So you want to start your own business but don’t have any money

What are you to do in this instance, after all, don’t you have to ‘spend money to make money.’  “There has never been an instance of a successful business owner who did not spend a fortune launching the business.  This is what most people think. However, this is far from the truth. You will learn how to start a successful business with no money in 2020

  1. You need to keep your day job
  2. Start a business which sells simple and inexpensive services.  This will keep your business expenses low and help you generate revenue streams and cash flow.
  3. Work your butt off in your business – it should be as important to you as your girlfriend would be

Keep your day job 

Sure you are that budding entrepreneur with a great idea which will make millions when implemented.  To add to that, you have a great business plan, marketing plan, and business strategy which will guarantee your business’s success within five years of launching it.  However, as promising as this all looks and sounds, it is useless if you don’t have enough money to pay your bills. You need a solid and decent paying day job for that.  After all, your business will fail if you don’t have the funds to pay off your personal daily and monthly expenses.

Moreover, research shows a strong correlation between having a solid and decent paying day job and succeeding in your startup.  The reason why is because having access to a continual and reasonable amount of money at all times (a full or even part-time job provides this) makes you more confident in your ability to pay your business’s expenses.  You will be more willing and likely to take huge risks whose payoffs may not materialize for several years. This will allow you to establish a solid customer base and a solid foundation for your startup. Your new startup will grow much faster and will have much stronger basic financial fundamentals as a result.

Start a business which sells simple and inexpensive services

Unless you have a huge trust fund, are heir to a vast and successful business conglomerate, or have a great business plan and pre-sales which is sure to snag much needed investment funds for you, you don’t have a lot of money to invest in your startup.  After all, you have to pay your bills. That’s why you want to launch a business which sells simple and cheap services. A good example of this could be a housekeeping business, or a lawn mowing business.  

It doesn’t take a genius to figure out that these two types of businesses don’t need a lot of investment capital initially.  Anyone with basic cleaning or landscaping skills and the money to buy the inexpensive materials needed to operate these types of businesses successfully can start these businesses.  If you follow this logic, you will be spending far less on expenses initially, and you will be bringing in the much needed revenue streams and capital your business needs to be a success!  

If you want to be adventurous and start a service based business which requires a little more startup capital initially, like consulting, you can start a one person consulting business.  You then use the revenue you earn to fund the other products and services which you will also sell which will support your core business activity which is business consulting in this instance.  When you have this extra cash flow, it is like extra financial padding for your startup because you will have the money you need to pay for small daily expenses, and you will be able to build the prototype product or service which your business will eventually sell.  You will have a faster to market time and will be making more money sooner! You need to have a product or service project plan which will help you plan out different key dates for development which will lead to final rollout of your product or service. Also remember that a budget should be part of your project plan.

Put your heart into your business

Let’s face it, starting your own business from the ground up is not easy.  It is certainly not something you can do in the few hours of spare time you may get during the weekends.  Because even the smallest business is very complex, you need to put long hours and a great deal of effort into your startup business or else it will eventually fail.  

Since you are the boss and you probably have limited capital, you can’t afford to hire extra employees who could help you out with core and other business functions, at least not initially.  You will find that you will ‘wear many hats’ in your business and will be doing the ‘unglamorous work.’ This can be clerical tasks like answering the phones or filing, or it can be something as tedious and mundane as cold calling or doing door to door sales.

Don’t be afraid of doing whatever it takes to make your business an initial success.  Note that this is different from trying to make your business an instant success which almost never happens in the business world.  You may have to do a lot of cold calling the white pages (these contain various businesses in your vicinity) of your phone book.  You may find yourself doing door-to-door sales and walking around various city and residential blocks all day for several days on end.  Doing whatever it takes to make your startup a success often also involves you attending various meetups and trade shows in your industry and in related industries.  This will ensure that you develop the networks, connections, and relationships your business will need to be a success both in the short and the long-run.

Starting a new business is not easy

However it is very rewarding, especially if you know how to do it and when to do it.  This article, while not an exhaustive list of the things you will need to do to make your business a success, is a good start.  You will still need to read a lot of literature for this. But if this article encouraged you to become an entrepreneur, you should test the waters and jump right into the world of entrepreneurship with your dream product or service!’