In this article we will share 3 ways to learn how to start a business with little money.
Have you come up with an excellent business idea and have you been excited by the idea of having your own company?
You are willing to take risks and why not, quit your job to dedicate yourself to this new project (learn how to do it here). However, this initiative collapses little by little when you realize that the money you have to achieve it is not enough.
1. Offer services to generate cash flow and then offer your product.
The first thing you should know is if what you are going to offer is a service or a product.
According to Ryan Westwood, starting a service-oriented company is easier. You offer the services and then collect the funds.
When you start a company offering products, it may require an upfront capital investment to get it up and running. If this is the case for you, consider selling services to generate cash flow and raise the capital to start a product-based business.
For example, Ryan’s company, Outbox Systems, started out this way. He wanted to connect two software applications, but he didn’t have the capital to build this integration.
Knowing that he needed money to fund his product development, he turned to another company, AtTask, and asked if he could build a software integration for them. By chance, an AtTask client wanted to integrate this company with his sales force, and he was willing to pay $125 per hour to build it.
Once the job was done, Ryan had his product developed and could now resell it to more people who needed this type of integration.
2. Reduce your needs.
Does your idea require any license or permit to be up and running? Do you need computers or other supplies? Do you require machinery or specialized software? Do you need an office?
The best way to start is for you to be the only employee in your company and thus be willing to work without large salaries in the beginning. Can you work from home? If you need staff, can you find employees who are willing to work only on commission?
Do the task of always looking for the cheapest suppliers, this without compromising the quality of your product or service. You can also start with a single product line instead of several more expensive ones; and then diversify.
No matter what you are offering, always remember to be very clear about priorities. So you can start your business as you grow; and with this you will avoid unnecessary costs.
In case you want to start a business with a friend, keep these recommendations in mind.
3. Funding sources are everywhere.
If you don’t have a lot of capital in your pocket, Jayson Demers advises the following options:
- Family or friends: Do not discard this idea from the beginning, you never know who may be interested in your product or service. If someone offers you a part of the financing that you were looking for, there will be another person who will give you what you are missing. It does not have to come from the same source. Also, your family and/or friends are the people closest to you and the ones you trust the most.
- Angel Investors: They are individuals who are precisely interested in financing business ideas. They typically invest in exchange for partial ownership of your business or other benefits.
- Venture Capital Investors: Venture capitalists are like angel investors, but they will invest in established companies that show good performance and of course want to grow.
- crowdfunding: It’s popular for a reason; with a good idea and enough work you can attract funds for anything.
- Loans from the government or private banks: They are on hand for any financing need.
Conclusion.
Creating a business with little money is possible. Many leaders have achieved it, so you can too.
It is vital that you change your mentality and break down all the excuses that keep you from creating a business and fighting for your financial independence.
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
