Start A Business With No Capital
This seems to be an impossible mission, but the lack of personal finance will not be able to stop you from pursuing your dreams. In fact, you can totally build and develop a business without investing money - if you know how.
Why does a business need money?
You may figure out why a business must have money after considering the following factors:
License: Depending on each different geographic region, you must have to apply for licenses to start a business.
Equipment: Do you need any kind of specialized computer or software?
Office: Costs for renting an office are quite expensive, and of course, there are other costs like Internet or infrastructure.
Operation: Spending on managing and operating is also remarkable.
Legal fees: Whether you need lawyers or not?
With the expenses outlined above, you have two ways to start a business with little capital, or reduce costs, or call for investment from outside. Let’s have a look at these three following choices:
The first option: Cutting demand
The first option is to change business model in the direction of reducing demands listed above. For example, if you intend to open a company specializing in personal training, you can reduce the cost of hiring employee by becoming the only employee in the beginning. To minimize the amount of money needed, you can even search for cheaper sources, or if you do not necessarily need an office, then work at home.
The second option: Self-developing
Instead of starting with a full business model, you can start with the most basic things. You can launch a blog or a small-scale service, reduce the scope of customers and profits to get initial achievements.
Once you earn a certain profit, you can re-invest money or start your own business. Taking thing step by step is always safer than doing everything at the same time.
The third option: Using external resources
The third option is to mobilize capital from external resources. There are many ways to increase the company’s capital, even if you are in a situation of not having much money. Here are some resources you may be interested:
Friends and family: Do not underestimate the capabilities of your friends and family, even when you are able to call for help from other sources.
Angel investors: They are wealthy individuals who usually support business ideas right from their burgeoning, in order to exchange for a partial ownership of the company.
Venture investors: Conventionally, these counterparts are organizations focusing on developing enterprises.
The community: This form is quite popular, because with a good and feasible idea, you can almost attract investment from anywhere.
Loans and grants from the government: The Small Business Administration is established with the sole purpose to assist small-scale enterprises. If you meet the requirement, these institutions will provide loans and grants your project.
By choosing one of the 3 options above, you will be able to minimize your personal financial investment. You may have to sacrifice a lot of things, such as being a small-scale partnership and being willing to take any job or debt. However, if you trust your business idea, no difficulty can deter you from reaching dreams.