START WITH NO MONEY
If you have an Entrepreneurial zeal and want to feel the thrill of owning your own successful business then let nothing stop you. Go for it! Creating and sustaining your own business isn’t just for money. It is a much bigger dream and passion – it is a way of life and fulfillment of life. This blog is mean for all those existing entrepreneurs as well as wannabe entrepreneurs who want to seriously know ‘How to Start a Business with No Money (almost)’
As an entrepreneur, I have in the last 10 years, started a few business lines with no money or very little money. Also I have quite a few good friends who have started from scratch and taken their business successfully to great heights. Therefore, I am proud to share in this article a lot of personal experience and the summary of valuable research. I’ll be too happy if the tips and information shared in this article can help even 10 budding entrepreneurs to start a business with no money.
Is it really possible to start a business with no money?
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If anyone has access to large funding or is sitting on pile of cash or can get business loans, it’s quite possible to build a successful business. However, the style of starting and building up business we are talking of, isn’t an easy one, but it’s one that many of history’s greatest entrepreneurs have followed. It requires smart working, clever planning perseverance, and dedication to get the business idea going from the ground up.
But if you are passionate and prepared to work hard you have the once-in-a-lifetime chance of building a successful business you can proudly call your own.
Getting Started
Sure you do need some cash and probably you have explored the avenues such as Venture Capital Funding, Small Business Loans from Banks, Government Schemes for Start up loans or loan from relatives and friends and you have not met with much success.
But if your project idea is not very much capital intensive then funding isn’t always necessary. The good news is that by following a few basic tips, starting a business with almost no money is entirely possible.
Here’s how to start a business with No Money:
1. Write down your business plan and design the budget around your resources
The business of business is business. You must know that what the exact business plan and revenue model is. In simpler words, “How do you plan to make money?”
If you are unclear, then you should first answer this question and then only take steps to start your own business.
The purpose of any business – big, small or home based business, is to make money. You have to have a road map (detailed plan) where you have looked at every aspect – from buying the raw material to selling; from working hours to work place. For instance, try to answer these fundamental questions (and by no means exhaustive):
- What is the product or service you are going to deal in?
- How much will it cost you to manufacture or procure your product or provide service?
- What will be price for your product or service?
- How will you increase the volume of your business?
- In what ways, you plan to be better and more competitive than your competitors?
- What will be your return or refund or replacement policy, in case of non satisfaction?
- What kind of people will you need to hire? Can the work be outsourced?
- What kind of equipment you need to have?
2. Feel the Pulse of the Market
Getting into a start up business is a big and serious commitment of time, money and skills – more by you than anyone else. Is your idea right and at the right place? Is your price competitive? Can you regularly and over a long period of time provide this product or service at a better quality or for a lower price?
This calls for the study of the market including a competitor analysis. Who are your competitors? What do they charge for the product or service you’re offering? What is your USP against their offerings? Research the market segment and the customer profile you’re attempting to address, as well as businesses that have (and haven’t) found success in this market.
If you find that your business model is workable on a sustained basis, congratulations – you may be on to something!
3. Study the Consumer Behavior and Consumer Preferences
This tip is almost an extension of the previous tip but it is a complete research on its own and is worth the exercise. You may have a great product but it is either before time or there is no buyer for it. For example, about a decade ago, a Soft Drinks giant introduced package water in the bottle and people laughed at the concept and there were few takers initially. But probably the timing was just right, the quality of potable water available at public places kept deteriorating and people were become increasingly health conscious. Today the company can hardly cope with the demand.
Sell a product or service which people need rather than should have, and which they feel comfortable buying without having to consult anyone else first. Similarly the concept of pre – cut and frozen vegetables which are ready to cook is great in metros where both the partners work but not in semi urban and rural areas where there is no dearth of time as well as the supply of fresh vegetables.
On the positive side, you may get many specific ideas in the process which can help you make your business plan better and improve the profitability also.
4. Do not Quit Your Job Yet
If you have carefully and diligently worked on the first three tips, then you must be quite ready to take the plunge and start your own business. But wait, it is highly recommended that you keep your current job.
There are so many uncertainties in the business and the unexpected events – especially for the inexperienced new entrepreneur they can be quite difficult challenges. So if you have an assured and a regular source of income, you save yourself from the tension of not knowing how you’ll pay your unexpected liability or mortgage or any unplanned debt.
Of course, this will mean not working just hard but work harder. But it is a practical strategy and your working extra hard will not hurt you – physically or mentally. Though in real life this process is very difficult to implement, but better safer than sorry. If you have a family to take care of, you can’t jeopardize your family’s needs by giving up your basic source of income to pursue a personal dream.
When your new business begins to pick up steam, you can gradually make the transition from a full time employee at your old job (or at some other place) to a consultant or part-time worker. Eventually, you can be at your own business full-time.
Though it’s harder to do work – life balance with your side business and with your day job but it’s much safer.
Another important tip would be to avoid signing an employment contract with a clause restricting your ability to pursue other sources of income or business in the same line. If you don’t understand the legal terminology, better consult a legal expert.