Start a business with almost no money! Best pack of advice you ever get
The irony of this nation is “people full of potential and ideas but vacant of recourses”.They ready to take a risk and are excited about to start a business. They might be enthralled with the plan of launching and raising their own enterprise. Even they are ready to sacrifice their current job or going without personal revenue for a while.
However, there’s one logistical barrier stopping them: they don’t have much money.
Over all, this seems like a core dilemma. Even so, lack money shouldn’t stop you from chasing your dreams. In actuality, if you have a dream and you really know what you’re doing then it’s entirely possible to set up and grow a business with almost no personal financial asset at all.
Let’s just find out that why a business needs money in the first place?
Well, we all know that there’s no regular “startup” charge for building a business, so every business will have diverse needs. It’s essential to figure out your needs and prerequisites before looking forward to different substitutes of funding for your company at the initial stage.
Moreover, with lots of incubation centres and the recent increase in start-ups industry will also assist you to find out the venture and angel investors to get seed funding for your startup.
But always prefer and present your business plan to an angel investor. They will honour your idea because they once lived with that dream but might be failed in that field or don’t have time to turn it into reality. Now they got a chance to fund the idea which is too near to their hearts.
Consider the following uses:
Licenses and permits:
Figure out what type of paperwork and registry is required to operate in that particular region in which you are going to start your business or is it even required at all?
Supplies:
Does your business involve any purchasing of raw materials? Who will be the supplier?
Equipment:
Does your startup require any specialized apparatus or software? What type of infrastructure do you need?
Office space:
No doubt this is a huge expense, and you can’t even ignore things like the Internet, utility costs and you also need to take a decision about whether to outsource back office tasks or not.
Associations, subscriptions, memberships: What kind of subscriptions for publications and affiliations will you need to do every month?
Operating expenses take each and every detail of your operating expenses, and yes! Don’t forget about marketing.
Legal fees: Are you consulting a lawyer throughout your business-development process?
Employees, freelancers and contractors: Being an entrepreneur the most difficult and vital task is to build up a strong and loyal team if you can’t do it alone; you have to hire people on your payroll.
Now, you have two main corridors to get into the business world with less capital:
Lowering your costs or increasing your on hand capital from external sources. So, you have three options here:
- Reduce your needs
The first choice you have is to make your business plan to demand less needs as listed above. For instance, if you were thinking to start a company as an advisor or freelancer, you could trim down your “employee” and operate cost by doing the major task by your own at the start. Unless you could do with office space, you can work from home. You can even do your primary research to discover cheaper sources of supplies, or cut out total product lines that are way too costly to manufacture at the beginning.
There are a small amount of expenses that you won’t be competent to evade, yet. Licensing and legal fees will set you back even if you slash back on the lot as well.
- Bootstrap
The second option you can have is to invoke the idea of a “warm-up” phase for your business. You need to start with basic or creating proto type first, to survey the market instead of going directly into the full-grown business approach. You might start at niche service level, dipping your scope, your customers (target and potential) and your revenue, in order to acquire a head-start.
If you can start as a self-employed individual, you’ll avoid some of the biggest initial costs. A payment processing company, such as Due, can be a big help when you are struggling to invoice and follow up professionally.
Once you start getting profits, you can put in yourself, and construct the business you anticipated piece by piece, rather than all at once.
Another advice is “never put all your eggs in a single basket” expand your portfolio by investing different business instead of putting in one after you start getting revenue from your business.
- Outsource
Your third option is regarding how to get funding from outside sources. Well, there are dozens of possible ways to hoist capital as you don’t have much yourself.
Here is a list of potential sources for you:
Friends and family: the best option you can have is “getting help from friends and family” even if you have to collect bit by bit from various sources to achieve your target.
Angel investors: the second best option after friends and family are “Angel investors “who are wealthy individuals with back business ideas early in their generation. They typically invest in exchange for partial ownership of the company, which is a sacrifice worth considering.
Venture capitalists: they are like angel investors, but are usually partnerships or organizations and lean to explore businesses that already exist in the market. In short, they don’t really want to take risks with niche ideas and markets like angel investors.
Crowd funding: if you really have a pioneering and great idea plus enough work regarding business plan, you can exert a pull on financial support for anything.
Government grants and loans: There are Small Business Administrations and various agencies at state or local level which exclusively work to assist small businesses to grow. They tender loans and grants to facilitate you get started.
Bank loans: one special advice for entrepreneurs is “never take loans for variable costs but if you don’t have any option then you can avail this opportunity for fixed costs only. As the decision of buying fixed assets from the loan will augment the value of your company or has the capacity to produce revenues.
By opting one or more of these three choices, you must be able to shrink your personal financial asset to almost nothing. At the starting point, it’s all about sacrifices, like entering into the niche or small market, willing to help partners or getting liability, but if you have firms believe in your business idea, nothing of these losses should resist you from chasing your goal.
Capital is the main obstacle to defeat, however it can be triumph over if you are smart and have a SMART goal!
