“Is it possible to start a business with little or no money? And which business should I start with the money I have?”
Over the last few weeks, I’ve seen this question in a several formats on some Facebook forums.
There have been different responses with some people chipping in ideas and others marketing their goods and services to those who are looking for business ideas.
The more money you say you have, the bigger the ideas being offered, and the more expensive the stuff being marketed to you.
One thing you need to realize when starting a business is that when you don’t know what you want, you will end up losing money, time and energy.
You’ll also find people out there who are waiting to part you from your money!
Below is a list of questions to help you identify the ideal business for you and start the business with little or no money.
1. What do you like?
What are your hobbies or personal interests? These can easily be turned into a business that you start from home.
For example, do you love shopping for unique home accessories? Do people compliment you when they visit your home and see these unique accessories?
Then you can start buying for yourself and for selling. Each time someone comes to your home and is wowed by your style, just tell them that you’re now doing this as a business and ask if they would like some for their home.
Asking for the sale may not be easy the first time, but you’ll get better with practice and as you sell more.
2. What experience or knowledge do you have?
Your training and work experience can easily be turned into a side or full-time business.
For example, an accountant can work part-time for 2 hours a week each in 5 small businesses.
This is something I keep talking about to accountants because small business owners really mess up their finances by not having expert help.
Many will not mind parting with some money for a part-time accountant because they cannot afford or may not need a full-time accountant now.
Any training you have can be turned into a business, but you have to really like what you do to avoid creating another tedious job for yourself.
3. Can these be turned into a business?
Is it possible to turn the hobbies, interests, skills, experience or knowledge in #1 and #2 above into a business?
It’s one thing to have something you think people will want to buy, and another to actually be able to sell it. Being good at making or doing something will not necessarily translate into money.
Find out whether people need it and are willing and able to buy it by conducting a simple market research with your potential customers.
Get feedback from these people and use the feedback to match what you’re offering to what the market needs.
4. Will you need staff?
When you have little or no money, then it makes sense to start very lean when it comes to staffing.
If you need outside help, find out where you can outsource work instead of hiring people full-time.
If your business needs staff from the beginning, you may need to look for more funding and this will delay your starting date.
5. How much marketing is required?
How will your potential customers know that you exist?
What marketing methods will you start with – those that are affordable and easy to use?
How will you turn your marketing into actual sales?
Marketing is the lifeline of business and you cannot avoid it.
Some people get beginners luck and make money from the word go. Generally, this doesn’t last long and you’ll need marketing when beginners luck runs out.
6. How much money do you need to get the business up and running?
There are some costs that you cannot avoid at startup, no matter how small your business is.
Find out how much it will cost to:
- Register the business.
- Get permits for conducting the business (these vary for different counties and industries).
- Have an office address (e.g. a business centre address, P.O. Box – not necessarily a physical location)
- Set up and run a business account in your local bank.
- Make your products (if you’re selling goods).
- Get your first client (if you’re selling a service).
- Create business cards and conduct initial marketing.
- Have a simple online presence.
- Pay overheads for the first 6 months (overheads are expenses that have to be paid whether you make money or not).
- Take care of your personal expenses for the first 6 months.
7. Do you have a business plan?
Once you know how much it will cost to get the business up, you’ll need to create a plan for meeting these costs while at the same time making a profit.
Most startups miss out on this step, which leads to disaster in the long-term.
Your business plan is a living document and you’ll be editing it as you gain more information, knowledge and experience in the business.
Start simple and grow your plan one customer at a time.
When you’re starting out, your plan will be more of guesswork. Update it each quarter so that by the end of the first year, you have an accurate picture to base your 2nd year projections on.
It’s better to start with a 1-page plan than none at all, and you can create this using Patsula Media’s template on www.patsulamedia.com.
Is it possible to start a business with little or no money?
My answer is: Yes it is. In fact I would highly recommend it if this is the first time you’re getting into business, or if you’ve failed in business before.
However, keep in mind that having a marketable hobby, interest or skill is just one part of starting a business. Success in business depends on you making more money than the expenses you incur.
Don’t let lack of funds stop you from starting. Most of the large corporations we see today started with very little money by the founders and a lot of hard work, focus, clarity, determination, persistence and learning on the job.
What’s your next step?
If you’re ready to start a business and don’t want to take too long getting things up and running, get up a copy of my eBook 12 Weeks to Startup: How to Turn Your Skills, Talents, Knowledge and Experiences into a Business.
This eBook is a step-by-step plan to help you start a business with little or no money. These steps are broken down into easy to follow weekly actions. It will help you identify the perfect business for you, find out whether this business is marketable, identify your ideal customers, and start making sales within 3-4 months. Order your copy here.
(Image credit Stuart Miles at Free Digital Photos)
