Debt is not the only way to create a business and here we will teach you how to start a business without asking for a loan.
Starting a business almost always presents the following two scenarios. In the first, we have a person who has enough capital to invest; but he doesn’t have an idea in which to use his money.
In the second scenario, we have another entrepreneur who has an excellent idea, knows what steps to follow; but he does not have capital to start his business model.
Ideally, these two entrepreneurs would meet and form a partnership. But since we cannot leave everything to fate or wait for a miracle to happen, it is necessary that you take action and start working whether you have money or not.
Millions of companies are being created around the world, and many of them need start-up capital to start their business. Whether in raw material, equipment, employees, space; among other.
(We recommend reading 51 easy-to-start profitable businesses)
Unfortunately, these costs can lead to high debt, especially in the manufacturing and retail sectors.
Would you like to start a business full of debt or would you like to know how to start a business without taking out a loan?
You can use your savings, even acquire funds through your family and friends. There are different ways by which you can ensure that your idea begins to develop without the need to acquire bank loans.
Find below some methods to know how to start a business without asking for a loan.
How to start a business without asking for a loan.
1. Acquire capital with crowdfunding.
Currently there are several online platforms that offer you the option of raising capital from groups of investors. Instead of looking for the funds you need from a single source, you will raise money from a pool of investors interested in seeing your idea grow.
If you want to know more about Crowdfunding, we have written an article with details about the platforms that are helping thousands of entrepreneurs to create a business. You can read it by clicking here. It is an excellent opportunity.
2. Start with the bare minimum.
Another strategy to know how to start a business without asking for a loan is to start with the minimum.
This applies to companies that start with a loan and to those that do not. Make sure you start by taking small steps, measuring risk and working to gain momentum. (Do you know what a PMV (Minimum Viable Product) is? If not, we recommend you learn more about the Business Model)
Do not start renting an office, it is an unnecessary expense; at least at the beginning. If you need staff, try to hire freelancers. If you want to sell a product, start doing it only online, do not think of a store from the beginning. Don’t pay for an expensive website, you can make it yourself by following this guide.
At first you may not just be the owner of the business. You will also be the accountant, the seller, and even the messenger.
3. Start working part time on your business idea.
Working on your business idea doesn’t mean you have to quit your job, at least not at first. Some entrepreneurs even use their salary to finance their venture.
Don’t think it’s impossible. It just requires a little dedication and perseverance. It is possible that when you get home from work, all you want to do is relax. But if you really have an idea and want to carry it out, you will realize that between 8pm and 12am you can do a lot of things.
Even weekends are valuable time. Sacrificing some is not going to harm you and it will bring you a lot of satisfaction.
Do not forget to purchase our book “How to create a company while you work” by clicking here.
4. Seek capital with the closest people.
This is a hard task, it will surely be uncomfortable and you will receive many “no”, “I would like to help you but I don’t have”, some “yes” not very convinced, and other people will try to avoid you because they already know that you need something.
It is not necessary to judge, in fact they are attitudes to understand, possibly you would react in the same way.
However, if you have a well-structured business idea, with planning, projections, etc.; the person you are asking for money will see a real opportunity and will not hesitate to help you. Do not forget to purchase the book, “Your business model in 7 days” to present your business idea and get the money you need.
5. Reinvest the profits.
If you already have profits, congratulations!!! That means you started after all. But the hardest part comes next. The first profits are not to go out and celebrate.
You don’t know what will happen next month. You’re just getting started and the ground is still shaky. That is why it is recommended that you reinvest to grow.
It is the only way to stay away from bank loans.
And remember that if you are really interested in creating your own business, you can purchase 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.
