HOW TO START A BUSINESS WITH ALMOST ZERO NAIRA AND KOBO.
HOW TO START A BUSINESS WITH ZERO NAIRA AND KOBO.
Sometimes you can get started with little to no funding. I hear you cringe! See, starting a business with no money might initially seem like a silly idea, but it’s not impossible.
It’s true that to start and scale any business, you will need more than just extra cash flow. You’ll likely need partners, investors and a solid plan for how you’re going to use your new business funds to grow it.
This is the drill, when you start; you should start out small. Even better: you can start out as small as you like.
Like now, if your plan is to open up a storefront where you sell your hand-crafted wares, you can always start by selling them to friends and families first. You can build up a reputation and get initial feedback. Then, you can sell them on a third-party website online. After that, you can move on to hosting your own site and store. You get the idea.
BUT If you’re worried about how you can start a business with zero funds, then welcome because these few ideas will guide you on where you can start.
ASK YOURSELF WHAT YOU CAN DO OR GET FOR FREE
It’s easy to come up with a list of obstacles standing in the way of you and launching your business. It’s often harder to come up with a list of opportunities that are right in front of you. If the thought of starting a business with no money scares you, stop and reflect on what you can do without right now.
What’s essential to your business? Do you need the slick, custom-designed website when you’ve only perfected three items for your new store? Could you do with creating a Facebook page to promote your business locally, instead? Or, would it make more sense for you to post your products for sale on a site like Etsy? Would it make more sense for you to design your own marketing materials on Canva? Could you barter and trade your skills/products/resources with someone else in lieu of payment?
To say there are a lot of free resources on the web is an understatement. Make a list of what you need for your business and then research free alternatives on the web. It might take time, and perhaps even require you to pick up some online or digital skills, but you’ll save funds when you need them most.
BUILD UP SIX MONTHS’ WORTH OF SAVINGS FOR EXPENSES; If you can…
Admittedly, dipping into your small savings account isn’t the ideal situation. Yet, it is a very common practice among entrepreneurs. When designing your business plan, be frank with yourself about how much you’re spending and how much revenue you’ll likely bring in. Then, be realistic about how long it will take before you see a profit. Usually, it takes about at least six months before you start seeing any cash flowing in. Make it a goal to save at least six months’ worth of living expenses so you can devote yourself to your new business.
THEN, ASK YOUR FRIENDS AND FAMILY FOR EXTRA FUNDS
At least you have small goodwill, leverage on it. Remember, you’re not asking for charity. You’re not asking your friends and family to support your mad business idea. No, you’ve got a dream business you want to berth and your business plan is solid. You’ve crossed your t’s and dotted the i’s. Reason that you are looking to those closest to you when making your pitch. Your first to them. Use your friends and family as multi-layered resources.
Practice your sales pitch with them. Ask for their real feedback. And, when you are ready to launch your business, ask if they can help with a small loan to kickstart the business. Just be sure to get everything down in writing and when you’ll pay them back. You can even use a crowdfunding platform to encourage the people around you to encourage their networks to also pitch in.
DO APPLY FOR A SMALL BUSINESS LOAN WHEN YOU NEED EXTRA CASH
If you’re looking for more capital and have been operating on a shoestring budget, consider applying for a business loan. Banks and online lenders like FinTechs offer differing kinds of small business loans to customers looking for extra cash flow or investment funds. You can usually get more favorable terms with a traditional bank. Online lenders, however, are typically more lenient in their requirements. Just watch out for those with high interest rates.
But If you’re not looking for a lump sum loan amount, consider a business line of credit. This are like credit cards for your business. They’re good options for purchasing items on an as-needed basis.
LOOK TO SMALL BUSINESS GRANTS AND LOCAL FUNDING OPPORTUNITIES
Truthfully, Loans and other business grants are not always the easiest to find or get. But, once you’ve got your business up and running (no matter how small), you can begin searching in earnest for free cash. Always remember that grants will usually have specific application requirements. So long as you meet those, you’re in the running for a pot of cash that’s all yours for the taking. Start your search in government databases and always be sure to ask your local small business administration chapters like chambers of commerce for help.
FIND OUT ABOUT—AND WOO—POTENTIAL ANGEL INVESTORS
Lastly, we have some angel investors, and with good reason. They come into play when it’s time to scale your business beyond you, yourself, and the handful of loved ones who have bought in. The Angel investors are usually among the first people outside the company to invest in a business.
Also Note that unlike outside firms or other venture capitalists, the angel investors put down their own personal funds. They can also make for the best kind of mentors, since many are former/current entrepreneurs themselves.
Search and look for help where necessary. HKM BLUE INTEGRATED (hkmblueintegrated121@gmail – a business advisory firm can help here). Just like children, new businesses need utmost nurturing.
Start where you are, with what you have, with the people you are with… with the knowledge and passion you have…
Best of luck!
