A Dollar and a Dream: Starting a Business with No Money

Did you know that around 65 percent of entrepreneurs started off their companies without enough money?

If you want to start a business without any money, you shouldn’t let your lack of capital put you off the idea. 

It doesn’t always take money to make money. But, it definitely helps to have plenty of cash flow.

But, if you’re going to be successful, you need to check out our tips on starting a business with no money. Let’s get started!

1. Don’t Quit Your Job Yet

You may be tempted to quit and throw everything at your business. However, you definitely shouldn’t do this. 

Many entrepreneurs keep their day jobs. You have 33 percent more chance of being successful with your business if you stay employed.

Without any money to launch your startup, you shouldn’t give up your only source of income. This is extremely risky!

You won’t have as much time to put into your business. However, at least you’ll be able to pay for your expenses while you’re still working. 

2. Develop Your Business Idea

Roughly 63 percent of twenty-somethings think they have what it takes to start a business. 

However, starting a business is a lot more than just having a great idea. But, it’s certainly a great place to start. 

If you don’t have any money to get started with your business, utilize the time by fleshing out your idea further.

The more you have thought about your business idea, the better prepared you’ll be when you’re ready to launch.

Reflect on who your audience would be and how you would generate value. This is the time for thinking rather than doing.

You need to start a business plan to outline how you’re going to transform your idea into a reality. 

3. Evaluate Your Funding Requirements

How much money do you need for your business to take off?

You need to work out how much capital you need to raise to get your business idea up and running.

Can you get started on a shoestring budget? Do you require substantial capital before you launch anything?

Unless you can provide prospective investors with concrete numbers, you’re always going to be dismissed. 

Before you even consider how you’re going to raise the funds for your startup, you need to establish what you need.

Remember, never underestimate how much you need. You could find yourself in trouble if you miscalculate your needs. 

4. Explore Fundraising Options

There are numerous ways to raise capital for your startup.

Have you got a great business idea? Are you prepared and organized? You always stand a chance of appealing to investors. 

Have you considered crowdfunding through platforms, such as Kickstarter?

The average successful crowdfunding campaign receives up to $7,000 in total. This might not seem like much, but this could be enough to get started.

You may also be able to identify a customer or partner who is willing to pay you in advance for your product or service. This could be risky. But, if you believe in yourself, it could make the difference.

5. Networking in the Industry

Money isn’t everything in business. You also need people. 

If you make connections with influential people in the industry you could get the money you need for your enterprise.

You should start attending trade shows and conferences to promote your business idea. Even if you’re only in the early stages of your business, you could make valuable contacts here.

Roughly 81 percent of attendees at trade shows have purchasing power. That means if they like your business model, they’ve got the authority to invest in you.

You can establish links with people in the industry via social media. Spark conversations on Twitter and shares articles on LinkedIn.

This kind of activity can lead to surprising opportunities. Let’s connect to discover how we can help your business. 

6. Work Like a Dog

If you want to become an entrepreneur, you’ve got to be prepared to work extremely hard. You’ve got to love what you do. 

If you want to be able to clock off at four every day, maybe the entrepreneurial life isn’t for you. For many startup professionals, working is the most important part of their life.

If you don’t have any money, you’re already starting out from a challenging starting spot. You’ve got to be prepared to sacrifice a lot to make a success of your business.

Do you realize how hard entrepreneurs work?

Around one in three entrepreneurs does a 50-hour working week. Some do even more than this. Over 10 percent of them work roughly 60 hours per week.

7. Take on Some Debt 

You may already be in student debt, have a mortgage or have taken out a bank loan. Therefore, you may not want to take on more debt at this stage.

However, for some entrepreneurs, it’s the only option to take a bank loan. Borrowing a small business loan from a bank is extremely common among entrepreneurs.

An incredible 40% of business owners applied for business loans in 2017. 

Since entrepreneurs are finding other sources of capital, the number of applicants has dropped over the past few years. Therefore, you stand a better chance than ever of being accepted for your loan.

Starting A Business With No Money

It takes passion and hard work to be a successful entrepreneur. But, eventually, it also takes money to make it work.

However, there are a bunch of amazing stories of startups emerging from nothing to become profit-making machines.

Starting a business with no money is never easy. But, if you believe in your business idea, you could make a success of it against the odds.

Do you know the difference between a startup and a small business? Check out our blog post to find out the answer.