Do you want to start a business with little or no money down? Or do you have some bucks but do not know exactly how to get started? Do not worry any further. The complete information you need is right here.
Summary| In this insightful article, you will discover the easy and most effective steps to take when starting a business with little or no money. Each step is explained in detail to help even a beginner to get started and make the most out of their business.
Can I start a business with little or no money?
Money is undoubtedly essential when it comes to business. A steady stream of money is vital to the growth of any business. For new businesses, a good amount of startup capital can be a huge difference-maker. When combined with other important inputs such as a solid business plan, good marketing strategies, ingenious thinking, and hard work, the sky is only but the starting point for such business.
However, while many would love the idea of starting up their dream business ventures, they all abandon the idea when faced with the most important question—Where and how to get startup capital. This remains a great puzzle to solve, but those who are ready to take a bold will be glad in the long run.
Starting a business with little or no money down can be very challenging. Sometimes unforeseen circumstances such as poor sales, delayed payments by clients, unexpected expenses, and/or low stock because of suppliers’ refusal to supply goods on credit could cause downtimes in business. Despite the odds, it’s not impossible to start from scratch. Many successful businesses worth billions of dollars today started with little or no capital. Hewlett Packard, Dell, and Harley Davidson are great brands that started small. Yours can also be a success story if only you use the right strategies.
Now that you’ve decided to start a business, let’s look at some helpful ideas to guide you in setting up your business successfully, with little or no money down.
7 Important Steps To Start A Business With Little Or No Money
- Identify a need in your niche
- Start with your skills/passion
- Estimate your startup cost
- Advertise your business offline and online
- Make more research using the internet
- Seek extra funds
- Attract and invite angel investors
1. Identify a need in your niche
First thing first, you must identify a need when starting a new business. For you to make huge money, you need to create utility. Nobody would want to spend money on things they don’t value or need. You would have a hard time convincing them to do so. To thrive, you have to solve a need or, at least, a want.
You can do this by examining your immediate environment. What are the immediate needs of people there? What are they willing to spend on? You could also reach out to other places in your state or region. Thankfully, the internet has made data collection easier. Knowing about peoples’ needs would set you off on the right footing.
2. Start with your skills/passion
Another important thing that can lead to your success in business is starting with what you already know. While anyone can go into any form of business, starting on the talent, skills, passion, interest, or knowledge you have would give you an edge. You can also start in the same business as your day job since you already have some experience.
There are some things you would have to do in the meantime and if you have little or no knowledge in that area, it could cost you a good amount of money. As a newbie, it may not be feasible or advisable to hire an external person(s) to perform certain tasks as it could eat into the funds you are still trying to gather.
3. Estimate your startup cost
You need to estimate the cost of setting up and running your business within a foreseeable time frame. To do this, you may have to calculate the cost of ⁰machineries and equipment (if you intend to go into production) or at least how much it’s going to cost you to develop an online storefront (if you intend selling on the internet). These costs are only temporary estimates and can be changed in the long run as your business grows.
This would paint a clearer financial picture on which you can set off. It may cost more or less than you think but it’s better to have a well-researched estimate on the ground.
4. Advertise your business offline and online
Even though you are starting small, it shouldn’t limit your reach. You have to reach as many people as possible. You may need to tell your family members, friends, and neighbors about your new brand. Also, you can implore them to help you publicize your venture. Word of mouth advertisement remains the best.
However, you have to be careful not to inconvenience them with constant reminders. You shouldn’t also force them to patronize you. Let them come to you when they require your products and/or services. Remember, they need to always have a positive view of your business.
Also, ask them for a review when they patronize you. They are closest to you and hence they would give you feedback in a gentler manner than other customers. They should be your first step to the world.
5. Make more research using the internet
For starters, leveraging on the far reach of the internet should be in your business plan. There are lots of potential customers on social media who are waiting for the right product to come their way. Create social media accounts for your business. It’s advisable to differentiate personal profile from business profile. This gives your business a more professional outlook. Cross-promote on these five major platforms: Facebook, Twitter, Instagram, YouTube, and LinkedIn and engage users who come to make inquiries.
You may also want to create a website. No need to rush it. You can always do it later on but do it immediately if you can. There are lots of cheap domain hosting plans offered by companies like GoDaddy, Namecheap, etc. You can also use content management systems (CMSs) like WordPress, Blogger, and Jumloo to design your website.
6. Seek extra funds
You may need to seek for external funding to kick start your business. There are many ways to get funds. You could seek help from your family and friends. They might crowdfund your venture. They might also opt to loan you some money for a startup once you show them your business plan. Just write an agreement on the amount and date you would repay.
You could also get loans from banks, microfinance institutions, and online lenders. Many of these institutions don’t ask for collateral. They only need a concrete business plan and some personal information to issue funds. You might not want to rule out this option.
Also, seek both local and international grants. As hard as it could be to get grants, they are real and would be very helpful (they are free money actually). Be on the lookout for local and international grants available for your country, check out their requirements, and tweak your business plan to meet them. You never can tell, you might be the next winner.
7. Attract and invite angel investors
Angel investors are people with money who buy into businesses at the budding stage. All most angel investors need to scale up their business is a concrete plan and long-term business goals. In return, they get to own a share of the business. You might not like the idea at first, but when you consider how far their funds can take your business, you would understand why they are worth keeping.
Anyone even close relatives can be an angel investor. You can also publicize the idea or go out to influential individuals in your locality. Most would give you a listening ear since most are entrepreneurs on a perpetual lookout for investment opportunities.
The Bottom Line
At this point, you may be nervous as all these sound like a herculean task. Don’t worry, it’s a normal feeling for people who intend to take their first steps in business. You have to be optimistic always as big things often start small. You would learn lots of things on the way which would add to your growth.
With these tips, you can kick start your business today even without a dime. There is no better time to start your business than now. Always remember that entrepreneurship is the key to financial freedom. Get up and start working for yourself.