Did you know that nearly 70% of entrepreneurs start a business from the comfort of their own homes?
This means that virtually anyone with an internet connection can become a businessman.
Best of all, there are numerous strategies to start a business with no money. You just need a little bit of courage and imagination to find alternative funding sources.
Studies show that the average age of a successful startup owner is 45 years, but this is not written in stone.
Mark Zuckerberg was much younger than that when he founded Facebook, a social media network which is worth more than $600 billion dollars.
In other words, as long as you think you have a brilliant idea, don’t hesitate to put it into practice!
8 Ways To Start a Business With No Money
You might be happy to find out that many successful millionaires and billionaires started their first business without any money, so you’re in good company.
Check out these tips to help you get started with your business.
1. Ask Friends and Family Members for Financial Support
Any sum of money is valuable when you first start your business, so you shouldn’t be afraid to ask for help from your relatives and friends.
You can pay them back later on when your company becomes successful or you can offer them stakes in your startup. For example, if your uncle contributed with a few thousand dollars, you can give him a 10% stake in your business.
2. Dive Into Your Savings Account
This is not usually the best idea, but it can work if you’re really serious about your startup.
Your savings account should remain untouched and only used in emergency situations. However, you can use a sum of money from this account to finance your new business.
Most entrepreneurs use about half of their savings account for this purpose. This is a good idea because you have some money left for emergencies and you also use some of it for your startup.
3. Keep Your Current Job
Most people start a side business while working on their day job and so should you.
This is the safe thing to do since you have the assurance of a continuous stream of money to support yourself while working on your startup.
The best thing you can do is to pour money from your current income into your startup and continue to do so until your new business makes a profit. For example, you can pay for a brand new business website to advertise your startup, web design services, making a mobile app for your business, etc.
4. Join Crowdfunding Platforms
A crowdfunding platform provides the best way to gather money for your upcoming startup.
This is a place where you advertise your business idea online. People from all over the world get to become acquainted with your vision and if they like your idea, they can make financial contributions.
Since thousands of people have access to crowdfunding platforms, your project can raise large sums of money in a matter of weeks. This will help you kickstart your business on the right foot.
Just make sure that your idea is truly brilliant to spark the interest of thousands of people who might be willing to contribute to your project. Think in terms of solving a current problem quicker or for a smaller price and you’re on the right track to success!
5. Attend Trade Shows and Events
Joining trade shows is also an excellent way to draw attention to your business and raise funds.
Numerous investors and sponsors attend trade shows. Do your best to pitch your idea properly and spark their interest. If they like the products or services you talk about, you can exchange phone numbers and get in touch with people who might be able to support you financially.
Communicate with your potential investors often and do your best to show them you’re a trustworthy person. A single motivated investor can direct thousands of dollars into your project, so you shouldn’t miss out on this opportunity.
6. Pitch Angel Investors
A similar method of raising funds would be to pitch angel investors.
An angel investor is an individual willing to provide capital to startups, usually in exchange for ownership equity. In other words, they give you a sum of money and you give them stakes in your business.
Make sure that you look on the internet for popular angel investors and pitch your idea to them. Remember that these are busy individuals, so you should present your business idea in a short, attractive, and concise manner.
7. Ask for Small Business Loans
Some banks are willing to lend you some money to start your business, especially if you have good credit card ratings.
You can visit local banks and present your business idea. It is possible to secure a small business loan if you meet certain criteria. For example, one of these criteria is for your business to operate in the US.
Such loans are usually governed by the Small Business Administration. If you meet their regulations, you might be able to easily secure a small business loan.
In some cases, you can even obtain a loan without having your credit checked by the bank. You can read more about no-check credit loans to learn more.
8. Take Advantage of Venture Capital
Apart from angel investors, you can also pitch your business idea to venture capital firms.
Such companies are looking for high-risk, high-return investments and they might be able to lend you some money if they like your idea.
For example, if you obtain venture capital when you just started your business, the company you’re working with might ask for a 7x return of investment or even higher.
On the other hand, if you obtain venture capital at a later stage, they might ask for a 3x return of investment.
Take Action Today!
It’s not easy to start a business with no money, but the rewards are huge if you manage to pull this off.
Use the aforementioned tips to get funds for your startup. If you don’t have an idea what your future business should be about, read our article on how to get into the cybersecurity industry.
