How to start your business with Zero Capital?
Asked by: Erin Couch
Yes, with right planning anyone can start a business with almost no capital.
Most of the legendary business was either started in the garages or in small spaces.
Thought of starting of a new business always gives me Goosebumps, and when it comes to starting a business with no capital than its hell difficult for anybody.
But it’s not just capital which creates legendary entrepreneurs, capital is just an ingredient for a startup but the main element of a successful business is the planning and management.
Let’s explore some of the most practical ways to start a new venture with almost no capital.
Start with what you know
“Start where you are, Use what you have, Do what you can” – Arthur Ashe
The biggest difference between the successful and failed lies in the authenticity of the business. Most of the business fail because they try to step into other territories which they never visited, especially when you have limited funding by your side. Before deciding the nature of your business you need to decide whether it suits your skills and knowledge?
Investing in a business in which we have expertise can help you to eliminate the excessive cost of consultation and experts that you will be hiring.
Skip Unnecessary expenses
Taking responsibility for your expenses is the first step to building a successful business.
You already have insufficient capital. you have to divide all your expenses in a very optimal way. Divide the whole capital in Chunks and try to use it accordingly. Unnecessary business expenses are the biggest reason for the business collapse.
Create a list of requirements and start grading them from 1 to 5 according to its priority. By this, you will be able to save a big amount of capital without any overspending. You will be confident enough to run your business until you have money left within the pocket and spend your capital wisely.
Avoid credit card
Excess of debts in the initial of business might force you to think about giving up. There are always two ways of using Credit cards- a smart way and a Suicidal way, it depends on you which way you would like to choose.
When there is a safe way then why use the suicidal one? Instead of purchasing the furniture, computers, stationery, and other utility items in one go try to have them with company revenue. This will create a solid foundation for business and protect it from any kind of collapse.
Prepare a Team
An efficient team plays a big role in any startup.
But your limited budget will not allow you to hire efficient workers, solution? instead of hiring them, collaborate with them.
Just like you, many people are thinking of starting their own venture, your task is to find efficient people for your startup and collaborate with them.
so if you are starting your own web development company find and collaborate with a efficient marketer, designer and developer.
Social media is one of the best ways to reach your target audience, whether you are planning to start a new restaurant or music class, social media marketing is a must.
It doesn’t matter how good your services are if you are unable to reach to your target audience. Invest more time on social media.
Social networking is your best friend when it comes to the promotion of business with no money. Let your family, friends, professional network know about your startup, create pages Facebook, a/c on Twitter, Instagram, Google+, LinkedIn, etc.
Focus and discipline
Everyone must choose between one of the two pains: the pain of discipline or the pain of regret.
You have to understand that you are starting your business with deficiency of capital so you will need to equal it with your immense focus and discipline towards work. Big companies don’t need to work that hard for a startup because they have dedicated team for every particular work and they are able to do with greater ease but in your case you are the one who will be doing the planning, analysis, managing, working and even risk management.
So get ready to work your butts off before you make your mind for startup.
Make at least 5-year plan / define your goal
Goals without plan is just a wish.
A goal without a specific timeline is just a dream, Defining goals work as a fuel to business and will guide you where you are going. The goal should be categorized into three types- short term, medium term, and long term
- Short term- it’s the tasks that needed to be completed within short notice of time.
- Medium-term– you can define your target for next year.
- Long-term- the art of deciding what you want to be after a few years can be categorized under long term goal. Ex- I want to expand my business from 20 employees to 500 employees within 5 years of duration.
Perception plays a very important role in life. You need to plan thing according to your need and the whole workflow should be ready before you start. Planning is the most important aspect of any startup, it makes you aware of your goals and helps you to stay focused and track your success.
Competitive analysis and Defining the blueprint
This process includes all the analysis that you need to do about the competition available in the market and note all the possible disasters that could happen to your startup.
Once the goal is defined then you will need to have some blueprint of how you are going to implement things and make your goal/dream come true.
Find a mentor
One good mentor can be more informative than a college education and more valuable than anything. One of the biggest competitive edges you can get is by finding a great mentor, a great mentor can prove to be the biggest asset of any business.
You got to have somebody how have already achieved what you are trying to get and someone you could rely on. Find that one person who has skills to motivate you, direct you and guide you through his experiences.