All too often aspiring entrepreneurs give an excuse of messed up finances as the only reason they haven’t started a business yet. But according to established entrepreneurs and financial authors, money is just a small part of the grand equation of starting a business venture. In the UK, for instance, the average cost of starting up a business is a around the £300 dollar mark.
So, which magic do successful entrepreneurs pull off to start a businesses with limited resources. Or is there any magic at all.
The planning stage:
Before embarking on the business, it’s vital to research on your market dynamics as this will help you craft a business model that wins you clients.
Know your audience
Who exactly will you be seeking to sell to when your business finally takes off? What specific needs will your products help solve? Who are the competitors in this niche and how can you outperform them?
It’s essential to analyze your target market as the knowledge gives you confidence and agility to craft a marketing regimen that pulls in the ideal client.
Many middlemen have used their mastery of the market to connect sellers with buyers. These talented salespeople do not use their money in their dealings yet earn commissions. You can also take cue from these shrewd business people and start to earn.
List out what you can do without money
The money trap can make anyone feel helpless and destined for failure. That’s why starting a business on a lean budget, or no budget at all, dictates that you teach yourself to attend to certain tasks without spending a dime.
You can, for instance, learn how to create marketing content and design your own business cards rather than outsourcing. This may seem too much of a sacrifice at the early stages but you’ll come to appreciate the skills at the latter stages especially when you need to recruit new employees.
Have a mentor
I would say that this is probably the most important. When I was in my early twenties I had a friend and mentor who guided me as I was getting into art and design.
I went a long way with that. I probably would not be where I am had it not been for him. In every market situation, there is that one entrepreneur who has seen it all and done it too.
Mentors have varied experience and their guidance can help you wade through the murky start up stage. A mentor does not necessarily have to be dealing in the same niche as you are target but they must be distinctively successful for you to trust on them.
So you have the planning stage in place and it’s all nice and dandy. How do you go about getting your venture up and running. Let’s go to the execution stage of your business.
Fashion your business around the audience
Since you don’t have the resources to carry out an elaborate marketing campaign, it helps to make it easy for potential clients to find your business. As Neil Patel once said, what matters most is making your customers as comfortable as it can get.
If your audience likes to hang on social media, then take your business to them by integrating social media into your brand. If your target clients favor buying online, ensure your brand is fashioned to suit their style. Customizing your business to suit the circumstances of your audience slashes most of the cost associated with running a business.
Value small beginnings
Google was started in Susan Wojcicki’s garage, the first Lotus car was built in a stable and Jeff Bezos started Amazon.com from his garage. Today, all these companies have turnovers running into billions. A humble beginning gives you a unique opportunity to grow with your business, to understand your market and to create products that solve specific problems. That’s why you should give it your all to ensure your startup pulls through the early stages of growth.
Seeking financing on Crowdfunding platforms
One important requirement as your business gets a foothold is injection of capital to boost growth, improve service delivery, and hire better workforce to complement your efforts. But how do you overcome this malignant obstacle when banks and credit unions won’t lend you money?
Modern technology may have the answer. You can share your plight on interactive social platforms and pitch for funding. Since you’ll have already started the venture, it will be easier for crowd funders to support your business by donating money.
Keep it simple
Starting and growing a business is a tasking affair more so when you are cash strapped. To keep it all in your stride, you should ensure that you have control over every aspect of the business. This includes the finances, expansion, production, marketing and pretty much any other thing that is your business.
Besides retaining a simple business model, it also helps to only spend your money on what is actually a necessity, even if you maybe making profits by the day. You don’t need to spend your limited financial resources on a fancy office, expensive equipment or a showoff kind of a marketing gig while you can do just fine with the ordinary supplies.
Seek a strategic partner
Do you know there are thousands of moneyed people in your neighborhood but who do not have as good business ideas as those of yours? If you have a good business plan and the skills to convince such people to opt in, you can get the necessary funding to start you off.
Your partner will have contributed the starting capital while you will be offering the expertise needed to take the business forward. But remember to anchor your partnership in law lest you run into disagreements and lose everything you have worked for.
Network without ceasing
Networking opens an avenue to form new relations, generate business leads, keep abreast with market trends, and basically gain an access to a platform where you can converse with like-minded individuals.
It’s also in the process of networking where you will meet potential investors and high placed clients. These will help grow your business to new markets or avail the necessary funds for further growth.
Financial limitations should not ruin your dream of turning that brilliant business idea into reality. There are plenty of resources and business ideas that you can start on a lean budget and grow to big brands over time.
Perhaps the one place I would look if I wanted to start a business is within the online platform. The obvious reason being that you don’t need loads of cash to start.
Investing your time in learning and following what you feel you are passionate about is key to your success. Not what makes more money. The hardest thing about all businesses is when you have no motivation for what you do. That’s why many people fail.
Click here and read about my personal journey into the online business world. You too can turn your passion or interest no matter what field or career you are in into a profitable online business. Best of all, you don’t need money to get started.
Many thanks for reading my post. If you have a question or a comment on starting a business with little or no money, please leave it below. I would love to hear from you.
Hi there. Great to connect with you. I worked as a graphic designer for many years but could not seem to make much headway. A few years ago I discovered internet marketing and that is how this blog was born. Hazina is a Swahili word which means treasure. It’s what we do here. We help people just like you find their own online treasure. Check out this amazing community based online education program that has helped me build a successful online business and how you too can have a piece of the action.