Back in school, my economics books taught me that the four factors of production are Land, Labor, Capital and Entrepreneurship. An enterprise cannot make money in the absence of any of these factors. But the most important factor, which is responsible for the proper functioning of the others is the ‘entrepreneur’ – he holds the power to mould the other factors accordingly, for the benefit of his enterprise. An entrepreneur turns his dream into a vision; aspiring to become an entrepreneur is what an infinite number of people do, yet only a few risk-takers implement their thoughts. If you’re an entrepreneur who has the qualities to become a leader, but lack capital, then you can stop worrying now. There are ample schemes for you to utilize and give your ideas a platform to build upon. Here are a few techniques for entrepreneurs on how to start your own business with no money.
- Use your existing resources to the fullest
Obviously, you know starting your own business with no money is no simple task. Most would quit the moment they realize that they have absolutely no funding for their business idea. Then, you have to take a SWOT analysis of your idea. A SWOT analysis will include researching the Strengths, Weaknesses, Opportunities and Threats that your business will have. You need to sincerely jot down the FOP (factors of production) of your business which is already accessible to you.
If you have a job, then do not quit it. It is your guaranteed source of income whose part you can further use for your new startup. You can use your house as your home business office and your contacts with useful people; to establish a foundation of your business. Make sure you are aware of even the smallest of your resources and you optimize their utility by using them to the fullest.
- Selling services can be more rational than selling commodities
Starting your own business with no money eliminates your opportunity to invest huge amounts on raw materials to create goods. However, if you’re planning on selling services than commodities, then you would not require much initial funding to start away with. You can put your skills and talents into the use for your customers and serve them. The better your service would be, the faster would your company gain fame. The only thing you would need to invest is your time. You can cook, deliver, paint, stitch or baby-sit for your customers. Few services like writing, accounting, and counseling can be offered to the customers online. Initially, you might not need an office to provide such services. Once you start making money, you can plan to expand your business and sell products as well.
- Enjoy benefits of free advertising and marketing
Start your own business with no money wisely. You got to make sure that the people who would demand your products or services are aware of your existence in the market. You do not have to print banners or record advertisements for broadcasting. Without hurting your pocket, you can post free advertisements and market your goods and services online. From promoting your business on social networking sites like Facebook and Twitter to sending newsletters through emails to your targeted audience, you can effortlessly spread the name of your business. Digital marketing is one part of the business strategy which is conducted in the same matter everywhere; from new startups to MNCs.
- Watch out for alternatives of land and labor
Stop racking your brain by over-thinking, “How can I start my own business with no money, land or labor?” Think of the alternatives of these factors which can cater your requirements. How about making a website for your business which will act like the virtual showroom of your products and services. You can hire unpaid interns and take their help to grow your business while they can learn from you. You can also work from home and ask your friends and family to help you with your startup.
- Sales before launch
The initial stage when you start your own business with no money is very important. Before you launch your product or service officially, serve a few of your customers for free. Make them try your product or service so that they can spread the name of your business among their peer groups and families. This is a traditional and an effective manner of marketing before launch will never fails. The customers who have used your free products will spread a word about your brand to others and slowly a lot of people will get to know about your business.
- Startup Grants or Funds
In many countries the government offers grants or rewards to young entrepreneurs who lack money to begin their startups. However not all startups who apply for these grants get it. The US government gives an adequate amount of grants to promising entrepreneurs under the Small Business Innovation Research (SBIR) program of US SBA (Small Business Administration).
To know more about startup grants, you can also read-
If grants do not work out for you, you might approach financial institutions like banks for loans and funds. If you’re idea is new and appealing, you loan can get sanctioned.
Entrepreneurs, now you can stop worrying about how to start your own business with no money. Follow these guidelines, be confident and positive and start your business.