For the longest time, thinking of launching a business with no money has been considered delusional. However, thanks to technological innovation, most barriers have been eliminated and the startup costs have drastically gone down. For most industries, it's now possible to launch a business with little money.
However, access to funding can still be a hassle. We are in a tough economic situation that makes it hard to borrow from family and friends, banks are more reluctant than ever when it comes to providing loans, and funding using credit cards entails substantial risk.
If you need some money to start your business, government-backed startup loans are an excellent place to start. However, funding is not the only option. Given that you follow a few basic rules, launching your small business with almost no cash is possible and this article will enlighten you.
1. Build Your Business Around the Skills You Already Have
What are you ready to do that someone else is ready to pay for? Perhaps you are good at programming, making clothes, painting, or even a foreign language. Do you have a hobby that you can turn into a business? If you have a skill that others do not, or would have to spend time and money to learn it, then it's a potential to make money.
2. Use the Resources Available to You
Do you own a car? Consider providing local delivery services. Do you have a kitchen? Consider baking or offering catering services at small parties. Do you have a spare room? If so, consider letting it out with Bookings.com or Airbnb. Also, if there's a library or a local cafe, you can take advantage of their free wifi to get your work done.
3. Get Clients to Pay Upfront
Asking your customers to pay upfront or at least half up front, ensures that your costs are always covered. Late payments happen to be one of the primary causes of business failure. As such, it's important to ensure you have a plan for getting money fast from the onset.
4. Sell Products or Services People Need
It is easier to sell something that people need, rather than want. Also, it has to be something that's easy to comprehend and does not call for intensive research before committing. Selling umbrellas at £10 each is a better option than selling hot tubs at £10k each.
5. Source any Equipment You Require for Free
You can go through the freebie section of listings on websites like Craigslist and Gumtree. Freecycle is another great community site where people recycle their unwanted items. If you need a van to start your business you can obtain poor credit van finance to help you get started.
6. Seek Free Advice on How to Launch a Business With Little to no Money
Look for free or cheap business and creative development events in your region using a platform like Meetup. You can also get free advice on startups from the National Enterprise Network. Basically, tap into any source where you can get solid advice on starting a business with little to no cash.
7. Do All the Work on Your Own
When looking to start a business with little cash, you probably don't have the money to employ others or outsource services. Also, you'll want to put almost all income back to the business. This is the only way you'll be able to stack up enough cash reserves to invest in new equipment, skills and ultimately grow the business.
8. Leverage Free Technology to Market Your Business
Create a website using free or cheap platforms like wix.com or Squarespace. Next, utilize social networking. It is a free, easy, and great way to promote your business without spending any money. There are numerous free platforms that allow you to market your company or brand. These include Instagram, Facebook, LinkedIn, and Twitter. Almost everyone is on social media nowadays and so, it's a great way to try and reach out. For more reach, you can invest a small amount of money on Instagram ads or Facebook ads.
9. Hold onto Your Job if You Have One
Perhaps the most certain solution to launching a business with little to no money is by working on it during your spare time and holding on to your job until the venture pays off. If it doesn't, at least you will still have a source of income. If it pays out, then you will have accomplished the freedom of being your own boss and doing something that you are actually passionate about.