applying a clever yet unconventional tactic.
Entrepreneurship is ultimately just a game of patience and perseverance; the most important thing is that you do not stop fighting until things go your way. Almost all the successful entrepreneurs from all around the world achieved their success as a result of years grinding through challenges and never accepting defeat. Do not ever let a lack of capital to interfere with the pursuit of your dreams.