Starting a Business With No Money
When it comes to starting a business, most people assume that you need lots of money. However, that isn’t always the case. Some businesses can start without any money. In this article, we will discuss starting a business with no money.
How Much Money Does the Average Business Owner Spend?
Numerous business owners invest a lot in their businesses. For example, in the US, the average business owner will spend about $40,000 on their business. It is not uncommon for the first year of business for there to be a loss.
But that doesn’t mean that your business requires you to spend money. There are some options where you can spend nothing and still have a successful business.
What Businesses Can Start With No Money?
So, if you’re looking to start a business with no money, then you need to find the right niche. There are a couple of niches that you might want to work with. One is using a service. For example, being an accountant, marketing or another profession can sometimes be started with zero investment, if what you’re passing on is your knowledge.
However, other commercial entities need little investment. For example, you could start a POD business using platforms like Printful or Printify as part of your system.
Some dropshipping options might also be available. But you might need to look for dropshippers who will take manual orders.
Where to Save Costs
So if you’re looking to save costs on your business, then here are some locations where you can save money.
You don’t need to pay for a website to get started. There are free website options. But there are issues here. For one, you might be restricted on what you can use on the website, the traffic, website speed, and other elements. In addition, the provider will likely apply adverts to your website that you can’t control.
Ideally, you need a domain, these cost at least $10 a year. And hosting is about $15 a month. These aren’t terribly expensive. So if you can find a way to fund this, you will be in a better position.
2. Computer Technology
Most people have computers and printers at home now. Therefore, you can usually forgo these costs and start your business with what you have at home. Most computers can run websites and other software very easily.
Without money, marketing isn’t going to be that easy. It will take time and effort to make it work. However, there are lots of options when it comes to marketing. Social media can be done for free. You need to just continuously publish content that is relevant to your audience and then engage with them.
Another option is email marketing. You can use MailChimp for free as long as you have fewer than 2000 contacts and send fewer than 10,000 emails a month. This is a very generous amount and can help your business get going very quickly. Remember that email marketing is one of the most successful ways to market your business.
You might also want to attend networking events in your local area. There are so many business networking events that you can build a successful group of connections and potential clients/referrers.
SEO is also an important skill you can learn for you to build a successful business. Ranking on Google and other search engines is free. Therefore, get your SEO right and you can build a more successful business.
While many people think that products are going to be expensive, there are ways around this. You could try dropshipping. In this business model, you don’t pay for any goods unless they’ve been ordered. Setting up an account is usually free.
Another option is print-on-demand. It is similar to dropshipping, but you create your own designs to sell online.
The problem with these business models is that you can’t control shipping or quality control. Prices can also be higher per unit.
You don’t need an office or retail space to run a business. You can run a business from your home. The other advantage of this is that many tax jurisdictions will allow you to claim some of your home expenses from your tax burden, allowing you to lower the taxes you pay each year.
Another benefit is that sometimes when you incorporate the business, you can charge the business rental for the space that you use. So if you do eventually store products at home and are an Inc or LLC, you can charge rent to the business to your personal accounts for using the space.
How to Get Funding
However, there are going to be costs at some point. So you will need to know how to get funding. Here are some of the options that are available for your business.
Investors – Sometimes you can get an investor to give you a cash injection for your business. They will ask for a percentage of your business, which means that they get some of your profits.
Bank Loan – Bank loans can help to give you some starting capital, but there is a huge cost. You have to start paying almost immediately and you can sometimes struggle to make those payments.
Borrow From Friends/Family – Another option is to borrow from friends and family. Though if your business is not a success and you lose their money, there can be a strain on your relationship.
Crowdfunding – Crowdfunding is a unique way of getting financing by getting communities to invest in your business. However, you need to give something away for lots of people to invest smaller amounts into your business.
Grants – Sometimes local or national governments will offer grants to help small businesses to set up. Check with your local government about what might be available.
Final Word: Starting a Business With No Money
When it comes to starting a business with no money, there are limited options. You can look for investment or you could try to restrict expenditure. Above are some options for you.