Do you have a great idea to open a business, but don’t have enough money to carry it out? Don’t worry: here are a few tips that will help you open a business without money. Today, there is a wide variety of resources that new entrepreneurs can use.
Launching into a business adventure with little more than enthusiasm, persistence and hard work, it is also known with the Anglo-Saxon term of bootstrapping. In other words, it is about starting a business on your own and without outside help. Let’s see these 10 useful tips that you can consider to open a business without money.
- How to open a business without money: follow these 10 tips
- 1. Work thoroughly on your idea
- 2. Keep your current job
- 3. Save for at least six months
- 4. In the beginning, it offers a service instead of a product
- 5. Analyze the market
- 6. Be creative
- 7. Start your marketing initiatives from day one
- 8. Build a network of contacts
- 9. Take a test and ask for opinions
- 10. Do not give up
How to open a business without money: follow these 10 tips
Many of us think that we have a great and innovative idea to open a business, but the truth is that many already exist. Think about what only you can offer. Is it something that has already been done in the past? And if so, how is your business model different or what personal touch can you give it? Develop your idea based on your skills and what you are passionate about. Nor can it hurt that in addition, your idea fits into one of the most profitable industries.
Do not make a hasty decision or rush into your new commercial adventure. The truth is that opening a business without money is hard and takes a lot of time. Eddie Cantor, a famous American comedian, put it this way: “It took me 20 years to succeed overnight.” So make sure you keep your current job while working on the project of your dreams.
First, you must understand how much it really costs to open a business. Most of the time, we believe that a much lower price of reality is needed to start a business. A safe measure is to add an additional $ 2,000 to the initial costs you have estimated and have savings of at least six months to allow you the creative and financial freedom you need to build the foundation of your business.
Try to offer a service that doesn’t require a location when you start; This will save you the location costs. For example, it is much more profitable to offer food delivery services that you prepare in your own kitchen than to rent a place to do it, although you may have to do so in the long run. Or for example, choose to offer hairstyles for special occasions instead of creating a haircare line. This will allow you to generate cash flow and gain practical experience within the business, especially if you want to open a business in which you still lack experience and practice. Remember that in the initial stages of a business, it is more important to generate cash flow instead of focusing on profits.
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Study the opportunities in your area and your potential market. What kind of service is currently missing in your area or could it be attractive to potential customers? Who will be your customers? Are there any competitors you should consider?
If you think your idea is good but it lacks creativity, try to gather as many creative ideas for small businesses as possible. Ask friends or other successful entrepreneurs, and research online. A brainstorm or brainstorm exchange session with your future partners will provide you with motivation and ideas on how to differentiate your business from competitors. It can be something as simple as launching a different and original marketing campaign, or, for example, decorating the facade of your business in a different and attractive way.
7. Start your marketing initiatives from day one
We already know… opening a business without money is already difficult enough. Now we also ask you to add a marketing budget? Yes and no. Keep in mind that marketing will be one of the best ways to attract customers, especially at the beginning, and what it will do in large part to keep them. But you don’t have to spend a lot on marketing. If you are imaginative enough, you can conceive very creative and low-budget marketing ideas. Remember to use social networks: they can be your best ally if you have a creative vision. Organizing small events where you show your products or services or giving classes can also be another way to attract new customers.
8. Build a network of contacts
The famous ” networking ” is not just a buzzword that millennials use as an excuse to eat and drink for free at events. You can strengthen your network of contacts anywhere! Do you use Uber or go by elevator? Those are great opportunities to establish contacts. From the moment you go out the door of your house, the whole world is a place to create contacts that may be useful to you: everyone you meet is potential customers or they know someone who can be. You can read more about it by reading How to network properly. Make sure you have your business card handy at all times!
9. Take a test and ask for opinions
To find out if your service or product really satisfies a need, ask people for opinions. There are many free ways to achieve it. It can be done through an anonymous survey that customers receive in their mailbox, and you can do it in person. You can also encourage people to give their opinion by offering them a free service or a discount when you start your business. Many business owners make the mistake of focusing too much on the future without taking into account that they can obtain valuable information from their present clients (or those who are about to be).
10. Do not give up
Be persistent and be prepared not to see profits at the beginning. May this not surprise you! And above all, move and be proactive by testing your product or service, making the most of your time and available resources.