Starting a business is an exciting opportunity. You may have an idea of launching and growing your own enterprise. With great fascinating ideas and the willingness to take risks, nothing should hold you back. Having confidence and a clear vision of how you are going to execute is all you need.
However, there is one big challenge stopping small entrepreneurs from accomplishing their dreams. Lack of enough capital should not be a hindrance from pursuing your dreams. Some people have gone to the extent of refinancing a home to finance a business. Here are tips on how to start a small business with almost no money.
Work from Home
Office space is expensive unless you need to meet your customers in an office set up, do not open an office. You can work from home to cut on the expenses such as rent, licenses, and permits. If you are rendering services, you can make your consultant services from anywhere. Start a service-oriented business. This is where you make supplies or offer services to clients then you collect funds later. Hold on from opening an office space unless you absolutely have to.
Do not hire
This means that you do all the work yourself. It is tough to do all work yourself, but you do not have to make a budget for your salary expenses. Having a full-time employee increases your overhead costs. If you must hire the services of an expert, then look for a part-timer or a freelancer. This will help minimize the costs of maintaining a staff. This will help you build a cash reserve and save.
Keep Your Present Job
It is highly recommended that you keep your current job if you have one. Those supporting their families may need a stable source of income to sustain them. There are many uncertainties in the business field. Especially for the new startups, you are not assured of a regular source of income. When your new business begins to pick, you can gradually turn to manage your own business full time. Balancing your full-time job with your side business is good.
You can raise capital from outside sources. In case you are having trouble accessing funds, there are some creative things you can do such as:
- Borrowing from family and friends on a short-term basis.
- Crowdfunding where a great idea can attract funding.
- Government grants and loans
Venue capitalists where partnerships or organizations tend to scout business already in existence
Bank loans where you open a line of credit with the bank then they check your credit score to fund you. A personal loan can also be granted according to your merits.