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How To Start A Small Business With No Money

  • May 30, 2020

If you're reading this, I'm earning money. Thanks for helping to feed my family. Please see our disclosure for more information. Also, any advice provided is for informational purposes only. I'm not a CPA, lawyer, or doctor, although my parents wanted me to be all three. So, talk to a professional before acting on anything you read below.

How To Start A Small Business With No Money

A lot of people are looking for ways to start a small business without money, but is it really possible? We can all agree that if you want to start a business, you need to have some capital. It is not possible to run a business without money involved.

You would eventually spend your own money on the business, but there are other ways on how you can fund your small business without spending your own money.

Getting a cash advance loan might be a good solution, but you will have to pay the loan every month so it is still considered as spending your own money. We have a few simple tips that you can follow if you want to start a business without spending your money.

Related: 4 Best Tips To Help You Start A Small Business Online

Use Your Skills and Knowledge as Bargaining Chips

You want to start a business without money so you need to have the right set of skills and ample knowledge on the type of business that you want to pursue. The goal is to look for investors and financiers who can spend money on your business.

Before you can use your skills and knowledge as bargaining chips, you should first identify all the things that you have which can be used as a bargaining chip.

  • Skills: What are your skills and what are the things you are good at? Are you a web designer or you have some background with SEO? Do you have any idea how to market products and services? All of these can be considered as skills so you need to identify them to persuade the investors to fund your business.
  • Experience: If you are a fresh graduate, it is pretty difficult to persuade investors to spend money on your business because they always look at results. If you can’t offer any assurance, they won’t even look at your business proposal. You should use your experience to attract investors.
  • Knowledge: Sometimes, knowing a lot of things about a certain niche can already capture the attention of the investors. If you have extensive knowledge about the business that you are planning to start, the investors will see it immediately. If they are certain that you know what you are doing, they will fund your small business.

You should remember that before you start a business, you should know what you are doing and you already have a concrete plan.

Use Your Connections

Since you already know what you have and you have an idea of what to offer, next is to use the connection that you’ve built over the years. They don’t have to be direct contact with an actual investor. If you know someone who can refer you to a person who is interested in investing in a small business, this is already a good start.

If you are still in the planning phase and you don’t have connections yet, you should start building a huge network. You can participate in business gatherings and try to be acquainted with people in the business industry, especially on the people who are currently in the same industry as the business that you want to establish.

Building connections is not only a good way to get funding because it also improves your knowledge of the business that you want to start.

Look for Business that Don’t Require Capital

Yes, there are a lot of ways for you to earn money without any capital. If the small business that you are planning to establish needs a huge capital, the best thing to do is to earn the money yourself.

We will list down some of the business that you can start without spending money.

  • Content Provider: If you love to write articles, edit photos and videos, and more, providing content for businesses would be very profitable. Although it takes time to create content for businesses, you can earn a significant amount of money from this.
  • Affiliate Marketing: If you are a marketing expert, affiliate marketing will surely be one of the best ways for you to earn money. Basically, you don’t need capital for this because you just need to sell the products and services of other people. You earn money through commissions and you also earn money for every action the potential buyer makes.
  • Dropshipping: This is like affiliate marketing, but instead of making commissions from every item or service you sell, you add a markup on the products. You don’t have any inventory of the products that you are selling. You just have to point the buyers to the suppliers and your work is done.
  • Consulting Services: If you have a lot of knowledge and experience in a certain niche, you should offer consulting services and help up-and-coming professionals and start-up business owners. They would pay you for your expertise.

Be Socially Active and Build up your Audience

In a sense, being socially active will not give you the funds for your small business, but getting some followers on your social media accounts matters.

Being active socially will open up a lot of opportunities for you. It is possible to meet potential investors online, especially if your endeavors are in line with what the investors want to do. If you become an influencer, you can use your popularity to get more funds for the business that you want.

If you successfully built an audience, you can opt for crowdfunding. You just have to explain where the money will be used and your followers will not hesitate to help you with what you are trying to do. Don’t be afraid because you are not trying to manipulate them. Most people feel good about helping others and you just have to give them something to believe in. As long as you are honest, they won’t hesitate to help you.

Conclusion

There are so many ways to get started with your small business even if you don’t have huge capital. As long as you fully committed to your small business and you want to push through, you can always find a way to get the funding that you need.

Author’s Bio

Jim Hughes is a content marketer who has significant experience covering technology, finance, economics, and business topics for about 3 years. At the moment he works as content manager in OpenCashAdvance.com

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