Starting a business from scratch requires capital, and it is one of the biggest challenges that entrepreneurs face. Now, you do not have to break the bank to start that business you have been craving for. You can use creative ways to establish your business and keep it running with little to no cash. Let us look at ways you can use to build a startup from scratch with literally no money to set you up and running.
Starting a Business with No Money
Save up for your business expenses
It is unlikely that you will set up your business today and earn top dollar profit tomorrow. That said, it takes at least six months for you to start realizing profits from your new business. It is advisable, therefore, that you put in place means to meet your expenses while running your business before you start realizing profits. That will afford you the time to focus on your business without the worry of how you will get money to meet your personal needs.
Make use of free stuff
You don’t have to spend too much on costs at the early stage of business. Why not take advantage of free stuff to build your business? For example, if you are building an online business, then you can start selling from Facebook, Instagram and the likes. You can also take advantage of open source tools and used equipment to set up the business. Remember, you literally have no cash to spend, so why not get creative and lower your costs?
Borrow extra funds from family and friends
Your family and friends are the closest to you. That means that you can pitch your business idea to them and get objective feedback on its viability. Once the idea is solid and ready for implementation, you can cordially invite them to support it by offering you some cash. You might get funding from people who are close to you and who have bought your idea already than strangers. That will also be easy to manage the risk as some might not expect to be paid back.
Invite people to pay you upfront
For the product or service that you are selling, you can have some loyal customers pay ahead of delivery for bulk orders. That’s one way to get money to purchase in bulk from the producer at a wholesale price and resell to your client at a retail price, therefore making good profits.
You should, however, make sure that you deliver the right product to your customers, without compromising on quality or the standards agreed upon purchase. For example, if you promised to deliver fresh vegetables and the customer paid upfront for it, it is only prudent that you deliver nothing less than what was paid for. That is important in building mutual trust and long-term customer relationships.
Additionally, you should consider the most affordable means of delivery. Try to save on the transport fees as well by picking the right mode of delivery. Remember that the goal is to save as much money as possible and to cater for the fixed costs of running the business.
One of the best ways to save money is to work with contractors and freelancers to access essential services that you need for your business. This helps you save money since you will only pay for the work done. Besides, you will be in a position to negotiate for the fees with the service provider. It’s better than having full-time staff who are entitled to a salary and many benefits you might not afford.
For example, to optimize the performance of your business, you may need to incorporate the right tech systems into your business. To get the best deal, you can outsource IT services from managed service providers who will assure you of quality and affordable charges. As a result, you will be able to save money for other business operations.
Apply for funding
You can get external funding for your business from small business loan lenders at a low-interest rate. You can also try to pitch to investors who might be interested in your business. The money can go a long way into funding business operations. Besides, you can also apply for grants. Grants are non-repayable funds given to businesses. Find out if there are any grants that fit the guidelines of the venture you are running and apply. Getting grants will help you scale up the performance of your business without worrying about finances.
It is possible to start a business with literally no money. However, this calls for hard work and a lot in creative ways to save and make more money. You don’t have to wait to have the cash to start that business you want to venture into.