Starting a business can be intriguing and it’s more intriguing if you have a lot of money to fund your business with. But what if you do not have any or you only have a few to spare.
Lets assume you have a fascinating idea and you are willing to take that idea up irrespective of the risks surrounding it and you do not have the adequate funds to run the project, then there might be a problem.
Although having limited capital can be a problem for you but that should not be a reason for you to abandon your idea and not pursue it because the bitter truth is that you can actually start your business with almost no money provided you know what you are doing.
Before we go into how a business can start with almost no money, let’s find out the possible causes to why a business would need money.
To start and run your business, a must have asset are your equipment like laptop for a graphics designer, a tailoring machine for a tailor and so on.
2. LEGAL BACKING
Getting your business legal like having a business name among other things could cost a lot .
3. WORKERS ( EMPLOYEES, CONTRACT STAFF, ETC )
While going into a business, having a lot of hands into helping you carry out your business activities could cost a fortune especially when the need is dire important.
4. OPERATING COST
As your business runs, you don’t expect things to happen for free like your marketing campaigns, you need to pay for them too.
5. MEMBERSHIP COST
No matter what your business is, there would have been many others in that same line of business and you need to associate yourself with them , most of these associations require that you pay a fee to be a member, sometimes it’s monthly or yearly.
6. FACILITY COST
No matter your business niche, you can reside in the sky, you will have to get a place on this earth and in most of the states and countries, you will have to buy an office space to get your business started with.
While running your business, there are some commodities that are needed to get the final product ready and these are called supplies.
With the above written already, to start and run your business successful with almost no money, you have to adopt either of two things which is to either lower your cost or you increase your available capital.
To do so, you will need to read the following tips am about to give you.
1. CUT DOWN YOUR NEEDS
Although human needs are insatiable, you need to reduce some of the costs .
For example if your initial budget for your business in terms of gadgets was 20 systems, you can reduce it to 15. By doing so you are saving yourself some expenses although it may affect your performance but that’s a small price to pay for you to kick off.
Also while cutting down on your expenses, you need to set up a scale of preference on your needs which means that the most important need comes first followed by the next and so on like that.
By doing these few sub-tips, you can save yourself a great deal of headache trying to find the right amount to kick-start your business.
I almost forgot, one key way to also cut your needs is to start small. You don’t need to employ tons of workers to get your work done, you just need a threshold amount i.e just the right amount of hands that will require to get the job done.
In addition to starting small, target potential customers within your locale then you can expend as cash begins to flow.
This approach is quite similar to what i mentioned in the last paragraph of the first tip. It’s about you starting small and instead of going full-into it, you can learn the basics by targeting potential customers within your reach.
This is a very good and descent way to cut your cost and maximize profit with the little money you have.
This happens to be the most commonly used approach when starting a business.
This involves seeking out ways to make profit by utilizing different available opportunities like meeting your friends and families for assistance, pitching your business to an angel investor or seeking out venture capitalists who will be willing to invest in your business.
With these few tips i have given you, you should be able to at least have an idea of what to do and don’t let you inability to procure enough funds stop you from pursing that business dream.
Read, share and take a step.
It all starts with a step.