November 19, 2017
Like others do, you are excited to start a business. Maybe you enjoy the thought of launching and having your own enterprise or maybe you have some ideas. You are willing to take risks such as leaving your job or pursuing without personal revenues for a while. However, there is a logistical hurdle that stops you and that is you do not have much money.
It might be a major problem, yet lack of personal capital must not stop you from pursuing your goals. As a matter of fact, it is possible to grow and start a business with almost no financial investment if you are aware of what you are doing.
Why Businesses Need Money?
First and foremost, you have to look at the reasons why businesses need money at the first place. There is no uniform fee for building businesses, so various businesses would have various needs. It is also important that you estimate first how much you require before starting to find some alternative methods to fund your business.
Consider these things:
- Employees, Contractors, and Freelancers. If you cannot do it alone, you have to hire people on your payroll.
- Legal Fees. Are you consulting lawyers throughout the process of business development?
- Operating Expenses. You should dig into the crannies and nooks and never forget about marketing.
- Memberships, Subscriptions, and Associations. What affiliations and publications will you subscribe to each month?
- Office Space. It’s a big expense and you can never neglect the things such as utility costs, internet, and janitorial services.
- Equipment. Do you require software or any specialized machinery?
- Supplies. Do you buy raw materials?
- Permits and Licenses. You might have to keep special paperwork and registry in mind depending on your area’s regulations.
With that in mind, there are only two ways to start a business with no or less money and that includes increasing the available capital and lowering the costs from the outside sources. You also have some options such as:
- Minimize Your Needs – Changing your business model is basically your first option to demand lesser needs. For instance, if you’re planning to start a company as a freelancer or consultant, you might reduce the expenses of your employees by being your own employee at the beginning.
- Outsource – It’s about getting funding from the outside sources.
- Bootstrap – This option invokes the concept of a warmup period for businesses. Rather than going straight to full-fledged business mode, you will start with the basics. You can also launch a blog a niche service, minimizing your scope, your profit and your audience to get a kick-start. If you could start as self-employed person, you will avoid some costs.
With such options, you will be to reduce your own financial investment to almost nothing. You might have to make other sacrifices including starting small, taking on debts or accommodating partners, yet if you believe in your own ideas, none of such losses must stand in your way.