How Can I Start My Own Business With No Money?
With the rise of digital tools, people who want to start their own businesses have more ways to get money than ever before. It is possible to start a business with no money or so little that you won’t even notice.
If you’re willing to work hard, think outside the box, and be resourceful, you can get your business up and running in no time.
Here are some ideas for starting a business when you don’t have any money.
Examine Your Business Idea
If you want to start a business on the cheap, you probably plan to put money into it at some point, even if you plan to put the money back into the business.
“Before you put money into your business, make sure you test your idea with people you trust,” says Fahim Sheikh, owner of SaaS company Trellis. “Sometimes we think we have a great idea, but when we try to explain it or sell it to someone else, we realize it might not be so great.”
Even though the startup costs are low, it’s important to make sure that your idea has legs that will make it worth your time and, eventually, your money.
Use the Free Stuff Out There
There are many expensive ways to learn about business, but there are even more low-cost and free ways to learn almost everything you need to know.
Start by searching the Internet and going to your local library to find good business advice that is free. If you work with a volunteer mentor from SCORE.org, a nonprofit partner of the Small Business Administration, you can get free business advice that is more tailored to your needs.
Ask your mentor to help you choose a business model that can grow and scale affordably by using digital platforms. You can avoid spending a lot of money on fancy things you don’t need at first by using online platforms. For example, you can use WordPress to make a free template website instead of paying a designer to build your own website from scratch.
Network With Communities of Support
You don’t have to go it alone when you start your own business. Joining in-person and online groups of people who share your interests can be a huge help in moving forward.
Eliza Nimmich, cofounder and COO of Tutor The People, says that you can meet potential investors at events and trade shows. “Through social networking sites, you can even join online groups where you can get help and advice to make your business a reality.”
It doesn’t cost anything to use the knowledge, advice, and even money that other people offer, but it’s important to have a lot of goodwill and friendship in the bank.
Live on Personal Savings
If you want to work on your business full time and quit your day job, you’ll need a way to make money. At first, you’ll want to put most of the money back into running and growing the business.
“You take your little bit of money and wear all the hats,” says business advisor and operations director at Oxford Pierpont, Bob Hunter. “You put any money that comes in back into the business. This makes the money you get each time grow.”
At some point, your business will make enough money to support you, but until then, it’s a good idea to save money for yourself. Just keep that money separate from the money you use for your business.
Look for Other Ways to Get Money.
If you don’t want to use your own money, or if your business has grown to the point where a cash infusion is worth it, you could look for outside funding. There may be traditional business loans available, but you can also look for a number of other options.
Friends and Family
This is exactly what it sounds like: a way to get money for your business. Uncle John or Cousin Sally: Would you or they like to invest? Family can be kind, but sometimes things can get rough. Move slowly and make sure you have a clear agreement in writing.
Incubators and Accelerators
These programs help businesses with a lot of potential grow by giving them both advice and money. Accelerators help early-stage companies that are already up and running grow. Incubators are for very new companies.
Most of the time, people who take part in these programs have to spend a lot of time and energy on them, and in exchange for the help, they usually have to give up some of their company’s equity.
Grants
Grants for business ideas are hard to come by. Most of the ones that do exist are meant to help people from underprivileged groups, like women business owners and entrepreneurs of color. Look for these grants from the federal government, the state government, and community development corporations.
Crowdfunding
Crowdfunding is when you ask potential customers for money up front in exchange for special treatment in the future, like being the first to get the product or getting something extra.
“Crowdfunding sites like Kickstarter have changed the way entrepreneurs raise money for their new businesses,” says Mat Scott, owner of Termite Survey. “You can get people to put money into your business, whether you want to sell a new software tool or open an organic noodle bar.”
Even though starting a business with no money might seem hard, if you really care about what you’re building, you’ll find a way to make it work. Use the right tools, network a lot, and look for money in different places to make your dream come true.
To start a business, all you need is a little creativity.
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