An additional income is always welcomed. But the question is how to make that income. By launching a business venture, your dream project. But do you have enough personal funds to pursue your dream of starting an enterprise? No Money or shortage of money is a major logistical hurdle when you want to start a business. However, if there is determination and willingness to put in enormous efforts, it’s entirely possible to start as well as grow an enterprise with almost no or not much financial investment.
Why An Enterprise Needs Money
The startup fee for every business is different. Therefore, before you start your business, you need to have an estimate of how much money is required for the following
Licenses and permits - This depends on the state and region in which you want to start your venture. You should find out about the paper work and registration formalities required to operate your business.
Supplies - Make a list of things that you require such as computer or any electronic device, or any kind of raw materials that’s required.
Office space - This is a major expense. Remember you cannot neglects expenses such as utility bills and Internet.
Legal fees - If you are consulting a legal advisor throughout the entire process of business development, you need to pay the lawyer.
Three Options to Look for To Build Your Business Without Investment
You have three options of starting your dream business with little investment.
Cut Down Your Needs
The first and foremost thing to do when you do not have enough funding for the business is to change your business model. See where you can reduce your requirements and needs. For instance, initially, you should consider working from home and if you are able to multitask, you can reduce the employee expenses by being the sole employee. This would be cheaper. However, you need to understand that there are a few expenses such as licensing and legal fees that cannot be foregone. According to the SBA, you can start your micro-businesses with less than $3,000.
Instead of plunging into a full-fledged business mode, start with a warmup mode. For instance, launch a blog, here talk about your experiences and subtly introduce your business ideas and what you plan to do. Also, start small by concentrating on one product or service. Though it reduces your scope, audience and profit, it will help you get a head-start. Once the business starts generating revenue, you can slowly invest and build the business piece by piece.
Receiving Funds From Outside Sources
Get the help of friends and family. They may be able to help you. Do not hesitate to ask them. Angel investors are on a look out for investing their funds in exchange for partial ownership. Take your ideas to them. Knock at the doors of the Small Business Administration in your region with your business proposal. They offer grants and loans that may aid you to kick start your startup. If you have a good credit history, you can open a line of credit with a bank in your area.
It’s a fact that capital is a major hurdle that one needs to overcome. But it can be overcome if you have a fail proof business plan, willingness to make an effort to work towards the business goal by starting small, and accommodating partners. These will help you start a business with little investment.