Wednesday, December 8, 2021

Starting a Business with no Savings – 5 Actionable Tips

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Many working people come up with interesting business ideas. They don’t develop these concepts because they usually lack the money and organization.

Not having enough savings or not knowing how business financing works are common reasons for giving up.

Still, it’s not impossible to start a business with no savings. It might take more time and planning, though.

In this article, we’ll explain what you can do to start a business with little or no savings.

1)  Validate the business idea/product

When you think you have a potentially profitable business idea, feel the market pulse first.

You might not be impartial because it’s your idea or product.

Conduct a survey to see what people think about this whole thing. You can target people on Facebook or LinkedIn and ask them to answer your questions.

If you’re planning to offer online services, let the potential audience try them and send you feedback.

If you want to start selling one or a group of tangible products, send them several samples. They can test those items in person and give you feedback.

Also, you can pay online users to test your products and services, but that’s something to think about later product series, once you make some money.

2) Start a crowdfunding campaign

Starting a crowdfunding campaign is beneficial for new business for two reasons.

On the one hand, you can raise enough money to get your business going.

On the other hand, it’s a sort of reality check. If people don’t support your idea or product financially, it means that you should adapt the item in question or try something else.

There are various websites for crowdfunding campaigns. You should do your homework and check out which of them suit your financial and business needs.

Also, bear in mind that these websites accept different payment methods. Make sure that you can access the money you’ve collected through crowdfunding.

3) Apply for government loans

Different governments give different grants and loans.

First, let’s clarify the difference between these two.

A grant is free financial support that a federal or local government gives to strategically important businesses. You don’t have to return the money they give you, but it’s more difficult to get a grant than a loan. Your business idea needs to be beneficial to the community or be useful in any other way. For instance, a business producing green energy could be eligible for a business grant.

Contrary to that, a loan is a credit that you get from the government to start your business. It helps you start your business operations and return this money in monthly instalments over the agreed time.

Government loans are usually less expensive than commercial, bank loans. Still, it’s more difficult to qualify for them.

Learn more about the conditions for governments grants and loans on the website of the US federal government.

4) Keep the costs low

Fresh business owners with no money need be careful about every cent they spend for business.

Even when money starts pouring in, they still must remain extremely disciplined with expenditure.

Here are some tips on what you can do to keep the costs low:

  • Use second-hand equipment and furniture. You don’t need cutting-edge computers and other devices for your business unless you’re a top-notch software developer. Visit Craigslist and other similar websites to find used computers, monitors, printers, coffee machines, and other devices you might need for your office.
  • Don’t rent until you can afford it. Paying the rent and all overhead costs is too much for a new business owner with little or no money. So, don’t rent an office until you really need it. You can turn one room in your home into an office, put your equipment there and start working. If you don’t have a spare room, go to a coworking space and work from there. After all, many wealthy people started their business journey from their garage or living room.
  • Don’t hire until it’s necessary. Running your own business brings more obligations. It also brings the freedom you’ve never had before. Now you can put into practice every single thing that crosses your mind. That’s why you should postpone hiring employees until it’s really necessary. Work on your own to develop the best ideas that will put the business on the right course. You won’t spend money on workers’ salaries, plus, you’ll be the only in charge. Additional two cents: find a few freelancers who will handle small, mundane business tasks so you can deal with the core ones.

5) Promote your business

The great thing about launching a business today with limited or no assets is that there are many free marketing features out there.

That way, you can promote your business without spending a fortune on advertising.

For starters, start a business page on Facebook, Twitter, and Instagram. See how each of these networks fits into your business goals and focus on the one that brings most prospects. You can use social networks for the market survey we’ve talked about above, as well.

Moreover, you’ll need a functional and organized website. As the experts from a web design company in Houston, the business website should help visitors understand what you do in a few seconds. Therefore, it has to be simple, but informative. Also, enrich it with authentic photos and videos, rather than generic stock photos.

Finally, register your venture for Google My Business so that everybody can see it on Google Maps. It will enable users leave their impressions about your business, as well.

All these elements will add to your online promotion and enhanced popularity.

Starting a business is never a simple process. Doing it without too many assets is even more complicated.

However, if you think your business idea is valuable, don’t stall. Contact the local business administration to ask for loans and grants and try to raise money through crowdfunding.

Check out what your target audience thinks about your ideas or products. Control your expenses to make profits. Spread the word about your new business on the Internet, as well.

All these steps will help you ensure slow but gradual growth from day one.

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