Did you know that nearly 60% of American billionaires are self-made? At the same time, more than 25 million US citizens started their own business in 2016 and still run it to this day. Having your own business can offer so many benefits, but many people don’t do it because they lack initial capital to start it.
But how to start a business from scratch with no money? Is such a thing even possible? Luckily, there are many ways you can start your business without a major initial investment. Keep reading this article to learn how to start a business with little to no money.
Work on Your Business Daily and Don’t Quit Your Day Job
Most people who are thinking of starting their own business are currently employed and work full-time jobs. There’s nothing wrong with this, but make sure that you also take care of your side hustle on a daily basis. It’s possible to allocate at least 30-60 minutes of working on your business regularly. Whether you create your business plan, organize your objectives or look for resources online, make sure that you always do something to make the dream of having your own business come true.
Find People Who Can Help You
Whether you want to have an online or offline business, make sure that you let someone else help you in your endeavor. Maybe there are people out there who have the same idea as you and it would be possible to join forces to create a better outlook. You can find people, partners or sponsors online on various forums, Facebook groups or websites, so don’t miss out on this opportunity.
Start a Website for Your Business
A website can help you organize your thoughts and make your business idea more presentable. Starting a website is not expensive and it can be done in just a few hours. Once you do that, create web pages presenting the goals of your business, its founders and partners, long-term objectives, open positions, and so on. When you want to attract more attention to your business, sending the link of your website to others is much easier and elegant than anything and it will create a great first impression.
Look for Crowdfunding Options Online
There are multiple ways you can obtain funding for your business. Websites such as Kickstarter allow entrepreneurs to obtain funding from multiple people who appreciate their business idea. If your business is very enticing and people would want to invest in it, you can raise thousands of dollars in private sponsorship in just a few days or weeks. There are multiple crowdfunding platforms that allow you to start your business quickly, so make sure that you explore them.
Ask Family and Friends for Financial Support
Although some people are reluctant to the idea of asking their loved ones for financial support when starting a business, this is an important opportunity that shouldn’t be left out. Even if they can contribute with small amounts, this is still better than nothing and it will help you get your business up and running sooner.
At the same time, you can repay your family members and friends with shares in your business. If your business idea is successful, your loved ones would be more than happy to be part of it and they might want to continuously support you financially when necessary.
Go for a Small Business Loan
Apart from the help that you can obtain from your family members and friends, you should also rely on banks for obtaining small business loans. These are special types of loans directed towards startups and you can qualify for a substantial commission if you meet the bank’s criteria.
In most cases, people can obtain several hundred or several thousand dollars on average which is great to start your business on the right foot. Make sure that you read the following article to learn more about what you need to qualify for business loans.
Save Money for at Least 6 Months Before Starting the Business
Even if you think you have no money now to start a business, you can begin saving a larger chunk of your monthly salary to cover the expenses associated with starting a new business. Experts agree that saving money for at least 6 months in advance should be sufficient for starting a small business. You should create a separate account for these savings and make sure that you don’t touch them prematurely.
Run Tests to See If Your Business Has a Chance of Success
One of the main reasons many small businesses fail is because there’s no market for them in the first place. You can avoid this pitfall by running a few tests well in advance. For example, you can start giving away a few freebies or promotional products and see if they have an impact on your targeted audience. Coming up with a few collections of promotional products is not expensive and you can distribute them at trade shows or large events.
If the products are eye-catching and generate enthusiasm, chances are that your business might have a future. This simple test will tell you if there’s a market for your particular business. Based on the results you get, you can decide when, where, and how to start your business to ensure the most return on investment.
Now You Know How to Start a Business From Scratch!
Hopefully, this article gave you a few powerful insights when it comes to “how to start a business from scratch”. Apart from these pieces of advice, make sure that you also partner with entrepreneurs who have already started their businesses and made them successful. If you can find a good mentor to help you, do everything you can to obtain some of his/her valuable expertise. This will help you avoid common mistakes and accelerate the success of your business.
For more useful tips and tricks related to how to start a business, how to make it work, and how to transform visitors into paying customers, make sure that you check out the other articles on our website!