Each year, thousands of ambitious entrepreneurs start new businesses. These entrepreneurs feel bright and full of hope.
However, it’s not easy. Many small business statistics show that by the end of four years more than half of them will be gone. But, if you have the creativity, organization, and discipline, you’ll likely succeed. Starting a business can be most challenging from a financial standpoint. You’re not likely to succeed if you quit your current job and just “go for it”.
Here are some pointers on how to start you business with little to no money;
Keep Your Present Job
Being practical is vital when you are thinking of starting a business. You need a steady source of income before you can set up your business, so it’s advisable to hold onto your current job. By retaining your present job, you will be more secure when you need to take risks.
You will, of course, need to spend extra hours and work harder. But the transition from being an employee to a business owner will be far smoother as you won’t have additional expenses to worry about.
Work on Your Business Idea
Coming up with a great business idea is just the beginning, but it is important to spend time diving deep into this phase.
Is your business idea truly unique? Or, does it address a problem nobody else is effectively solving right now? What value will it generate? Is it something your target audience really wants? Or is it something you think they’d want? Getting answers to these questions is important to determine if your idea works.”
Starting your own venture can be daunting, but it can also be one of the most rewarding experiences of your professional life.
Analyze Your Market and Challenges
You may have a brilliant idea that you know will definitely work, but what about your competition? Will it be difficult for a rival to copy your idea and repackage it in a better way? If you’re looking for funding, a potential investor will most likely ask you this, so it’s very important to understand the market you operate in and your competition.
Look at the trends and identify challenges that your business may face. Then, understand how you are going to address those challenges to stay profitable.
Assess Your Capital Needs
You require money to start your business, but how much do you really need? Without a clear idea, you run the risk of coming up with an unrealistic valuation of your business, which will put off investors, get a loan application rejected or just cause you to burn through the savings you are devoting to your startup.
So before you start wondering how you should raise money, you should focus on evaluating your funding requirements. How much do you need to get started? How exactly are you going to use the funds?
Explore Crowdfunding Platforms
Crowdfunding platforms such as Kickstarter have changed the way entrepreneurs are raising money to fund their new businesses. Whether you want to sell a new software idea or set up a niche restaurant, you can get people to invest in your business.
Network with People
When you don’t have money to start your business, it’s essential you find the right people who can help. You may attend events and trade shows where you can find potential investors. There are also many online forums and social networking sites where you can find useful tips and resources to bring your business to life. Most venture capitalists and investors are quite active on social media, so if you can wow them with your idea you may find a great way to get started on your business dream.
Run a Trial
Want to be sure if your business idea is indeed unique? Run a test and find out. A pilot will give you the confidence you need to take your idea to the next level and mitigate risk. You can start on a small scale by giving away some freebies to a few people in your target audience group to see how they respond.
A small trial can give you some new insights to grow your business and identify challenges that you might have overlooked.
Gather Feedback
If you are planning to get into a completely new business, it would really help if you got a second opinion from someone who knows the market and the challenges involved.
A business idea that looks good on paper may not be that attractive when you actually get into it. An expert’s opinion may help you look at things from a different perspective and gain more knowledge that you may lack.
