How can i start a small business without money? Is it possible to start a new business without using my own money? Well, i advice you read on as i explain the exact steps on how to start a business with no money.
One of the major business challenge entrepreneurs face is “raising capital to pursue a business opportunity or take their business idea to the market place.” In fact, inability to access capital is the major reason why some of the world’s most brilliant ideas die without seeing the light of day.
I have written a lot of articles challenging today’s entrepreneurs to think big and start their own businesses. Yet, I still receive questions from young entrepreneurs who haven’t grasped the possibility of starting a business without money. Some of such questions are: how do I start a business when I have no money? Can one become a millionaire or even become a billionaire starting from nothing?
- How to Think like a Billionaire
- The Magic of Thinking Big and why you should Set Big Goals
- How to Become an Entrepreneur
- How to Awaken Your Entrepreneurial Spirit
Well, if any of the questions above apply to you; then read on because I am going to explain in details how to start a business with no money. But before I proceed, I want to clearly state that your perception is going to be a determining factor; whether you will succeed with the tips I am about to provide or not.
Now if you feel that starting a business without money is an impossibility, I will suggest you read the following articles “How to Become a Billionaire” and “How to Become a Millionaire fast” and How to make a million dollars fast; they will help open your mind and expand your reality.
How to Start a Business with no Money
As I get down to the real business of the day, I want to assume that you have no money to start a business of your own. So I will practically be showing you how to start a business without your own money; while using other people’s money and resources. But if you will rather not go through the entrepreneurial process of building a business, you can opt to sell your business ideas to companies and investors. You can learn how to sell your ideas here.
How to Start a Small Business with No Money
1. Develop a good business idea
The first step to starting a business without money is to develop a good business idea. Your proposed business idea must satisfy a need or solve a problem. Your idea must be good enough to arouse the interest of anyone who hears a pitch of it and above all, it must have strong profit potentials.
- Mobile business ideas
- Recycling Business ideas
- Dog business ideas
- Computer business ideas
- Travel business ideas
- Small Manufacturing business ideas
- 14 Education business ideas and opportunities to start
- Entertainment Business ideas
- Real Estate business ideas
- Web based business ideas
- 5 Start-up I.T business ideas
- 10 Technology business ideas
2. Have a good business plan
Even though you have no money to start a business, write a business plan. It might sound crazy but you are only preparing yourself to take advantage of any opportunity that comes your way. Also, writing a business plan will help you see the possibilities of the business and prove to investors that you are a serious entrepreneur that knows his/her onions.
3. What do you bring to the table?
Okay, I know you are reading this now because you lack the capital to finance your business idea but I will bet that you have something of value inside of you. What business skills do you bring to the table since you don’t have money? Okay, maybe you are incompetent when it comes to running a business because this happens to be your first business. What technical skills do you have, as related to the business you have at hand? This are questions most investors will want an answer to.
- Why you must Develop your Sales Skills and Learn How to Sell
- What is the Most Important Business Skill for an Entrepreneur
- How to Develop your Critical or Strategic Thinking Skills
Take for instance you developed a good business idea with respect to the tech industry but you don’t have the money to pursue the opportunity, you can come to the table with your technical skills. Mark Zuckerberg did the same thing. Aside technical skills, you can also come to the table with your experience from a respected field. Skills such as sales skill, accounting skill, business management skill can also be brought to the table because they are valuable to business growth.
4. Find a business partner with cash
This is self explanatory. If you don’t have the cash to start a business, then find a partner who do. The proposed partner may be an active or sleeping partner; what is most important to you is the cash.
5. Start a service based business
You can also start a service based business since it requires little or no startup capital. But you will definitely have to invest time and sweat equity to get things going. A little bit of creativity, marketing and sales skills will also be needed to give your business a head start.
6. Start a home based business
When I hear people giving lame excuses about their inability to start a business due to lack of capital, I boil inside of me. I have seen people start businesses right from their home and grow from there. Julie Aigner Clark, Bill Gates, Larry Page all started from either their home or dormitory.
I have seen people borrow $50 or less from family or friends and launch themselves into tremendous wealth through network marketing. I have seen young internet enthusiasts start a business from a friend’s computer or a public connection (cyber cafe). So I don’t think you have any excuse for not starting a business; even if you have no money.
7. Bootstrap your way to success
Lastly, you can bootstrap your startup by operating on a lean budget. Bootstrap financing is an alternative for those who are finding it difficult to raise funds for their business. Bootstrapping financing is simply the art of running a business on internally generated funds which are often limited. It involves the tactical deployment of resources while giving little room for waste. Effectiveness and efficiency are two watchwords in the game of bootstrapping.
Seven Additional tips on how to start a small business with no money
- 100 Small Business Financing Option without going to the bank
- Obtain a bank loan – Here’s how to borrow a million dollars fast
- Apply for a government grant
- Raise money from crowd sourcing websites
- Source money from Family and friends – How to Raise Startup Seed Capital from Family and Friends
- Try raising capital from investors – VC Funding: How to Raise Capital from Venture Capitalists
- Take your idea to institutions that support entrepreneurship (NGOs)
- Participate in entrepreneurship competitions
As a final note, I want you to know that there will never be a situation where you will be provided with excessive capital to start a business. All lights will never go green and all the stars will never line up for you. There is no perfect time to start a business.
Once you have identified an opportunity, you just have to learn to run with what you’ve got. Don’t sit on your ideas simply because you have no money; start with what you have. Even if all you have is an idea and your enthusiasm; start with it. Where there is a will, there will surely be a way.