So, you want a small business. People often have brilliant business ideas, but don’t have the capital to act on them. However, this doesn’t mean your dream of becoming a business owner goes down the drain. The good news is there are plenty of ways to start a small business with little to no capital. Here are some ways to make your dream a reality and turn that idea into profit.
A 5 Step Overview on How to Start a Small Business
1. Focus on what you really want
Many of those who want to start a small business have so many ideas that they find it hard to focus on what really matters. Or they realize their tech idea can be applied to many areas. However, to succeed you need to learn to trim it down and zero in on a single idea first.
Once you achieve profitable growth in one area, you can cover more ground. It is important to take things one at a time and focus on the execution. Taking action and making things happen are what distinguish the business owners from everyone else.
2. Draft a simple business plan
We’re not talking about a full-fledged, thick, hardbound business plan here. All you need is a simple, straightforward guide to keep you on the right track.
Identify what your mission and vision is, what your objectives are, and what your strategies to achieve those objectives are. Carefully consider your costs, and make sure you can make a profit. Then map out your action plan and get to work.
3. Get funding
If we’re talking about how to start a small business with no money, then this is where creativity and resourcefulness come in handy. The beauty of today’s business world is that there is a lot you can do with very little money. There are also many ways to get funded.
For one, you can save your own seed money. There is nothing like having your own money invested in the business to help you focus on profitable sales.
The Small Business Administration can be a source of loans and other forms of assistance to small business owners and startup companies. If you are qualified, you can also get a credit line. For example, the American Express Plum Card extends its payment for up to 60 days instead of 30 days. You can also approach banks as well as other financial institutions for private funding. However, you need to have your personal finances in good shape to qualify. If you do opt for a credit line or private funding, remember to keep your credit at a minimum. Otherwise, you may find yourself deep in debt.
Various crowdfunding strategies like Kickstarter have helped countless startups, and is a great way to help test if there is a market for your product or service. Once you have established yourself and your idea’s potential, venture capital may become an option.
4. Utilize low-cost services
When you are first starting out or testing your idea, there are many low-cost options to help you get started. Freelance help can be inexpensive (but be careful – many people claim abilities they don’t actually have). Your first website can be a template. You can start with a simple email program, etc. Google docs are free, Gmail is free, and there are many low-cost tools. Until you have proven your business model, keeping your costs as low as possible is essential. You don’t need an office, furniture, and a large team when you are just starting out.
5. Sweat it out
No successful business made it without hard work. Like the old saying goes, it may take years to be an overnight success. Even if you have a significant amount of funding, there is usually a great deal of time, effort, and resilience required to succeed.
Starting your own business is a lot of work, but in our opinion, the only true financial security is that which you create for yourself.