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I have idea for success a business but no money what can I do? 32 Proven tips to help you start with…

In this century, everyone wants to start a business. People young and old complain that they want to start a business but have no money. If you have a viable business idea don’t let the lack of capital stop you. Did you know that you can start your company today for $0? Don't worry - in this article, we will learn how to start a business with no money.

In this century, everyone wants to start a business. People young and old complain that they want to start a business but have no money. If you have a viable business idea don’t let the lack of capital stop you. Did you know that you can start your company today for $0? Don't worry - in this article, we will learn how to start a business with no money.

You might be asking “What type of business can I start with no money?”

Here are some brands that started with almost nothing:

Whole Foods Market – In 1978 John Mackey and Rene Lawson saved and borrowed money from friends and family to open their first store in Austin, Texas. After getting evicted from their apartment, the two lived in their first store.

Apple, Disney, Google, Harley Davidson, Hewlett-Packard, Lotus Cars, Mattel, Yankee Candle Company all started in garages.

Nike – Founders, Philip Knight and Bill Bowerman started selling training shoes from their car trunk.

Dell – Michael Dell started out as a dishwasher, making a whopping $2.30 per hour. Dell started selling PC out of his college dorm.

Throughout this long article, I will be teaching you how to overcome each business stage without a penny while sharing my personal experience doing it, share some ideas that you can start without much money, particularly of online businesses, and recommend you some tips and considerations you may want to take throughout the process.

What motivated me to write this post was recently receiving a message in the chatbot down in the corner that said: “I want to start a small business but have no money”.

However, this is quite a controversial and difficult topic to talk about. In the end, starting a business can cost from $0 to millions of dollars, as it depends 100% on the industry you want to operate in, the idea you have had, your knowledge and experience in the field, etc.

How to start a business with no money?

1.     Work on Your Business Idea

Coming up with a great business idea is just the beginning of your journey as an entrepreneur. There are many more steps that you need to take before you can get started. Fleshing out your business idea is one of them, and it’s very critical to the success of your venture.

Is your business idea really unique? What value will it generate? Is it something your target audience really wants? Or is it something you think they’d want? Getting answers to these questions is important to determine whether or not your idea works.

2.     You MUST Research!

The first and possibly most important step of starting a business is to research different markets & customers.

You have a brilliant idea that you know will definitely work, but what about your competition? Will it be difficult for a rival to copy your idea and repackage it in a better way? A potential investor will ask you this when you approach them for funding. It’s very important to understand the market you operate in and your competition.

You should first look at the trends and identify challenges that your business may face. The next step is to understand how you are going to address those challenges to stay profitable.

3.     Keep Your Present Job

Being practical is extremely important when you are toying with the idea of starting a business. Starting a business is risky. Starting a business with no money is even riskier. Don’t jeopardize your family’s financial well-being. The longer you keep your job the less pressure you put on yourself. When you start your business you are not ready to walk away from a steady paycheck. It’s true that you’ll have to work harder, But the transition from being an employee to a business owner will be far smoother as you won’t have additional expenses to worry about.Once your business starts to generate revenue, you can start thinking about transitioning out of your job.

4.     Start a Home-Based Business

Whenever you need to start your business either online or offline, you need to begin with a home-based office. By opting this method, you can eliminate a roughly 42% of the established businesses’ overhead costs. Know how your home-based business, you can eliminate or significantly reduced the below-mentioned things all together.

Start Considering Your Vital Savings:

·       First and the foremost you don’t have to pay office lease payments

·       Second you don’t have to deposit any cash to take the franchise or to set up services for the franchise.

·       Third you are saving the fuel costs required for commuting to work

·       Reduction in your child care expenses that you might have to take upon if you are out of the home.

·       According to the significant facts, most of the companies could add more than a Billion to their bottom line profits if they start offering their employees to work from their home. Thus, working from home or having a home-based office is the smartest option for setting up your business with inadequate resources.

5.     Master your mind.

The mind is split into two: the conscious and the subconscious. The subconscious is what really matters, what produces the results, but it cannot tell right from wrong. The conscious on the other hand can, thus the conflict. The conscious mind exists just to act as a gatekeeper for the subconscious. Obviously you don't want the wrong things to make it through. Duality (right-wrong, good-bad, big-small, easy- hard) exists only in the conscious mind. During your "formation years" you got by default a lot of beliefs from the people around you (family, friends, teachers, colleagues, media etc).

6.     Dream big and have a vision.

White down the why behind your goal. This should be meaningful to you. Try with more things until you hit a home run. You need to get inspired by your goal. Your goal should be a mission to serve, to make a difference. Otherwise you are not going to take action. It's just going to be wishful thinking. This is the process that will inspire you to take action. It will come naturally as an idea or an urge to do something towards your goal.

7.     Think creatively.

The industrial revolution created "robotic mindsets" focus mainly on fulfilling pointless and repetitive tasks. A direct effect of that was a generalized creative thought atrophy:

8.     Stick with something you know.

Build on your passions and experiences. Instead of trying to start a business in a niche outside of your comfort zone stick to something you know. Build your business on your skills and knowledge. It is true that you can learn new skills, but it will take time. If you want to start a business quickly, you have to focus on what you can do now not years from now. Always believe in the saying, get the job you love, and you never have to work for a day. So find out the expert in you and start the business.

Also, having that knowledge is sometimes all that is needed to successfully take the plunge into entrepreneurship.

9.     Do all the work yourself.

Get ready to hustle. Hard work is an absolute necessity, but when you are starting a business with little to no capital then you must be prepared to dedicate everything you have into making the business a success. This might mean cold calling, handling customer support, dealing with billing and accounting, and every other working part of your business. Doing everything yourself you will be able to put every dollar back into your business. You will wear many hats and it will require the majority of your time and energy if you are to make it.

10. Avoid unnecessary expenses.

You are going to have plenty of expenses, and there are some that just can’t be avoided. What you can avoid though is overspending. Take something as simple as business cards. You could drop $1,000 on 500 metal business cards that give off the “cool” factor, or you could spend $10 on 500 traditional business cards. Being frugal in the beginning can be the difference between success and a failed business.

11. Don’t get buried in credit card debt.

There is a smart way and a suicidal way to use credit when starting a business. New computers, office furniture, phones and supplies can all quickly add up. Instead of purchasing everything at once and throwing it all on a credit card, use your company’s revenue to finance your expenses. Eliminating the stress and burden of debt will greatly increase the chances of creating a successful business. that burn through millions of dollars only to fizzle out and shut their doors forever.

12. Offer a service.

Some of the best business you can start with no money is a service business. You can start a service business with practically no money. Instead of money what you need is the ability to knock on doors and make sales. Even if you ultimately want a product business, owning a service business can help you get there. Use the service business to finance your dream business.

Here are some great product businesses that started out selling something else:

3M – Started as a mining company. From that, they went on to sell sandpaper, then masking tape, the “Scotch Tape”.

Microsoft – Started out by doing sporadic software development gigs.

37signals – Started out as web designers before they have created products like Basecamp.

13. Create a professional website.

If you’re offering any type of business service, a digital presence will help you get more clients and add to your professionalism. Websites can be setup for with little skill and cost, there are thousands of professional website templates online for free that can help get your business website up within a few hours. It’s essential you use a professional domain name for your business website, such as the name of your business or your own name. If you’re stuck coming up with a domain name, try using a domain name generator to help develop some ideas and register the domain.

14. Make it public.

Starting a business with no money means that you have to work hard to get the word out. Don’t keep your business a secret. Tell as many people as you can. Call your friends. Explain it to your family members. Make it public. Telling people will help you in several ways. For starters, it will give you extra energy. More importantly, it might help you land some of your first customers. People in your network could make valuable introductions.

15. Run a Trial

Want to be sure if your business idea is indeed unique? Run a test and find out. A pilot will give you the confidence you need to take your idea to the next level and mitigate risk. You can start on a small scale by giving away some freebies to a few people in your target audience group to see how they respond.

A small trial can give you some new insights to grow your business and identify challenges that you might have overlooked.

16. Gather Feedback

If you are planning to get into a completely new business, it would really help if you got a second opinion from someone who knows the market and the challenges involved.

A business idea that looks good on paper may not be that attractive when you actually get into it. An expert’s opinion may help you look at things from a different perspective and gain more knowledge that you may lack.

17. Ask for help.

You might be thinking “I want to start my own business with no money, but I don’t know what to do.” Nobody can succeed alone. Especially, if you are starting a business with no money you will need all the help you can get. Reach out to small business owners. Many of them started their business with little or no money.

Asking for help can help you several ways:

·       Some people in your network might be entrepreneurs who could give you some pointers about starting a business with no money.

·       You could find a co-founder. Starting a business with the right co-founder greatly increases your chance for success.

·       A friend, family member, or coworker could teach you skills you don’t have.

·       You might find free office space.

18. Barter.

When you start a business with no money, bartering comes in handy. Barter your own skills for office space, products, equipment, or services you need but can’t afford. Bartering is also a great networking tool.

19. Join a mastermind group.

Joining or starting a mastermind group can help you save a lot of money in the long run. It gives you an opportunity to learn from other entrepreneurs. Instead of paying an expert or a consultant for advice you will interact and learn from other entrepreneurs.

Although many mastermind groups cost money you can start your own for free. Look for people who are at a similar stage in business. If you are starting out, you don’t want to build a mastermind group of business veterans. When you are starting outreach out to people who are also interested in starting a business and those who have been in business for less than two years. With that strategy, you will have enough diversity in the group to make it interesting for everyone.

It helps if you are in the same city, but you can build virtual mastermind groups and meet through Skype or Google Hangout.

Here are some of the greatest benefits of mastermind groups:

·       You give and get support from people with similar goals and ambitions. Being an entrepreneur can be a lonely place. Get the support of others.

·       Learn from those who had some of the same or similar business challenges to yours.

·       You can get different perspectives.

·       When you are part of a mastermind group your network grows exponentially. The group’s network becomes your network.

·       You can ask for help with problems you haven’t faced before.

·       Your fellow members can keep you accountable.

20. Invent something and license it.

If you are an inventor, you could license your patent to a company. In licensing deals you normally get a percentage of sales. The best way to license your invention is to seek out manufacturers. Technically, it is called licensing your patent rights.

You want to start out by developing a list of manufacturers. Look for those that are already making products in your target niche. One or two manufacturers is not enough. Identify at least, 25 potential manufacturers.

You can find manufacturers by looking at product packaging, online research, networking, and visiting trade shows. Libraries have excellent resources to locate manufacturers. Thomasnet, WikiMachine, ManufacturerUSA are possible resources too.

Reach out to manufacturers with a short message about your invention. Provide enough information to trigger interest, but don’t overwhelm people with data. LinkedIn can be an excellent resource to find the appropriate contact person.

Consult with an experienced licensing attorney before you enter negotiations. Ultimately, the licensing agreement will include details about upfront payments, exclusivity clauses, percentages, and infringement issues. You could really do yourself a major disservice by entering into an agreement without professional help.

21. Partner with an entrepreneur.

Many businesses are started by solopreneurs who quickly become overwhelmed. Most entrepreneurs would want you to buy yourself into a business partnership, but there are still ways for you to do this with little or no money.

You could find a business where the owner is about to retire. The owner of the business might want to sell the business, but the reality is that most businesses never sell.

The most common reasons businesses don’t sell are that they are:

·       Priced unrealistically high.

·       In a downward spiral by the time they are listed for sale, and potential buyers look at the business like a falling knife.

·       Relying too much on the business owner. Potential buyers fear that the business will not survive once the current owner leaves.

·       Another option is to find a business where the entrepreneur is either too overwhelmed or simply burned out with the business.

22. Find a co-founder with money.

Many successful businesses are started by two or more founders. With two founders you will also improve your chance of success.

Tell people in your network that you are looking for a co-founder. Team up with someone you trust. It’s a bit like getting married.

You can search for potential cofounders through:

·       Friends, family, and family friends.

·       You classmates from college and high school.

·       Past coworkers.

·       Local startup networking events.

·       Business meetups.

·       Former business partners if you have been in business before.

·       Working in a co-working place.

·       Teaming up with a customer.

23. Focus on cash flow, not profitability

The reality is that you pay bills with cash, so focus on cash flow. If you know you are going to bootstrap, you should start a business with a small up-front capital requirement, short sales cycles, short payment terms, and recurring revenue. It means passing up the big sale that take twelve months to close, deliver, and collect.

24. Get paid fast or upfront.

When you start a business with little or no money, getting paid fast is crucial. Nothing will help your cash flow more than getting paid up front. Late payment, net 30, 60, or 90, slow payment will hurt your business.

You can get paid fast several ways:

·       Ask for at least 50% payment upfront.

·       Offer incentives to pay early.

·       Show up in person, if your clients are local.

·       Send invoices at least once a week.

·       Ask your customers to pay with a credit card or electronic bank transfer.

·       Fire customers who are chronic late payers.

·       Set up automatic payment.

25. Assess Your Capital Needs

You require money to start your business, but how much do you really need? Without a clear idea you run the risk of coming up with an unrealistic valuation of your business, which will put off investors and get your loan application rejected.

So before you start wondering how you should raise money, you should focus on evaluating your funding requirements. How much do you need to get started? How exactly are you going to use the funds?

Another thing that’s important to understand, when doing this analysis of how much does it cost to start a business, are the different types of costs that exist. We will divide them into three categories:

Fixed vs. variable costs: Rent, employee’s wages, and insurances are 3 examples of fixed costs, those that you’ll have to pay even if your business’s doors are closed. Materials, transaction fees, and bonuses are variables costs, those that depend on how many goods and services your business produces every month. As the business grows, fixed costs begin to represent a smaller part of the business’s revenues, while variable costs increase.

One-time vs. ongoing costs: One-time payments can be significant at the beginning as you’ll need to form the business, acquire machinery, prepare the working space. Ongoing costs are those that need to be paid on a regular basis - they generally increase as time goes on.

Essential vs. optional costs: Essential costs are absolutely necessary for the survival, growth, and development of the company. Optional purchases, in contrast, are those made only if there’s a surplus of revenues. They generally involve experiments and risky decisions that may not bring any ROI (return on the investment).

Knowing these kinds of costs will be essential at the moment of doing an estimate of how much will starting your business cost.

The internet has democratized a lot the business world, reducing the costs of starting a business to $0 or almost $0. Someone who can code can easily purchase a domain and hosting for less than $30 and build a site that makes thousands per month.

A great example of this is Alex Tew who, at his 21 years, built a digital billboard that sold 1 pixel for $1. It contained one million pixels and selling them all only took him 4 months, at probably $0 costs.

26. Get a credit line.

Businesses are commonly funded by lines of credit. You might end up using a credit card to help you with your cash flow. The key with credit lines is it is no substitute for revenue. Use credit lines only as a temporary measure, not as an alternative to making enough money to pay your bills.

27. Use crowdfunding.

At a time when 98% of the business plans are rejected by VCs and accredited investors, crowdfunding offers a great alternative for entrepreneurs. Crowdfunding requires a lot of effort and dedication, but is a great option, especially for consumer product businesses. The great thing about crowdfunding is that it gives you access to capital without giving up equity.

Crowdfunding can help your business in several ways:

·       It’s free!

·       Crowdfunding reduces your financial risk.

·       Fast access to capital.

·       It enables you to pre-sell.

·       Crowdfunding is easier than getting VC or angel investment.

·       It gives proof of concept. If you don’t get funded, perhaps your idea isn’t as great as you thought it is.

·       Your crowdfunding campaign can serve a marketing tool.

·       Your investors can help you improve your product.

·       The “crowd” can provide great word of mouth marketing.

·       It can build a loyal following.

·       It’s free PR.

The most popular crowdfunding sites are:

·       Kickstarter

·       Indiegogo

·       RocketHub

·       FundRazr

·       GoGetFunding

28. Explore Crowdfunding Platforms

Crowdfunding platforms such as Kickstarter have changed the way entrepreneurs are raising money to fund their new businesses. Whether you want to sell a new software tool or set up an organic noodle bar, you can get people to invest in your business.

29. Network with People

When you don’t have money to start your business, it’s essential you find the right people who can help. You may attend events and trade shows where you can find potential investors. You may also join various online forums on social networking sites where you can find useful tips and resources to bring your business to life.

Most venture capitalists and investors are quite active on social media, so if you can wow them with your idea you may find a great way to get started on your business dream.

30. Apply for government programs.

Apply to the Small Business Administration (SBA) and other government agencies for help and funding. There are business financing options for women, veterans, and minorities.

Enter business plan competitions.

31. Take advantage of free advertising and marketing.

There are several ways to generate a buzz for your business without breaking the bank. Social media is a great way to gain exposure and interact with potential customers. You can also reach out to local media and offer your expertise.

Make as many local media contacts as you can and be extremely responsive with their requests. This can lead to them to branding you as the local authority, generating plenty of free press for your business.

Here are some of the most common free advertising options:

·       Submit guest blog posts to relevant blogs. You will get a free link back to your own site.

·       Order free business cards from Vistaprint – Most importantly pass them out.

·       Develop strategic partnerships with businesses who serve the same customers you are targeting. It will enable you to cross-promote each other’s business.

·       Set up a free WordPress website.

·       Submit your business to Google Local.

·       List your company in free directories related to your niche.

·       Offer an introductory free consultation or free evaluation.

·       Host an event. Recruit sponsors to cover your costs.

·       Create a Facebook Fan Page.

·       Frequent forums where your customers hang out.

·       Network with others and get free word of mouth marketing.

·       Ask friends, family, and people in your network for referrals.

·       Make connections and promote your business through social networks like Facebook, Twitter, LinkedIn, Pinterest, and the like.

·       Build your email list from day one. Email is still one of the most effective marketing channels.

·       Include your website, Facebook page, and Twitter handle in your email signature.

·       Write an eBook or a report and use it a promotional gift item.

·       Comment on blogs with a link back to your own website.

·       Learn about Search Engine Optimization (SEO) and use it to drive free traffic to your site.

·       Develop an iPhone or Android app for free and include your branding within it.

·       Post an ad on Craigslist.

·       Write articles relevant to your niche and distribute them to article directories.

·       Publish press releases. Prlog offers free press release distribution.

·       Wear your ad. Print your brand, URL, and phone number on your T-shirt, so when you are out in public people will see.

The above list might seem overwhelming at first, but it is doable. Take it one step at a time. Be systematic. Track and measure your results. Rinse and repeat the ones that give you the best results.

32. Avoid get rich quick schemes.

There are countless cases of “get rich quick schemes” both online and offline. They promise you everything you want to hear. Quick and easy money with little or no work. It simply doesn’t exist. You can start a business with no money, but you can’t start one without hard work, strategic thinking, and patience.

Don’t believe stories about overnight success. They are simply myths.

Here are examples of real success stories, and none of them is the overnight kind:

Milton Hershey started 3 unsuccessful candy companies before he started the Hershey Company.

It took Bill Gates 6 years to land his first contract with IBM.

It took Steve Jobs 20 years to become an overnight billionaire.

It took Biz Stone 8 years to come up with the idea for Twitter.

It took Steve Martin and Jim Carrey 10 years of stand-up gigs before making it big.

Nothing will hurt your chances for success more than believing in the – false – idea of overnight success. You are doing yourself a disservice believing it. Most businesses take years of development before they become successful. You can start a business with no money. Expect to spend years to build your business instead of days. Persistence is key.

 

NOTE: This is not gonna be a cake walk but it's possible with Understanding, Confidence and Patience (as it might take 3–5 years to become a well established business)

This was just one way to make you stand apart from the crowd but there are thousands of ways for those who dare to desire.

All the best

If your idea and plan of execution aren’t well thought out from the beginning, no amount of money can turn it into a winner. Have a great idea but very little money? Don’t let that stop you! Yes, there will be ridiculously long days with little to no sleep. Yes, you are going to be stressed. But those that want it bad enough will make it.

Don’t let limited capital prevent you from taking a great idea and running with it. Will it be difficult and will you have some stressful situations? Of course, but that is part of entrepreneurship.

Time is more important and precious than money for investing in starting a business. Time is money my dear. First invest your time in generating a promising and successful business idea.

Always remember the tips mentioned above as they will help you in keeping your business on track.

Related post:

https://jiyoaurjeenedoo.blogspot.com/2020/11/how-i-do-business-myself-without-money.html

 

Ishan Jain

Author & Editor

An opportunity to work is good luck for me. I put my soul into it. Each such opportunity opens the gates for the next one.

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