However, although all entrepreneurs in their growth process invested years of hard work and suffered obstacles, this will always happen, whether you start your project with a lot of money or not. So, is it an impediment to starting a business if you don’t have enough capital?
Today we will tell you what the answer to this question is and why. Therefore, if you think that being an entrepreneur is your way, but you don’t have money, keep reading!
How to start a business with no money
Everything starts with an idea. On the one hand, you have to be skillful. For example, if you have been working in a well-defined functional area for 10 or 15 years, you already know a lot. Make a list of all your knowledge without worrying about how much they are worth in the market right now.
The second thing you should do is identify what are the things you like the most. Review all the passions you may have: your hobbies, jobs, dreams, and what makes you feel good.
So what to do with all this? The idea is to mix passion, skills, and the ability to sell. For this, we need to design an action plan that takes into account that this will be a long-term process that cannot happen overnight. Discover now what options you have to achieve your dream.
I want to start a business but I have no money, what do I do?
Undoubtedly, one of the most common questions is how to start a business with no money. The good news is that there are several alternatives and here we will explain what each one is about.
1. Open a business that does not need investment
Who said that to start every business you need capital? There are many businesses that you can create without investment, for example, teaching personalized classes, repairing toys, and being a virtual assistant, among others. This is a solution that could work very well if you don’t know what to do yet, but it’s still worth it.
On the contrary, if you already have a defined business idea, calculate the investment you need and if you don’t have enough capital, read on for other tips.
2. Choose a simplified version of your business
Many entrepreneurs first run their business based on what they think they need, then figure out how much money they need to get going. In theory, this is not a bad idea, but in practice, it has some major drawbacks. Economic restrictions are not taken into account.
Of course, if you have unlimited resources, you can start your business in conditions that seem optimal. Open your business in the busiest streets of the city, with the largest possible space, use the best materials for remodeling, hire a high-quality staff, spend a lot of money on advertising, etc.
And of course, I know you think you’ve made some reasonable assumptions that you’ve optimized your investment and your costs. But if you don’t have the money yet, why not opt to further simplify your approach? In other words: maybe you can start small, for example, located in a cheaper area, start from a simple establishment, do the work yourself or start with the essential staff.
It may not even be necessary to open a store. Some companies have tested the concept by selling directly to friends and acquaintances, either in pop-up stores or at gatherings. On the other hand, an online sale may be the ideal option.
Focus on the things that matter most to you. Look for cheaper alternatives to test your concept. When you make your first sale, you can spend money to invest. And if you already have traction (meaning your company has achieved its goals), it’s much easier to convince investors and banks.
3. Start from home
Any business that you can grow from home requires very little capital. So if you think, “I want to start a business but I don’t have the money”, consider and study the opportunity to start a business from home. It is also one of the best options to combine work and family life.
What type of business do you want to start? Who is your client? How will you help him? When you become a boss or an employee of a company, you must have a clear definition of how you work. Some activities can be done individually without problems, while others need help. Before starting your home business, review and set goals so you don’t lose sight of your original plans.
4. Save
If you want to start a business but don’t have the money, wait a little longer and continue with your current job. Since we assume what you are thinking right now… no, that is not a reason to postpone a project indefinitely.
What happens is this: if you already know the business you are trying to start and how much it will cost you to start, you have a very clear goal in mind. You can calculate your monthly savings and estimate how long it will take you to obtain the minimum capital to start a business.
With all the information, you can start your business with more momentum knowing that you are taking the necessary steps to complete your project. Also, if you’re thinking about entering an industry you’re new to, you can still find work related to that business. In this way, you can not only save on investment but also achieve the training objectives of the project.
5. Get financing for your project
In short, if it were possible for all businesses to be set up without money, or with savings from work, banks and investors would have been out of work long ago. You may want to start your business now, therefore, it is necessary to obtain financing, but do not worry because you will have many ways to get the money you are looking for:
- Loans guaranteed by public entities
- Classic bank loans
- traditional investors
- Venture Capital Companies
- Association with relatives.
6. Generate money and do not spend them
The traditional way of doing business is to invest, produce, sell, and ultimately get paid. All of this is done with seed capital and often financing; since there is an important period between the moment in which you spend your money and the moment in which the sale is made.
But what if you abandon the traditional model and start a profitable business from scratch? The best and latest example of this type of model is a subscription system. In these formats, customers pay a recurring amount (monthly, quarterly, or annually). Bills in advance and there can also be a significant difference between your income and the costs that your business generates.
7. Use a coworking
If you want to save money, but working from home isn’t a viable option, you might consider sharing your workspace with multiple professionals. In recent years many players have appeared in the coworking market.
The advantage of these sites is that they offer a lot of flexibility. You can choose to go only one or more days a month, in the morning, in the afternoon or all day. And it’s much cheaper than renting an office for yourself. You can also enjoy the benefits of meeting people and participating in the startup ecosystem.
8. Undertake in the digital world
Starting an online business doesn’t cost much money, but it takes time. If you want to do it at the lowest cost, you will not get immediate results, so we emphasize this point: if you want profitable results, you will have to pay for some solutions like Google Adwords.
Although we also have to admit that it is not that expensive anyway. Digital business is very competitive. However, it represents a small investment, can be done from anywhere, and can be highly profitable.
This is an important key. Today, social networks are one of the most instant information technologies. Promoting your business online will make it visible and, most importantly, it will promote it all over the world.
9. Work as a freelancer
If you are immersed in the digital world, chances are you have heard of freelancers, who provide specific services to companies that are primarily content providers.
If you are good at writing, translating, designing, photography, video editing, and even programming (remember to pick one niche, not all at once), start a business to become a freelancer. Usually, all you need is a computer and a good internet connection.
To be successful, all work must be done on time and in good order, so you must be very organized in time. One of the best ways to get started is to create your portfolio and sign up with independent banks like Freelancer.com and Workana.
10. Seek to associate with people who can capitalize on the project
It’s hard to start alone, so it’s a good idea to consider including people in your project. But when it comes to money and responsibilities, you have to be very careful because you need to know who to trust.
Confidence is a great indicator of who to associate with, but it’s also important to consider the skills your escort needs. For example, if you’re good at crafting but don’t sell, you can team up with friends who can sell anything. The idea is that your partner reinforces your weaknesses.
To keep growing your business, you need to document responsibilities and rights so everyone knows what to do.
With or without involvement in a project, gaining the support of family and friends is important, especially for an early-stage entrepreneurial vision. Also, they will always be one of your greatest spiritual supports on your journey on how to start a cashless business.
Final words
Now that you know how to get started with no money, take action and find a way to get started as soon as you can. With these tips that we share with you, you will have the inspiration and the tools to start your own business. Ahead!
To start a business without money you have to work with passion and a lot of discipline. More money will come if you use the right strategies!
