If you’ve ever wondered how to start a business with no experience or money, you’re definitely not alone. Like many, the concept of being your own boss, earning millions and living a life of luxury almost seems like an impossible feat- wrong!
More often than not, banks are reluctant to fund startups, family and friends aren’t always in a position to help you out and sticking your expenses on a credit is, well, a fucking stupid idea. In these situations, your only option is to make it work with what you have and to follow the tips I’ve set out below.
Being able to start a business with little to no money isn’t a myth – it’s a very real possibility if you’re willing to put in the work and learn along the way.
Hold onto your job for the time being
Starting and building a business is not a get-rich-quick scheme – get that out of your head now. It can take months if not years to get to profitability. If you’re starting from scratch, hold onto your job until it’s feasibly possible to leave it – put simply, when you’re making a liveable income.
There are certainly no guarantees in the business world, therefore your job is your safety net if everything goes to shit. While you’re working hard to build your business, market your brand and increase sales, use whatever cash you can spare from your salary and invest in your business. Once you start making a profit, you can reinvest that back into the business and still have a salary coming in for personal use.
Whatever you do, be realistic – don’t quit your job until your business is in a position to adequately support you. It’s your lifeline!
Use free resources
At the start of the process, sit down and assess how to run your business and in which areas you’re lacking, be it accounting, management, pitching and so on.
From there, make the most of the thousands of free guides, courses and books on the internet outlining everything you need to know about running a business- and get learning!
This could include learning how to structure a business plan, drafting a marketing strategy, researching permits and licences, or learning how to register a business – whatever is, there is plenty of free information, resources, templates and tools to help you.
Utilise your skills
Question: does it make sense to start a business in an area or industry you’re familiar with and interested in or should you start something completely random?
It’s a no-brainer – when you’re deciding what your product or service will be, utilise your existing skills & knowledge and build your business around that.
For example, if you’re an incredibly skilled baker, maybe you should be looking at a business that involves baking cakes. If you’ve worked in hospitality and have a great understanding of that industry, find a way in. Your first venture doesn’t have to be your ultimate aspiration, but it is your gateway into the world of business.
Be smart, and harness your existing knowledge and experience to create something you’re passionate about.
Sell a necessity, not a luxury
My first real taste of success was when I launched a chain of lap dancing bars in my early 20’s. However, my first proper induction into business was actually selling uniforms and career wear. glamorous right?!
Maybe not – but it helped me raise enough revenue to invest in my next, incredibly successful venture.
If you’re starting out, use your common sense and play it safe. Unless you’ve invented the ‘next big thing’ and have dozens of investors throwing money at you, create a product or service that people NEED, not want.
That’s not to say you can’t get creative, but given the state of the economy and the fact people are struggling to pay for electricity, luxury may not be the best way forward right now.
Live and breathe networking
You might have limited monetary resources, but you can invest your time wisely by building a solid network.
I talk about this a lot in my blogs, but interacting with businessmen in your industry, listening to their experiences and following their guidance is one of the most valuable cards you’ll ever have to play.
Like myself, businessmen are not greedy when it comes to sharing knowledge. They’re more generous with it than you’d expect. Research the frontrunners in your industry and attend as many of their seminars, webinars, conferences and events as you possibly can.
After that, put your name out there and make some valuable contacts. Who you know is worth A LOT in the business world!
Replace fixed costs with variables
Every single penny you spend within your business should be necessary, even when you’re making millions. However, cutting back costs and limiting your expenses as much as possible in the early days is especially important.
As part of your business structure, you will need external help from time to time. But what you DON’T need to do is hire them full-time. Only pay for services as and when you need them. Make the most of freelancers. Hire meeting rooms by the hour and don’t pay for an office if only you need it.
When you’re trying to start a business with no money, don’t piss away cash when you don’t have to!
If you need funding, get in touch
If you reach a point in your business when you need some extra capital or funding to expand, it’s time to explore your options.
Securing funding as a start-up is a challenge, I’m not going to sugarcoat it. But if your business model is promising and you can prove to investors you’re smart, motivated and willing to learn, you’re in with a shot.
If you are a small, start-up business then the easiest ways to raise finance are usually through friends and family. But if you do want a more structured and professional funner then get in touch with me today!
To find out more about how I could help your business, get in touch for more information.
