Can an entrepreneur start a business with low or no funds?
Yes, it can be done. As a matter of fact, there are many successful businesses that were started with virtually nothing.
- Lynda – It all came when Lynda Weinman was teaching web design. She developed an extensive library of teaching materials and Lynda was born. Seeing the possibilities, Linkedin paid $1.5 Billion to buy Lynda.
- John Paul DeJoria – This entrepreneur was surviving on odd jobs when he started working in hair care. He met Paul Mitchell and together, they borrowed $700 to start a business called John Paul Mitchell Systems. John Paul was founder and co-founder of other businesses and is now worth over $3 Billion.
- Kevin Plank – This man was at an edge and took a chance. He had saved $20,000 over the years and maxed out his credit cards to start Under Armour signature clothing. Under Armour is now valued at Billions.
I would go so far to say that when entrepreneurs start a business with little funds, they are more diligent and budget minded.
Here are 6 tips on starting a business with low funds.
Starting A Business With Low Funds #1: Don’t Quit Your Day Job Yet
It will require more hours, but when you are just getting started with your business, it takes time to become profitable enough to pay the bills and put food on the table.
I advise you to keep working your present job and work your business on your off hours. By doing so, you will have that steady flow of cash to help you manage.
Starting A Business With Low Funds #2: Build Your Business Around Your Expertise
When you are starting a business with low funds, it is wise to choose a business system designed around something you are an expert in. Sure, maybe you have an idea for a business that is not in your expert “zone;” you will have another chance to build that, but due to the fact that you have low funding resources, you are best off choosing a business that you know a lot about. This will keep you from spending money on other experts.
Starting A Business With Low Funds #3: Be A One Man/Woman Show
While I do recommend delegating and outsourcing, there are costs involved with doing so.
When starting a business with low funds, you will be forced to do it yourself… So get ready, set, go:
- social media management
Starting A Business With Low Funds #4: Create A Service Intertwined With Your Business To Generate Cash Flow
Let’s be honest here… A product based business will require some capital. But a service does not require that funding.
I suggest you find a way to integrate a service of some type to generate cash that can then be used to make your product become a success.
Just an example… Let’s say you have an idea for a product to lose weight. Before you get that product “rolling,” you could offer weight loss consultation, an eBook or coaching sessions.
All of those do not require capital and the profits can be put back in to get your product out to the public.
Starting A Business With Low Funds #5: You Do Not Need To Look Like A Huge Business To Start
Sure, you probably want a fancy logo; you want to determine if your business should be an LLC, C Corporation, S Corporation, etc…
You want to have a fancy desk and office space…
Yes, you want to be the perfect picture of an entrepreneur with a successful business, but all of that costs time and money.
My advice… Skip all that stuff until profits are rolling in. Just get the business going and deal with the “decorations” at a later time when you have revenues flowing.
Starting A Business With Low Funds #6: Some Low Cost Business Ideas
For the last tip on this post, I am just going to throw out some business ideas that can be started with low funds…
- Personal Assistant/Concierge Services
- Online Affiliate Marketing
- Auto Detailing
- Interior Design
- Health And Wellness Coach
- Freelance Your Skills
- Dog Sitting
Just use your creativity and consider the needs of your neighbors.
There are people making huge profits with little or no capital from their own pockets. I have seen entrepreneurs purchase 3, 4 or 5 cases of water for $2.99 and sell each bottle for $1 to thirsty people.
I have witnessed people buying hot dogs and buns on sale and selling them for huge profits to hungry people.
There are ample ways to get started…
Just take a look at my life and how I started my entrepreneur journey. It is in my book, To The Top!
If you have an entrepreneur mindset, you can sell ice water to Eskimos and charcoal to the Devil.
I hope this helps you. If you have any questions, please post them below.
Thank you and have a great day!