How to Start a Business When You Have No Money

I was recently asked by someone, “How do I start a business when I have no money?”  I didn’t answer right away.  Instead, I asked some probing questions to determining the person’s readiness to start a business.  After hearing her answers,   I promised  that I would get back to her with some resources.

After thinking about this question, I’ve come up with the answer.

The answer is: You Can’t!!!  It’s Impossible!!!

You’re gonna have to pay for something.

Here’s the deal.  No matter what type of business you decide to start, there will have some costs associated with it. There’s always gonna be costs for:

Marketing

Equipment and Supplies

Business licensing

Establishing your business name

Systems

Professional Development

Insurance

Legal Counsel and Paperwork

Those are just a few line items.  I think the question “How do I start a business when I have no money?” really opens the door to more appropriate questions.

Such as:

“What are the start up costs associated with the type of business I want to start?”

“How much money do I have now?”

“Am I current on my household bills and other fiscal responsibilities?”

“Do I have good credit?”

“Where could I get money from if I needed to?”

And the BIG ONE:

“What am I willing to sacrifice to fund my business dream?”

These are important questions.  The word entrepreneur means undertaking.  Starting a business is a serious undertaking.  You put your all into it, and that includes your money. 

If you’re not on good financial ground, my advice is to clear up those matters first.  I know from experience how hard it can be when you don’t have money saved up when something goes wrong, or when you need something for the business and your credit just won’t get it.

Look at the current financial state you’re in.  What are you willing to do to finance your own dream?

Do you have items such as purses, shoes, appliances, you could sell?

Could you get a part time job and use that money toward the business? 

Can friends or family invest in your dream?

Can you barter with someone to get items you need for your business?

If you’re thinking about starting a business, but your funds are limited you should:

1.    Change your mindset- Go into it knowing that you’ll have to invest some money.

2.    Assess your situation- Find out what you’ll need for the business and how much each item will cost.  These are your start up costs. Here’s a start-up budget template from SCORE.gov. https://www.score.org/resource/start-expenses

3.    Assess your situation- Look around at what you already have or what you have access to that you can use in your business.

4.    Look for money in every place! - Do some research.  See if you can find organizations that help small businesses.  What personal items can you sell? What can you do toward your own cause?

5.    Plan it out- Develop a plan to get the items you need. Even if it’s one item at a time.

I will never say to someone “Don’t start that business.”  Your dream is not impossible.  You just have to plan and prepare for it. Starting a business will take your time, talent, and resources.  Find out what you’ll need, how much it will cost, and then… be about the business of finding ways you can make it happen.

Need some support to make your dream happen?  Connect with me in my Facebook Community, Reinvent YoUniversity.  We'd love to help you "Reinvent Your Reality".