How To Start Up A Business With No Money

In order to start up a business with no money, you first need to find a trade that will require very little to none initial investment. Then, you must learn how to use the tools, find ways to promote yourself, and eventually, expand your business.

Discover the depth of these steps in the following article, as we consider how to start up a business with little to no money.

1. Start by finding a low cost business idea

In the process of coming up with an idea, it's important to be open-minded. Put aside any prejudice, or pride, and focus on the goal you are aiming: making money. Here is a table showing ideas of low cost businesses and their estimated cost.

Something that will definitely help you is to be specific. Don't focus on general terms of service. You can't be just a teacher, nor a cleaner. You must be a Spanish teacher, or a window cleaner.

The more specialized you are, the more customers your will get.

2. Make a business plan

Before you start buying materials, tools, and preparing to approach potential customers, it is mandatory that you make a business plan, even if you have no money. Creating a business plan allows you to focus where it matters. Believe it or not, a business plan will save you from many headaches. Things included in a business plan:

1. Business Concept:
   • What is your business about? What does the identifying logo of the company look like? What are the identifying colors of the company?
     
2. Target Market:
   • Who and who are your potential customers? Where do I want to have my customers? How much do I want them to spend? Can they afford it? Will they value it?
     
3. Value Proposition:
   • What makes you different from your competitors? Is it just the price? Or of you extra value? DO you have more qualifications than your competitors?
     
4. Marketing Approach:
   • How will you sell your product or service? Door to door? Phone call? Internet ads? What ways of advertising might be illegal in my area?
     
5. Financial Outlook:
   • Including the initial costs, create an income/expenses estimation.
     
6. Goals:
   • "five new customers a month", "250$ extra this week","a positive review every week"...
     
7. Risks and Mitigation:
   • Identify potential challenges and find solutions for them.

After considering all the different areas involved in the business creation, such as finance, marketing, goals, and risks, you are ready to start your business.

3. Validate your business idea

Once the business plan is approved, it's the moment to validate it.

In order to do that, you have to do your best to find your first customers. Since you have no money, you can't invest in creating a logo, or adding it to a uniform. But you could visit places where your services might be needed, or go from door to door if you offer home services.

When you start doing those initial jobs, seek as much feedback as possible. Feel free to ask questions about the things they liked, what they disliked, and how the service could be improved, among other things.

Take note of those comments and implement them into practice if feasible, as they will help you build a customer-oriented business.

4. Spread the word

Once the business idea is validated and you are getting your first customers, it is time to speak openly to your relatives, neighbors and friends about your new project.

Spread the word that you've started a business and are ready to work in your area of expertise. Let the people around you know. This way, if someone hears about a specific job demand, they'll know who to recommend.

As soon as possible, reach out to institutions, companies, and local businesses to offer your services. This includes even those that provide similar services, as you can potentially work as an assistant alongside them.

5. Keep reinvesting

From the very moment you start making money, make sure you reinvest it in your growing business. Take note of things you need to pay for as soon as possible:

• Logo and brand design: if you haven't been able to pay for it yet, pay a designer to create a logo that you can add to business cards, uniforms, and so on. Invest in creating a strong brand.
  
• Business Cards: you need a business card in order to reach out to more people, and leave a physical reminder of your visit or offer.
  
• Uniform: your company won't look professional if you don't look professional. Make sure that colors, styles, and designs match your logo and your brand identity.
  
• Marketing: investing in creating a website, flyers, ads that will be shown locally.
  
• Tools: reinvesting your income in buying more efficient, modern tools will help you develop the same job quicker and with improved results.

A piece of advice

Creating a business is a not a quick, easy thing. Making a living will require hard work, constant effort and good planning.

Some recommendations we want to offer you if you don't have money but still want to start a business:

• If you have a job, don't quit until your side hustle has become a working, functional business. Putting too much trust in your new project may leave you broken.
  
• Stay humble, do not forget that every project has a beginning. Pretending will only bring trouble, and usually it's a waste of time, energy and resources. Take one step at a time.
  
• Be resourceful. Find ways to get free resources (government programs, banks, business associations), and use them to grow your company.
  
• Never stop validating your business. If you want your newborn company to last long, keep on checking on it, keep on asking for feedback, keep on improving.

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