One of the biggest things that holds people back from starting a business is a lack of startup money. Capital does help a business grow faster, but you can start a business with little or no money in your pocket. You’ll just have to work harder and be more creative until your business takes off. Check out these six tips for turning your ideas into a business when you have no capital.
Avoid Unnecessary Costs
Business expenses quickly add up if you’re not careful. Don’t go out and buy a new computer or hire employees until your business gets to a point where it can handle the costs. Work with what you have and try to avoid unnecessary costs. For instance, many businesses can be run from a home office, at least during the startup phase. There’s no need to rent office space until you’ve outgrown your home office and have the revenue to support the move. Always think twice before pulling out your credit card. Managing your money is critical at every stage of your business, but especially at the beginning.
Barter and Trade to Get What You Need
Don’t forget that there are ways of getting the things you need without spending money. You can sometimes trade your services for the products or services your business needs. For instance, if you have a tax preparation business, you can supply this service in exchange for a logo or website design. Be creative, because more people are open to bartering and trading than you might think. As long as both parties get something they need, no money has to change hands.
Build Capital Through Crowd Funding
Many businesses turn to crowd funding when they need money. Sites like Kickstarter, Indiegogo, and GoFundMe are excellent ways to raise money. People are willing to give you money if you promise to give them something in return, even if it’s at a future date. Crowd funding is different from selling equity shares in your business. You do have to promise something in return, but it can be something like a discount or first chance to buy your product when it becomes available. Many businesses have started out through crowd funding. It’s a great way to go if your business idea requires a lot of money at startup but you don’t have any capital.
Look for Free Advertising and Marketing
You need more exposure to grow your business, but advertising and marketing are expensive. However, there are all sorts of ways to get free exposure for your business, such as submitting press releases, sharing your story through social media, and spreading the word by mouth. Always look for free advertising and be willing to try new things to reach new audiences. You’ll probably have to spend money on advertising at some point, but you can skip this step when your business is new.
Sell Something for a Larger Company
One of the best ways to start a business with no capital is to sell items for an established company. For instance, you can become an Amway consultant by taking advantage of the company’s extensive resources and marketing. If you’re a great salesman, you can build a successful business of your own through a larger company’s products.
Sell Items Online
The internet is an excellent business tool when you have no capital. There are many websites that help you sell things. eBay and Amazon have the broadest options, but you can also use Etsy, Bonanza, and Abe’s Market, depending on what products and services you offer. You will eventually need a business website of your own, but you can start out by selling on other people’s sites. There’s typically a listing fee or a commission. If you’re super concerned about money, a commission fee structure is the best way to go.
It doesn’t matter if you don’t have any capital. You can build a business from the ground up if you’re willing to put in the sweat equity. All you need is a good idea and time to make your business dreams a reality.