How to start a business with no money?

People young and old complain that they want to start a business but have no money. If you have a viable business idea don’t let the lack of capital stop you.You might be asking “What type of business can I start with no money?”

Here are some brands that started with almost nothing:

• Whole Foods Market – In 1978 John Mackey and Rene Lawson saved and borrowed money from friends and family to open their first store in Austin, Texas. After getting evicted from their apartment, the two lived in their first store.
• Apple, Disney, Google, Harley Davidson, Hewlett-Packard, Lotus Cars, Mattel, Yankee Candle Company all started in garages.
• Nike – Founders, Philip Knight and Bill Bowerman started selling training shoes from their car trunk.
• Dell – Michael Dell started out as a dishwasher, making a whopping $2.30 per hour. Dell started selling PC out of his college dorm.

Keep your job.

Starting a business is risky. Starting a business with no money is even riskier. Don’t jeopardize your family’s financial well-being. The longer you keep your job the less pressure you put on yourself. When you start your business you are not ready to walk away from a steady paycheck. It’s true that you’ll have to work harder, but you can keep paying your bills as you grow your business. Once your business starts to generate revenue, you can start thinking about transitioning out of your job.

Stick with something you know.

Build on your passions and experiences. Instead of trying to start a business in a niche outside of your comfort zone stick to something you know. Build your business on your skills and knowledge. It is true that you can learn new skills, but it will take time. If you want to start a business quickly, you have to focus on what you can do now not years from now.

Learning new skills will require more time and additional expenses. You might have to take courses, get licenses, pay consultants, etc. Starting a business in a field familiar to you will give you additional confidence.

Do all the work yourself.

Starting a business with no money means that you have to learn to do things that you would normally delegate to an employee or an outside company. I agree that it’s exhausting to do all the work yourself, but you don’t have the budget to hire help. Doing everything yourself you will be able to put every dollar back into your business. It will be tough, but it is the only way to build up a cash reserve when you start a business with no money.

Offer a service.

Some of the best business you can start with no money is a service business. You can start a service business with practically no money. Instead of money what you need is the ability to knock on doors and make sales. Even if you ultimately want a product business, owning a service business can help you get there. Use the service business to finance your dream business.

Here are some great product businesses that started out selling something else:

·    3M – Started as a mining company. From that, they went on to sell sandpaper, then masking tape, the “Scotch Tape”.

·    Microsoft – Started out by doing sporadic software development gigs.

·    37signals – Started out as web designers before they have created products like Basecamp.

Create a professional website.

If you’re offering any type of business service, a digital presence will help you get more clients and add to your professionalism. Websites can be setup for with little skill and cost, there are thousands of professional website templates online for free that can help get your business website up within a few hours. It’s essential you use a professional domain name for your business website, such as the name of your business or your own name. Online domain search tools like instantdomains.com will help you save time by checking if your website name is available for registration.

Make it public.

Starting a business with no money means that you have to work hard to get the word out. Don’t keep your business a secret. Tell as many people as you can. Call your friends. Explain it to your family members. Make it public. Telling people will help you in several ways. For starters, it will give you extra energy. More importantly, it might help you land some of your first customers. People in your network could make valuable introductions.

Invent something and license it.

If you are an inventor, you could license your patent to a company. In licensing deals you normally get a percentage of sales. The best way to license your invention is to seek out manufacturers. Technically, it is called licensing your patent rights.You want to start out by developing a list of manufacturers. Look for those that are already making products in your target niche. One or two manufacturers is not enough. Identify at least, 25 potential manufacturers.

You can find manufacturers by looking at product packaging, online research, networking, and visiting trade shows. Libraries have excellent resources to locate manufacturers. Thomasnet, WikiMachine, ManufacturerUSA are possible resources too.Reach out to manufacturers with a short message about your invention. Provide enough information to trigger interest, but don’t overwhelm people with data. LinkedIn can be an excellent resource to find the appropriate contact person.

Consult with an experienced licensing attorney before you enter negotiations. Ultimately, the licensing agreement will include details about upfront payments, exclusivity clauses, percentages, and infringement issues. You could really do yourself a major disservice by entering into an agreement without professional help.

Partner with an entrepreneur.

Many businesses are started by solopreneurs who quickly become overwhelmed. Most entrepreneurs would want you to buy yourself into a business partnership, but there are still ways for you to do this with little or no money.

You could find a business where the owner is about to retire. The owner of the business might want to sell the business, but the reality is that most businesses never sell.

Get a credit line.

Businesses are commonly funded by lines of credit. You might end up using a credit card to help you with your cash flow. The key with credit lines is it is no substitute for revenue. Use credit lines only as a temporary measure, not as an alternative to making enough money to pay your bills.

Use crowdfunding.

At a time when 98% of the business plans are rejected by VCs and accredited investors, crowdfunding offers a great alternative for entrepreneurs. Crowdfunding requires a lot of effort and dedication, but is a great option, especially for consumer product businesses. The great thing about crowdfunding is that it gives you access to capital without giving up equity.

Apply for government programs.

Apply to the Small Business Administration (SBA) and other government agencies for help and funding. There are business financing options for women, veterans, and minorities.Enter business plan competitions.

Avoid get rich quick schemes.

There are countless cases of “get rich quick schemes” both online and offline. They promise you everything you want to hear. Quick and easy money with little or no work. It simply doesn’t exist. You can start a business with no money, but you can’t start one without hard work, strategic thinking, and patience.

Don’t believe stories about overnight success. They are simply myths.