For your information, business owners do not always have money, to begin with. Some of these business owners only have great ideas to start a business but they cannot realize it due to the lack of money. That is why these business owners often work together with investors to start the business. You do not have to feel insecure when you do not have money. As long as you have confidence in having good products or services, you will be able to survive. Not only confidence but you can also survive by knowing these ways on how to start a business with no money.
How To Start A Business When You Have Literally No Money
Cash Flow and Fundraising
The first thing that you need to do on how to start a business with no money is by pivoting. Pivoting here means that you need to use services to be able to generate cash flow and do fundraising. It is quite easy to do this. The first thing that you need to do is by providing some services and then you can collect funds. Do keep in mind that this step is perfect for a service-oriented business. If you are into a product-based business, you will be required to pay up-front capital to be able to run it. Confused? Do not be. You can start selling services to generate cash flow then you can gather funds for the product-based business.
Give It All You Can
The next thing on how to start a business with no money is by grind it out. It is not uncommon when you want to start a business, you need to get into the lowest to make it happen. This step means that you need to give the best that you can do in promoting your business. You do not have to feel shy or embarrassed when you have to knock on doors, work your booth, and make some deals. You will, at some moments, work alongside with local college’s business school and hire some students. Do keep in mind that you cannot expect an instant result. All you need to do is to believe in yourself and you will get your result.
The next thing that you need to do on how to start a business with no money is by getting creative. You can start this step by finding some sources everywhere. You might often hear that there is a traditional entrepreneurship philosophy that stated that if you want to be a successful business owner, you need to stick with one thing or one source and not differ from it. However, when you face some problems where you cannot find access to funds, you might want to try these solutions:
Same Source but New Ways
When your business encounters a cash flow crisis, you can use this way to save your business. You can utilize your employees’ skills to develop either your software or platforms. By doing this, you will be able to convince your customers that your company worth a glance. Not only that but you will be able to get investors to go to your company.
The next way is by getting a credit line. For your information, this way is not uncommon for beginners in the business field. There are even many banks or credit institutions that are willing to offer a 60-day term of payment and offer credit that specifically designed to support growth in the early stages of your business. The one thing that you need to keep in mind is that you need to avoid getting into debts when you are trying to expand your business. You need to keep your purchases to a minimum.
The next way is by using a business incubator. If you are confident enough in having a great business idea or killer business plan, then you might want to consider this solution. By using this business incubator, they will be able to provide funding that specifically designed to assist your business financially. Not only that but this business incubator can also offer office space or shared administrative services. Most of the business incubators are sponsored by local or regional economic development organizations. While the others are sponsored by universities.
Finding an Accelerator
This solution is similar to the business incubator program. However, this business accelerator demands a quick response to the investment. If you want to hit the market quickly, then this solution is perfect for you.
The last solution is to establishing crowdfunding platforms. This solution is just like changing the face of the capital of your business. You can use this solution whether you are developing a tech business, filming a movie, or selling jewelry. This solution can also allow the public to invest even a small percentage of money in return for a future buy-in.
Make Your Business Unique
The last thing on how to start a business with no money is by making your business unique or, in other words, differentiate your business. Do keep in mind that even small things can make a big difference.
When your business can achieve a million dollars in revenue, your chances in getting funding will increase greatly. This thing is what the Bank will consider. No matter what kind of business you have, Banks will look at your profit or loss statements so that they can make a decision. If you are considered a profitable company with a million in revenue and great personal credit history, banks will consider to lend you money that is up to USD 200,000.
Also, you need to consider a few things such as a letter of commitment from a notable investor, a contract to get revenue, and a valuable intellectual property to generate revenue to boost up your business to get the million-dollar mark. With that being said, if you want to start generating revenue, you need to do a really hard job. No matter what others tell you, there is no shortcut to getting a good profit. Maybe there is a shortcut, but it will not be an easy one.