Let’s set the scene, it’s 2009, just 2 years after the major crash – maybe only 1 depending on how you see it. Some guy, working for a photo sharing company, starts building a game in his spare time. In 2015, Marcus Persson, sold Minecraft to Microsoft for a mere $2.5 billion in CASH!
Did he have investors or capital? I don’t know everything about him, but I do know that he started that business in his spare time!
What about this one? Sometime before 1996, he was a student at the University Of Maryland, and started a seasonal business selling roses on Valentine’s Day. He made $3000 and used it to invest in a company which is ran from his grandmother’s home. By 2018, Kevin Plank was worth $2.1 Billion. He owns Under Armour.
I could go on and on. We all know the story of Apple – started in a garage!
So what can you do if you want to start a business with no money?
Well, that depends!
If you are planning a service based business or even a business that you create the product (like software), you really don’t need much capital to start.
If you are starting a brick and mortar or a product based company, then you will definitely need more seed money!
Let’s start with some universal truths:
- You will never succeed if you don’t start!
This is true for just about anything and everything in life. So I am happy that you have figure out what is stopping you or holding you back! Leading me to #2
- Figure out what is stopping you
Congratulations, you have already made it to this step since you said the reason is no money.
- Figure out exactly what you need to move on to the next step.
Ask yourself if this is truly the issue or if it’s an excuse. Let’s break it up a little.
Brick and Mortar Business or Physical Products
If you know that is definitely what business you want to start, meaning that you have done all of your homework, and know that it’s a viable product, then all you need is to get the money.
How can you do that?
- SAVE – Yes – Once you know how much money you need, you can set a new budget at home and start saving. You can get an extra job or do work on the side to speed it up.
- BORROW – You could ask a friend/family member to borrow the money. I would be super careful with this option. I actually recommend against it.
- LOAN – You could get a business loan. Again, you will need all of your information ready to present, including financial projections.
- PARTNER – You could get an investor or a partner to join you in the business. You need to do your homework with this one and definitely hire a lawyer before signing contracts.
- LEVERAGE – You could leverage other assets you have to get this started. Be careful and make sure you have done your homework!
- PIVOT – You can see if there is a less expensive way to start. For example, can it mobile? Can you start with one aspect of it? Can you start a service business selling someone else’s product until you have customers and income and then switch to your own product?
If you want to start a business and haven’t because of money, then you should be doing 1 of the 5 options above. Clearly some will take longer than others. But, you are in motion. You are taking progressive steps forward. Congratulations!! You are on your way.
Service Business
If you want to start a business and do not have your heart set on a brick and mortar or physical product for a particular reason, I highly recommend that you start a service business.
If your reason for not getting started is money, first, I would say that you need to revisit your reason and make sure it is a reason and not an excuse.
Getting into a service business can be done for next to nothing. You can build assets like a website as you go, but you do not need that to start. How?
- You can go to trade shows
- You can cold call – phone or in-person
- You can use social media
In a service-based business, you really just need you – and your clients. You just need to get them and then scale.
A service–based business relies heavily on your passion, skills and knowledge. So what do you have to offer?
