Are you planning to put up a small business? Is your lack of capital keeping you from taking the first step?
Lack of capital is one of the main reasons why people cannot start a business. It is also a key factor why small businesses fail.
But did you know that you can kick-off your business even with little to no capital? Did you know that there are ways to keep your expenses to a minimum as you build your business’ foundations?
Continue reading below as we give you some valuable tips for starting a business with no money.
Common Challenges of Small Businesses
Before we proceed with the tips, let us first discuss some of the most common challenges you will likely encounter as you put up your business. Once you become aware of these challenges, you can better prepare for them by employing the right techniques and approaches.
Let’s take a look at three major challenges below:
Hiring the Right People
If your business requires extra hands, it is a must that you hire the right talented people. This is tough for most small business owners since onboarding a new employee costs money.
But the key is to not settle. Getting the right people from the get-go will pay dividends in the long run.
Finding customers is another challenge you need to go through at the start of your business. But make no mistake about it, today’s biggest brands all had to start small.
The problem lies with your name. Nobody knows about your brand. Nobody has tried your products except maybe some friends and relatives.
Thus, the key is to spread the news that your company exists.
Increasing Brand Awareness
In line with attracting customers, another major challenge is building and spreading brand awareness. For this, you need to use some public relations. You may also need to produce some regular content like blogs and short videos.
The key to branding is making noise.
Starting a Business with No Money
To address these challenges and more, you need to start right even if you don’t have much in terms of resources. Most of the tips below require time as an investment. Others will prompt you to make use of what you currently have.
Let’s go through these 10 tips for starting a business with no money.
Start with a Plan
Regardless of how big or small your capital is, you need to start with a plan.
No business will go very far without a strategic plan. The good thing about crafting a business plan is it will not cost you a dime.
Start with a name for your business. Make sure it describes or connects with your products or services. Establish the type of products you will sell.
From there, create a marketing strategy. You must lay out your plans on how you will sell and promote your items.
Review What You Have
Having no capital doesn’t mean you don’t have anything at all. Review what you have and identify what you can get or do for free.
Start by identifying what is essential to your business. From there, search through the internet for free resources you may use. Additionally, consider the people you know.
Some of them may extend a helping hand without charging you anything.
Conduct a Market Research
One of your main goals is to connect with a niche market. But to find your market, you need to conduct market research. Thankfully, this will not cost you that much.
However, you need to invest a lot of time when researching. Don’t rush things until you get a feel of what your target market wants.
Invest in Affordable Materials.
If you have little money to spare, you need to spend wisely. Thus, learn how to invest in small, affordable, but useful materials. Business cards will cost you around $20 for 300 pieces.
And if you have employees to pay, invest in a paycheck stub generator. This will help you keep track of your payroll and spending.
Build Up Your Savings Account
Since you don’t have a big capital, focus on building your savings account. This means saving enough to cover at least six months’ worth of your living expenses. This will help you focus more on your business without worrying about your overhead expenses at home.
Get a Small Business Loan
If circumstances force you to look for more funds, consider applying for a small business loan. Go online or head on to your nearest bank to inquire about small loans for start-up businesses.
Most of these loans come with flexible terms.
Sell First, Build Later
Be resourceful especially when selling online. Instead of hiring someone to make your website, create your online store via Facebook. Also, look for a free logo generator.
Sell your product first before spending it.
Use Social Media
If you’re looking to sell online, you need to work on your social media presence early. Start with Facebook. It allows you to post pictures and videos and offers analytics to track your progress.
After some time, branch out to Instagram. Create a YouTube channel and come up with weekly videos about your products.
Consider a Service-Oriented Business
One way of starting a business with little capital is going for a service-oriented one. If you are a writer, you can start producing content for company websites. If you are great in math, consider teaching students on the side.
After saving up some money, you can venture out in other types of businesses.
Try the Drop-Ship Approach
But if selling is your forte, consider the drop-shipping approach. This involves selling low-cost products with a little mark-up. The difference is you will not have to buy the inventory before you can sell them.
All you need is to connect with a company and offer to sell their products. List the products on your Facebook online store and market them accordingly.
Every time you sell a product, you get to take home the amount of your mark-up while the company gets the rest.
Increase Your Business Knowledge
Starting a business with no money is doable. As long as you identify your strengths and learn how to use your existing resources, you can get the ball rolling without spending that much.
But there are more things to learn if you wish to make it big. Check out all of our blog posts on business. We offer different tips that will help you grow your business in all aspects.