Many a time I get the question, how do I improve my finances by adding more income to the mix? Most often my answer is simple. Start a business.
Then again the most common follow-up question I get is, how do I to start a business with no money? And my answer to this is often “Not all businesses need money to start”.
Typically for most business at least in their inception, you have to possess a lot of cash to get a business up and running. In fact, some of the best businesses can be started with little or no money whatsoever and that’s a fact of life.
The most basic requirement when aiming to start a business with no money is that you must need to choose the right kind of business and/or be willing to start slow and grow it.
How can I Start a Business without Money
The main question troubling would be business owners is How do I start a business without cash? I would say lack of funds should not be the reason you don’t move forward with your entrepreneurial dreams. Once you have a clear vision and confidence in your idea, you can always proceed without looking back.
Like I said earlier, there are quite a number of business ideas that require little to no capital at inception. But the truth is you would still need to bear some tiny expenses. To this effect, I would suggest ways you could bring a bit of cash flow into the business at least at the start.
Don't resign from your current Job just yet
The most common mistake that would-be business owners often make is that because they have this idea that they feel would revolutionize the world they go all guns blazing with that idea and most often resign from their current idea.
This is often a grave mistake. While it is good to have a mind-blowing business idea it’s worth its weight in gold to be pragmatic about your mode of execution. As Donald Trump once said in his book
“The Art of the Deal”. “If you aim for the long shot all the time you should know and be ready to strike out a lot… You can’t afford to be too greedy hence take care of the downside and the upside would take care of itself”.
When entering into a new business adventure you have to be careful with your plan of execution so that you don’t strike out and get frustrated and lose hope.
Starting your business on the side and keeping your day job is typically the way to go many a time. You have to be practical and realistic you would have bills to pay and this new business won’t be garnering serious cash inflow at the inception.
Your current job at the moment still guarantees a steady source of income which in turn allows you to make decisions with a clear head and in most cases going to be your best bet in this initial stage of your business.
Also the income from your business could also serve as a source of investment into this newly started business which in turn allows you to build faster and plan for the longer term while guaranteeing a smooth transition process from employee in a business to a business owner and an employer of labour.
Provide alternative services to People at a reduced cost
If you are skilled in one or two domains where you believe people would require your expertise. Then it suffices to say that you can provide these services to people at a subsidized rate since this is not necessarily the service/ product that services as your new business but rather a way to generate income to fund your new business.
The income obtained from the services you offer could become a stepping stone in funding your new business which can in turn bolster the speed in which you get your business up and running.
These services could be provided as a freelancer or a consultation specialist.
After you have garner some cash, it becomes expedient to draw a line in the sand as set your business goals and objectives. Below is an highlight if expectations if you are to build a successful business with little or no cash
Get ready to put in a whole lot of work
If you don’t have enough cash to pour into your new business. Then the least you can do is put your back to work. Nobody should be more invested in your new business idea than you if you are to become truly successful in your newly found business idea. Your drive and ability to hustle is going to be the core determinant in the matters that concern the survival of your business. Your zest towards the success of your business may just be the only reason your business survives.
You should be ready to be your business’ main salesman, main marketer and main customer satisfaction representative. You mostly would run your business as a one-man show at least at the inception so be ready to break some sweat.
Build a Minimum Viable Product
Before delving too deep into your newly found business idea. Give yourself some time for business validation, this is necessary before you commit a lot of capital into the business. To get some business validation it becomes expedient that you create a minimum viable product (MVP) to test the waters. A minimum viable product is the smallest possible meaningful state that your business can be in that makes sense of what you’re trying to build with your business. This way you get to know your would-be customers expectation and also reaction towards your new business idea. This would also help you in prioritizing features based on user potential customer’s requests and reactions.
Continuously Blind upon Market Surveys
This days the market is changing and each new day brings new additions in strategy and tactics that your would-be and/or current competitors are using to outwit you in the business scope. This could range from pricing strategies, newer features, advertisement campaigns, customer-incentives. It is helpful to make sure that you keep abreast of the game so that you don’t enter a business domain that has already been muddied or that the competition is too fierce or those that have practically non-existent demands from customers
The truth is this starting a business may be a daunting task. But there are business ideas that can be kick started without huge capital investments.
You may not require loans or seed funding to get started especially since nowadays we are in a service economy.
To this effect i would recommend that
- Just don’t resign from your current job just yet.
- Be ready to break some sweat
- Save money to serve as cash inflow for your new business idea
- Start with an MVP of your business idea not the full scale.