You are having an excellent business idea and want to make it in reality by opening your own start-up. but, the fact that you have no finance may hinder your dreams. And this challenge is faced by most of the aspiring entrepreneurs.
So, the question is how to begin your own start-up with no money?
Though money is necessary to Embark a Business, a lack of it should not dissuade you to follow your dreams. Once you have a clear mental picture of your business and have confidence within you to face challenges and execute the plan of your business idea, getting the monetary resources to fulfill your goals or dreams may not prove too difficult for you as it sounds.
There are more than millions of small businesses running in the United States alone, and launching your new start-up and competing the present competitors definitely requires planning, hard work, and most importantly utmost dedication. And, if you know how a business runs and has taken correct steps to Embark a Business, a lack of funds should never stop you.
Tips on Embarking a Business With Little or No Money
Continue your Current Job
Having a regular source of income will make you more secure when you want to take risks in your new business. Also, it is very important to be practical when you are planning to begin your business, so it is advisable to continue your present work or job. It would be difficult though, managing work and business at the same time, by spending extra hours and working hard but at the same time, it would be a smoother way also as you will not have any additional expenses to think about once you become an entrepreneur.
Work on Your Business Idea
An excellent business idea is a pre-requisite for starting your journey as a businessperson. There are a few more steps that you need to consider prior you get started. Having a detailed idea of your business is important for the success of your start-up.
Ask yourself questions such as; whether your business idea is unique in the market? What revenue will it generate? Does it fulfill your target audience requirements? Or is it you who thinks they would want? Answers to these questions will help you to determine will your idea work or not in the market.
Market Research – Analyze Your Market and Challenge
Once you become cent percent sure about the working of your great idea, you need to conduct research about your opportunities and challenges. You will require information about your competitors and competition. What is the competition in your segment? Will a rival copy your idea and represent it in a far better way easily? Any investor will question you this when you approach them for funds. Thus, it’s very critical to understand the market and your competition.
The first step you should take while analyzing the profitability of your business is to understand the latest trends and challenges that your venture may face in the future. And, the next step is to get knowledge about how to use them in your business to gain profits.
Know Your Capital Needs
You require funds to start your venture, but how much do you really want? Without assessing your actual monetary requirements, you will not able to get a clear idea and might come up with an unrealistic valuation of the business, which will not satisfy investors and your loan application might get rejected.
So, you should focus on calculating your financial requirement prior to pondering about monetary sources and methods to raise money. You should have an idea of how much money you require to get started? And, how are you going to use it?
Discover Crowdfunding Platforms
Crowdfunding sites like Kickstarter have transformed the method of how entrepreneurs raise funds to start their venture. You can get people to invest in any business, whether you want to set up an organic noodle bar or sell any new software tool.
Connect with People
It’s vital to find the right people to invest in your business when you don’t have money to run one. You may attend various events/seminars and trade shows where you can meet potential investors. You may also become a member of online forums on social networking sites where you can get useful tips and resources to launch your business.
Investors and business capitalists are often active on social media, so if you can impress them with your idea you may find a great deal to embark on your business successfully.
Run a Test- Give Free Samples
Run a trial and find out if your business really unique. This will give you the confidence you require to take your business to next level and eliminate risk. You can start by offering freebies to a few people from the target audience and asking about their opinions and response.
A small test can provide you with new insights to develop your venture and identify challenges that you might have not considered earlier.
Collect Feedback From Experts
If your venture is completely new for you, it would be better to get a second opinion from someone who is familiar with the market and the challenges in that field.
It may be possible that the business idea which seemed to look attractive on paper may not be viable in real. An expert’s guidance may help you look at things in a different manner and acquire knowledge that you may lack.
Procure a Small Business Loan if Required
There are some loan programs that help first-time entrepreneurs to set up their ventures. The Small Business Administration (SBA) manages the loan programs provided by the US government. It asks you to meet certain criteria such as your venture must work in the US, it must qualify as a small business according to SBA guidelines, and you must run it for profit and should have a good credit score to become eligible to qualify for a loan. On the other end, in India, the government has come with a program called Startup India that helps start-ups with the finance and also provide exemptions in income tax once you fulfill its eligibility and legal formalities.