ZERO-FINANCING (Part 2)

1)     LET YOUR PRODUCT SOLVE A NEED

To apply this tip, you must have a very unique solution. You must have also followed done your homework by doing a proper product survey and general research about the terrain, your competitors and potential investors. Now, the next step is to package the idea and present it to an organization that is in need of that service. You don’t need finances for this all you need is incredible marketing skills, an in-depth knowledge of the product/service you are offering and relevant information about the organization you are presenting this idea to.

It’s irrelevant to mention your financial status when you present this idea to them but you must ensure that your execution cost is included in the first installment of the project cost. If it’s a payment agreement of two installments, include your execution cost in the first installment. This way, you can execute the project seamlessly without any financial hitches.

For example, Mr. Ken is a Database Administrator with a good database software that can help organizations easily manage their database locally and remotely with ease. Company A has been experiencing challenges in managing their database for years. They have lost very relevant records and can’t effectively keep track of their data. Mr. Ken goes hunting for potential clients/customers to present his product to. His friend who works for Company A then tells him about their eminent database challenge. Mr. Ken presents his product to his friend who encourages him to present it to his boss. Mr. Ken presents the product to his friend’s boss in Company A. Company A is thrilled with the presentation and decides to implement the solution to solve their database challenge. Company A pays Mr. Ken the first installment of the project cost which unknowingly to them, contains the project execution cost. Mr. Ken uses the first installment of the project cost to execute the project successfully. The software is successfully tested and Company A begins to use the database software. Company A then pays Mr. Ken the final installment which is basically his profit.

This is a very effective method for zero-financing.

2)     PARTNER WITH A LOCAL VENDOR ANONYMOUSLY

This method is another smart way to successfully execute a business deal with little or no finances.

In this method, you basically do not need to have any sort of capital to startup your business. All you need is a good business deal and a strong drive for business.

To also apply this method, you might also have little or no experience or knowledge of the business deal you’ve secured but you should have relevant knowledge on how to run and manage a business in general.

This method best suits individuals who have no capital but have secured a business deal/contract. The deal/contract is usually one in which payment is made after the successful execution of the project/deal/contract. Once the deal is secured, the individual partners with another business to execute the job. The other business would be responsible for the execution but would do this anonymously without the knowledge of the client.

For example, Ann secures a deal to supply one thousand air-conditioning units to a new serviced residential estate. Ann signs a contract for the deal which indicates that all payments will be made after the delivery of the air-conditioning units but Ann has no capital for this business deal. So, Ann goes to a reputable air conditioner (AC) retailer to discuss this deal and proposes a partnership which gives her credit as the contractor. The vendor agrees to her terms and handles the supplies without an initial down payment. The supply goes smoothly and Ann is paid in full. She then transfers the vendor’s product and delivery fee to him and they both gain greatly from the business deal.

Summary: What you need to do is propose a business solution, secure a business deal and source for a third party to help execute the business deal anonymously.

This scenario is another legit method to startup a business with zero-financing.

3)     PARTNER WITH A REPUTABLE ORGANIZATION

This method is a very interesting and smart way to successfully execute a business deal with little or no finances and at the same time gain experience and knowledge about your field of business.

This involves an Individual without a registered business name or company selling a business idea to potential clients/customers, securing the business deal and then partnering with a registered company/business to execute this project. The registered company/business would make their resources (office space, documents, business tools and/or staff) available for the execution of the project. Before the project is executed, both parties will sign an agreement which would state how all profits will be split and how the project would be executed.

This method, requires little or no finances to startup the business, since the registered business would bear all running cost as indicated in the partnership agreement. All that is required is a great business idea, a great business and marketing strategy, a business deal, an existing and reputable registered company/business and a partnership agreement with the registered business. You should also have done your product research, market research and also have relevant knowledge on how to run and manage that business.

For example, Dave is a dynamic business man who has worked as an IT trainer in a leading IT school in Nigeria, he has also worked as a banker and a secondary school Computer Science teacher. Dave decides to start up an IT training business but has little or no finances to start up this business.

Dave shares his business idea with the HR Managers in some leading banks in the country and secures a business deal after six months of aggressive marketing. The bank specifies that they want their staff to be trained in a training location outside the bank. The bank also wants eighty of their administrative staff to be trained for four weeks.

Dave has no financial resources and has no business facility to execute this project, so he goes into a partnership with an existing and highly reputable Training Centre in the city where the bank is located. He makes use of their training facility, their training materials, official documents and also, their staff to execute this deal.

He is fully involved in the execution of the project but the deal is officially executed by both parties.

In this method, the partnership isn’t hidden and it is stated clearly that the business deal is executed by both parties. Another advantage of this method is that the individual gains more experience on how to successfully run, manage and setup the business in question. It’s a way to learn on the job and gather more experience.

4)     GET INVESTORS

Don’t just believe in your dream, get others to believe in it too. To sell a business idea to an investor, you must have thoroughly done your homework. No one wants to invest in a business that would fail immediately after it startup due to poor planning and a bad business strategy.

Once you have thoroughly studied the terrain, structured and packaged that business idea, it’s time to sell your business idea to potential investors.

Look for individuals/organizations/banks who are willing to invest in your business idea. Be flexible with your terms but very cautious when signing contracts/agreements. Get a third-party to read through agreements before you sign; preferably, a lawyer.

I wish you the best as you pursue your dreams and achieve them!

Look out for our next post and kindly share this post with your friends.

Thank you!

Ramya Venugopal https://www.dhirubhai.net/in/ramyavenugopalx/

Narendra Modi https://www.dhirubhai.net/in/narendramodi/

Shradha Sharma https://www.dhirubhai.net/in/sharmashradha/

Kiran Mazumdar-Shaw https://www.dhirubhai.net/in/kmazumdarshaw/

Vani Kola https://www.dhirubhai.net/in/vanikola/

Santosh Desai https://www.dhirubhai.net/in/santosh-desai-8073105/

Ravi Venkatesan https://www.dhirubhai.net/in/ravi-venkatesan-ba15b820/

Shashi Tharoor

Vartika Kashyap https://www.dhirubhai.net/in/vartika-kashyap-30653245/Parag Kar https://www.dhirubhai.net/in/paragkar/

Hari T.N https://www.dhirubhai.net/in/harimrinal23577532/

Tamal Bandyopadhyay https://www.dhirubhai.net/in/tamal-bandyopadhyay-818b2b9/

Prabal Basu Roy https://www.dhirubhai.net/in/prabalbasuroy/

Adhil Shetty https://www.dhirubhai.net/in/adhilshetty/

Procyon Mukherjee https://www.dhirubhai.net/in/procyon/

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