For a while, let us think you wanted to start your business or you are fascinated by an idea to be implemented in the future. You are ready to take related risks like leaving your job, investing your personal revenue for a while. Still, you tend to take a back step – The reason?
You don’t have sufficient money needed to set up a startup. This might haunt you or this seems like a major problem. But insufficient capital should not stop you from pursuing your dreams. It is all the way possible to start your business with nil capital when you know what you’re doing!
Firstly, why do one need money?
There is no constant startup fee for building a business, so different businesses have different investments. So, first analyze how much money you need to sell your product.
Consider the following requirements for starting a business:
Licenses and permits
Supplies
Equipment
Office space
Associations and subscriptions
Memberships
Operating expenses
Legal fees
Employees and contractors
After considering this, you have been left with two paths of starting a business with less money – lowering your costs or increasing your available capital from outside sources. For this, try following these options to suit your business.
1) Reduce your needs
Your first option is to change your business model so as to demand fewer needs as listed above. For instance, if you are starting a company of personal trainers, you can reduce the employee costs by being the sole employee at first.
Until and unless you require an office space to work, try working from home. You can also cut out entire product lines that are too expensive to produce at the outset.
However, there exist few expenses that you won’t be able to avoid.
According to the SBA, a micro business can get a start with less than $3000 and home based startups need less than $1000.
2) Bootstrap
Your second option solicits the idea of a ‘warmup’ period for your business. Just start with the basics instead of going straight into a full-fledged business mode. However, you can start as a self-employed individual, by this you can avoid some of the biggest initial costs.
Once you start filling in your pockets, build the business you imagined piece by piece rather than all at once.
3) Outsource
Your last left option is to outsource the funds. There are many potential investors surrounding you, once you have hit the right button, you are likely to get started. Here we name few potential investors for you.
Family and friends
Angel investors
Venture capitalists
Crowdfunding
Government granted loans
Bank loans
With one or more from these three options, you should be able to reduce your personal financial investment to almost nothing.
Some small sacrifices such as starting small, taking debts or accommodating partners come in your way. But if you are confident about your idea, then none of these should stand in your way.
