All too often it happens to hear the following phrase from a friend or relative “I have a business idea but no money!” Getting a business started with no money sounds impossible. Because to realize your startup dream, you first need to cover some initial expenses to get it off the ground. So, are there are really ways to start your business with no money at all?
Depending on whether you want to start a services business or launch a product, the need for money varies.
In the case of a service-oriented company, setting it up is much easier; you provide the service and then collect the money. The exact opposite is true for product-based companies. They require a significant amount of money upfront to develop a product or purchase stock.
We have previously discussed many of the ways you can gather funds that will enable you to start a business. You can choose between a line of credit, finding investors looking for interesting startups, or even organizing your own crowdfunding campaign. Either way, not having a certain amount of money should not be a deterrent factor in launching a startup.
In this article, we are going to provide you with information on how to set up a business with (almost) zero money.
5 things to consider before you start a business
1. Drop unnecessary costs
Τhe first thing you have to do is to define your new business’s basic needs. Cover those first and save the non-essentials for later when you’ll actually have the funds to address them. If you plan on starting a company in consulting, for example, you can be a solopreneur at first. If you don’t absolutely need an office, work from home!
This way you can eliminate employee and operating costs to the bare minimum. In case you intend on starting a product-based company, you can search for the best deals in the market and stock on supplies without spending a fortune at the outset.
However, keep in mind that there are some expenses you cannot get away from. For example, setup fees, licenses, and various legal fees.
We have already analyzed how you can bootstrap your startup in our “Bootstrapping your business. Is it for you?” piece, so feel free to check it out! We are not going to delve into this here, but bootstrapping is essentially one of the best ways to start your business with no money.
Instead of beginning with the full version of your business, you might want to start with just the basics. Start a blog, offer some primary services pertinent to what you’re actually going to be doing and collect money.
Invoicing applications, just like Elorus, can help you keep up with your outstanding invoices and do away with the billing process!
After a point, you are going to be able to invest in yourself and bring your dream startup to life!
3. Incubate your new business
Incubators can be great for startups that lack the funds but have an innovative idea accompanied by a decent business plan. What they usually offer is a “seed fund” to get the business developing in the early stages. Moreover, the majority of incubators provide an office space along with some administrative services. Such as accounting, counseling, legal services and more!
Incubation programs usually work under the umbrella of regional economic development organizations. They are also often associated with various colleges and university programs.
Starting a company with no money whatsoever is the core concept of all crowdfunding platforms available out there, like Kickstarter and Indiegogo. It’s incredible how crowdfunding has introduced some of the most groundbreaking products to the global market! It’s undoubtedly one of the most popular ways to start your business with no money.
Take for example 3Doodler, a 3D pen that can draw in the air using heated plastic. Their goal is to gather $30,000 but they actually achieved an amazing $2,344,134 and it is considered one of the most successful Kickstarter campaigns of all time!
Anyone can pledge an amount to back the products or services that have the potential of becoming a success. It is really an awesome and exciting way to set up a new business!
5. Angel investors
Finding an angel investor is also one of the most popular ways to start your business with no money! They are wealthy individuals that look out for the next big thing in their industry. Their goal is to invest an initial amount of money into your small business so you can jumpstart. Which usually leads to an immediate boost in your growth, of course!
Apart from the obvious financial advantage they can offer, these individuals are experienced in your field and can mentor you in making pivotal decisions for your startup’s success.
All you have to do is attend startup networking events and prepare a workable business plan to convince them your idea is worth investing in.
Starting a business with no money can happen!
It might seem like an impossible mission, but everyone can start a business without having initial funds! Always keep in mind that a well-thought business plan along with a solid product will get you places.
If you are desperate to start your own business and get out of your 9-5 job, don’t jump into it impulsively. Calculate your options, think of all the possible ways to polish your idea to be presentable to the world and start envisioning your future. As we have shown you, there are plenty of ways to start your business with no money. Follow the one that you believe best suits you and realize your dreams!