If you’re wondering that how to start a business without money, then you’re at the right place. Today, we’re going to discuss what business ideas to consider, how to choose the right idea and the process of implementing the right idea. Perhaps you’d have come across many people saying that they would have left their job if they had enough capital to start a business.
You would have also heard from people that they laid the foundation of their business with few dollars and succeeded in it. Others haven’t succeeded in it by spending a plethora of resources. In fact, it has little to do with the capital and more to do with willingness and your ideas.
Approach of your mind towards business
Our mind works in a certain way. For instance, you’ll start thinking about the business when you have an idea. But when you come to know that it requires a lot of money, then you end up leaving the idea by wondering that you should have known how to start a business without money. That’s how the idea dies and never pops up again. If the idea comes back again, then you reject it with a notion that it’s inapplicable due to limited resources.
Right way; how to start a business without money
There are two ways that the right business approach works. First of all, you should consider those business options that you could afford and falls under your investment. Secondly, you should look for investors to finance your business.
Looking for Affordable Business Ideas
If you’re thinking that you don’t have money and you shouldn’t start a business. Hold that thought, and you should follow this procedure of setting a minimum amount limit of 10 dollars or 100 dollars. For instance, if you don’t have the minimum amount; then you can manage to save it in a short while.
Now, it’s time to think of business ideas that fall within your budget limits. Since it’s an activity-based process, therefore, you should take a pen and paper, a laptop or a tablet, or anything that works fast and you feel comfortable with it.
Before starting the activity, you shouldn’t do it in haste, and take as much time as you need. It could be hours, days, or weeks. The goal is to perform the activity using the right protocol, instead of finishing it up because it’s not a race. Here’s how you should start;
You should start by creating a list of skills and expertise that you’re good at. It doesn’t mean that you have to be an expert and perfect in the field. If you have a fair amount of knowledge, it would be equally fine.
Now, you should create another list of skills that you have learned based on your interests. It could be hobbies and things you do for fun like boxing, sports, dancing, singing, playing piano or guitar, computer games, fashion sense, or sense of humor.
You should worry about establishing a business or money at this stage. Here your focus should be on creating a list with a free mind. However, you shouldn’t set a limit on your skills, just keep writing until it stops. It could be 100 skills or more and you should allocate a minimum one hour for creating the list and there’s no maximum limit.
You should prefer those skills that you love and order them accordingly. It’s important to keep in mind that passion doesn’t come easily. Sometimes, you have to add a lot of blood and sweat to it until it gets better.
Now, you should evaluate the skill list based on business sustainability in terms of 5 years. There would be days when you won’t like doing it. It doesn’t mean that you sift the list based on those feelings. For instance, business writing is my passion. But there are days when it feels like if I keep on writing, then my head would explode. Even then I keep on doing it. The point is such thoughts are normal, and you shouldn’t decrease the ranking based on temporary feelings.
Pick Top 3
Now it’s time to choose the top 3 business skill ideas. It doesn’t mean that we’re leaving the rest; we’ll revisit the list again to make sure that we’ve made the right choice.
Now you should generate business ideas relevant to your skill by using Google and note them down on the document. Don’t worry whether you’d find any business idea or not, because it won’t cost you anything. However, you shouldn’t consider the feasibility of the business idea, or its worth, its affordability, or it doesn’t exist today.
Most importantly, you shouldn’t hesitate while selecting the business idea. For instance, if your business idea revolves around making the dog poop disappear, then you’d many people online working on the same idea. If you think I’m kidding, check out here about the professional dog poop business.
Add more Ideas
Once you know how to develop a business idea around your skillset. Now, you should look for more business ideas. If you think that you could improve any business that other people are doing. Don’t waste your time over the notion of coming up with an innovative or creative business idea. You should keep in mind that great artists steal the work of others.
Revisit the Process
If you have put sufficient time and effort into business ideas list, then you would have roundabout 15 business ideas on the sheet. If you have fewer ideas, then you should repeat the process and add some more ideas.
It doesn’t mean that you’d have to give up if you have fewer ideas on the list. It means that you should spend some more time on the business idea sheet. Anyone could do it if one spends some time in it.
As I’ve mentioned earlier than you should choose any 3 skills, and then generate business ideas around them. The objective of this activity is to teach you how to develop a business opportunity around your skill. Even though if you don’t like the skill, but you can generate the business idea around it.
It rarely happens that you develop a business opportunity around the skill that you love. Sometimes an idea at the bottom of the likability list could develop a better business opportunity. You could develop interest in it over time.
Take a break
After finishing up the idea-generating activity, now, you should take a break and hunt down the business ideas in the real life. However, you shouldn’t spend more than 3 to 7 days. If there’s a gap of more than 2 weeks, then it would delay your plan.
You should look for opportunities while taking a break. For instance, look for the problems that people are facing, and think of the solution, and you could offer them a better solution.
If you come up with something interesting relevant to your skill, then you should write it down on paper. You shouldn’t just rely on your memory. The human memory fades away over time.
After spending days and weeks on the weeks, now you should narrow down the business ideas list to 5. You should further narrow it down to 2 that fall under the category of your affordability. Finally, you should pick the cheapest business idea that you could afford and has the highest sustainability over time.
If you have spent sufficient time and energy on the business idea generation sheet, then you’re ready to start the business at this stage. If you aren’t ready and have thoughts, then you should repeat the activity.
Advantages of launching a business on your own
Some of the advantages of starting a business without money or limited resources, and they’re as follows;
The biggest benefit of starting a business on your own is that it provides you complete autonomy, freedom, and control over decision making. It plays a significant role in uplifting your spirit and energy. However, the investors provide you capital, but they have their interest and influence your business decisions.
You’re running your own business, and then you have the flexibility to change the direction at any time. You won’t have to ask anyone’s permission. For instance, you’re running a homemade cheese selling business. You see an opportunity of increasing profitability by selling it through retailers or stores. You could exploit the opportunity right away. If there were investors, then you’d have to ask their permission.
Disadvantages of starting a business on your own
Running your own business or sole proprietorship is a highly risky venture. If you have invested limited resources, then you’ll end up losing all of your time, efforts, and energy. However, your personal asset would be in great jeopardy if it goes bankrupt or the customer files a lawsuit against it.
Limited resources would slow down your business growth. When you don’t have sufficient capital, then you won’t be able to exploit day-to-day life opportunities.
Capital Required Financing your Business Idea
Your best business idea may require resources and capital to amplify the probability of success. Here’s how you could raise funds to finance your idea;
Funding from friends
You should reach out to your friends, relatives, and acquaintances. Some of them would help you immediately as a goodwill gesture, others would ask for equity, and some would give you a loan. The reason your friends and relative are willing to help is because of trust. Therefore, you should live up to that trust.
You should tell them the truth that what they could expect from their investment in return, direct and to the point. It’s important to keep in mind that your relationship would change depending upon the investment and return forever.
Seed funding is a type of investment that rich people do on new businesses in exchange for equity. It’s highly risky because the business idea could win or fail. But the investors get higher equity in the business at a very low price.
For instance, a young entrepreneur has an idea of skates that could work without balance. A seed fund would make an idea become reality. Once you have successfully utilized the seed funding, then you could apply for the venture funding (more capital).
Crowdfunding is a business model where you raise capital and money from random online all over the world. It works in the form of donations where you present your business idea and the amount required to launch the business. People would make small donations so that you could get started.
Here people don’t make donations for the sake of equity. Instead, they get free samples, rewards, or enrollment when the product would be ready.
Advantages of Investment
Some of the main advantages of investment are as follows;
The capital investment allows you to grow your business in a short time and earn more profit. In fact, you could expand your business into more cities with additional resources. It would also allow you to apply for a loan from the bank when you’ve capital in the bank.
The reason people and investment companies agree to invest in your business because they trust your business idea. It means that you’re moving in the right direction.
When you’re running a business without investment, then it becomes very difficult for you to meet the daily expenses like bills, salaries, etc. You’ll end up consuming your profit and sales. However, the additional investment would smooth business operations.
When you’re acquiring investment from experienced investors, then they would provide you knowledge and mentorship. Their experience allows you to make the right choices and avoid the drawbacks.
Access to Services
Professional investors are running their successful businesses and they’re familiar with taxes, cash book management, or other legal formalities. When you work with them, they help you to develop relations with trustworthy people.
The investors usually have relations and contacts with bigger companies. When it comes to the sale of your product, then they can set up a meeting with bigger retailers like Walmart or Target within a day. It wouldn’t be possible without them.
Disadvantages of Investment
The investors own a certain percentage of stakes in the company for their investment. In other words, they become partners in the company and they won’t allow you to run the business on your own. For instance, Peter Thiel bought the equity of 10.2% in Facebook for his investment of 500,000 dollars. If the investment is bigger, then the investors would show more interest in the company.
The reason investors invest their money into the business is that they want to earn more. The founder of the business idea has other objectives like the growth of the business. The difference in goals and objectives puts extra pressure on the company.
The objective of investors is to earn more profit, and they would force to make profit-oriented decisions. For instance, your motorcycle firm sells bikes to a certain niche and they would force mass production. They don’t care about the interests of the business founder.
Professional investors don’t throw away their money as donations or charities. They exchange it for equity. However, the business goes through different stages in its life. The growth of the business increases their worth and lowers your worth. For instance, Mark Zuckerberg holds the equity of 28% in Facebook.
It’s not easy convincing investors to make an investment in your business. You have to arrange meetings with various investors and pitch your business idea at many places. Since your business idea is in the initial stages, therefore, you’ll have to face a lot of questions. The whole process takes a lot of time.
Conclusion: How to start a business without money
If you have the right attitude, then you can start the business today without wasting any more time. If you have doubts, then you’ll a lot of reasons not to. Now you know that how to start a business without money isn’t that difficult. If you still have any questions, just leave them in the comment box below. I’ll answer you as soon as I can.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.