How To Start A Business Without Money/Capital
Why do you want to start a business?
Some people wish to own a business, because it provides them some benefits. Although it has many benefits, some major advantages are flexibility, freedom, personal satisfaction and unlimited income potential. But they can’t start the business due to the lack of enough money/funding. Therefore, we provide you some business ideas that you can start right now with money or capital. But you may need some very minimal basic things
Side Hustle Ideas to Make Money
All types of businesses need some financial investment. But you can start a business although you don’t have any money at the moment or you have very little amount of money available in your account. You should understand your skills and knowledge that you use to make money by setting up a side hustle. You should come out of your comfort zone and get ready to overcome hurdles or obstacles on your business journey.
Keep Your Day Job
Don’t quit your job at the start of your business. At the beginning of your business, you might have little or no income, but you need money to maintain you or your family living expenses. Therefore, keep your job and focus your time on your side business in evening, and weekend or at free time whenever you get. Otherwise, you will be involved in debt for maintaining your living expense. Once your business starts to generate income, save this money. Whenever your business starts in full swing and generates enough income to support you and your family living expenses, you can quit your job and focus your full-time on your business.
How to Start Business Ideas Without Money
There are some business ideas you can start without money. At first you should focus on your skills, knowledge and experiences that you can use to set up and run a business. The most important thing you should do is to figure out a business idea or business niche. If you want to start a business without money, consider a service industry business. You can do the following things before you start a business:
- Do market research,
- Write a business plan,
- Run a business trial,
- Scale up your business,
- Use free resources to scale up your business,
- Design a savings plan and
- Find an alternative funding.
Prepare a Business Plan
Before you start a business, you should write a business plan. A business plan is a road map that will guide you to run and grow your business. Business plan should include pros and cons of this business, hardship and challenges you will face on the way to business journey. Make a plan how you will encounter the challenges and grow your business. You may also attract investors and employees as well as secure financing. Your business plan should focus on why your offerings or selling points stand out. Your business plan should include the following parts:
Company overview
- Write about your business name, mission, vision, and goals.
- What you want to do or sell to customers.
- Why you want to this business.
- Make all legal registration to government bodies before you start a business.
Perform Market Research
- You must do market research before you start a business to determine whether it will be viable or not.
- Search your business competitors and their selling policies.
- Innovate your unique selling point, which will defeat your business competitors.
- Make your services faster, more innovative or less expensive than your competitors.
- Get customer feedbacks to understand their needs, wants and buying behaviors and improve your services or products based on customer feedbacks.
- Utilize social media and online reviews of similar businesses.
Marketing strategy
- Make detailed marketing strategy to promote your business, services and products to reach new customers.
- Marketing strategy may include different types of digital marketing, such as email marketing, social media marketing, website organic traffic, event marketing, etc. depending on the nature of your business.
Financial plan
- The financial plan should outline what you’ll do to earn and spend money.
- Make a balance sheet, cash flow projections and other financial data and documents.
Run a Trial
- After you officially launch your business, you should do a small local launch or trial before you go big.
- This policy will help you to identify potential challenges and make proper adjustments.
- After your small trial, ask your customers for their honest feedback. Using their feedback, work hard to improve your products and services that will eventually protect you from failure and investment loss.
Scale Up
- Scale up your business after you get success and meet your goals from small trial.
- Increase market area to sell your products and services.
- Hire a few employees to boost productivity, expand your marketing efforts or find a larger workspace.
- But always remember to scale up slowly but wisely. Otherwise, your funds will be impacted.
Low Cost and Free Resources
- Find out free or low-cost resources to reduce your spending and grow your business.
- You can get these free services from a Google search, workshops, mentorship programs and networking opportunities in your country.
- Contact national business association and government business authority.
Network
- Networking is the most important force if you want to start a business without money.
- Make connections with industry professionals, potential investors and other entrepreneurs who can provide you with advice, funding and new connections, and promote your products to the customers.
- Make online network online and attend networking events, such as conferences and trade shows.
Design a Savings Plan
- Identify your business cost and make a cost-income balance.
- Open a savings account to save some money every month.
No Bank Loan or Interest Free Funding
Explore some business funding from various sources without interest. Here are some options:
- Crowdfunding: You can try to arrange business capital from prospective customers to provide you with money upfront in exchange for a unique perk or promise down the road. You can run a campaign using any online crowdfunding platforms, such as Kickstarter, Fundly and SeedInvest.
- Friends and family: You can talk with your friends, family members and community members to get some money and support your business venture with a low- or no-interest loan or grant. There should be written terms and conditions of the loan or grant.
- Grants: Although it is difficult, you can try get grant for small business from federal and state government organizations as well as community development corporations.
- Venture capitalists: If you can properly present your business plan, and financial statements, some professional investors might be interested to provide you some funding in exchange for a percentage of your business profits or stock.
- Angel investors: Angel investors are not the same as venture capitalists. They provide their personal money for your business growth, and they may also work as your mentors and guide.
- Incubators and accelerators: High-potential businesses are monitored by mentors through these programs, and your business can get some funding through these programs.