How to Start a Business with No Money

Beginning a business with restricted capital requires a change in attitude. 

Customarily we are adapted to start the method involved with searching for new business openings by inquiring: 

Then, we build up an objective to make an endeavor that will fill that hole. 

We consider the assets important to make our objective reality and go out looking for those assets. 

We compose a field-tested strategy and present it to expected agents with the guarantee of a profit from the venture. 

Expect you are hosting a couple of companions for an easygoing plunk-down supper on a Saturday evening. 

In planning for this social affair, you may invest some energy in pondering who is coming and what food they like. 

You may even call them up before the week to see whether there is anything they don't eat and if they have any inclinations. 

Having assembled this data you will settle on a menu, go to a formula book to perceive what fixings you want, build a shopping rundown and purchase the merchandise.

On the off chance that the agents like us and like our thought, they give us the cash flow to begin the business. If not, we are stuck.

Developing the alternative entrepreneurial mindset

Here are some principles and guidelines that will provide you with a better chance of effectively launching a business with little or no capital.

1. Start with what you have

looking to start a new business and take stock of what you have at your disposal. 

1.     Skills – what can you do? 

2.     Experience – what have you done in the past? 

3.     Knowledge – what do you know? 

4.     Tangible resources – what do you own and what do you have access to?

2. Take into account who you know

What you have should be joined with who you know for it to have genuine power. 

Check out the connections you have with others, map out your organization of associations, and consider how your associations could empower you to utilize what you have all the more successfully. 

Sarasvathy calls attention to that the elective method for adventure creation advocates sewing together associations to make new business sectors. 

Connections, especially value organizations, drive the shape and direction of the new pursuit.

3. Invest what you can afford to lose

There is a major distinction in your attitude if you start with the point of view that I am contributing to this sum and I expect a 30% return versus I can bear to lose this much, thusly I will place it into the business and check whether I can make it work. 

If you have just placed in what you can bear to lose, you keep up with adaptability in the business and limit stress in overseeing it. 

In case you are simply ready to contribute at the point when you expect that you can get a particular return.

There is a solid possibility that you may never take the jump and dispatch the business you generally longed for buying.

4. Experiment and adapt

With this mindset, flexibility and adaptability are a competitive advantage. 

 

You succeed not by becoming too fixated on a single goal or outcome but by being responsive to changes in the environment. 

 

Existing firms typically take longer to adapt than new firms because they have more incentive for things to remain the same and they have established routines and practices that reinforce the status quo.

Types of new businesses to start with limited capital 

Service businesses depend on the skill and time of the person starting the business. 

 

Such a person can make their skill available to others with relatively little upfront investment. 

 

To start a service business you merely need the tools of your trade.

 

A consultant may require a computer, a handyman some tools, and a dressmaker a sewing machine. 

 

With these tools on hand, you can use your contacts to start selling your service. 

 

Events-based businesses are a little more complex but can still be started with limited capital (see the March edition of Entrepreneur for a feature on events-based businesses). 

 

Events-based businesses include ventures that put on sports events, expos, and concerts. 

 

The advantage of such businesses is that with effective marketing, you can sell the tickets before you incur the major costs, limiting the amount of capital required to keep the venture afloat.

 

Performance-based businesses depend on the ability of entrepreneurs to perform and to pull together other people who can enhance the performance.

The downside of the low capital approach

Although there are many benefits to starting your entrepreneurial journey by ask “what do I have and who do I know?” 

 

there are also downsides to this approach which may require remedial action to overcome the negative consequences.

What makes a business successful

Company culture. Culture is defined as the "integrated pattern of human knowledge, belief,  and behavior that depends upon man's capacity for learning and transmitting knowledge to succeeding generations.

 

" For successful companies, culture is about attracting and hiring the people who would be most successful in that specific organization.

 

Customer service. Simply defined, customer service means taking care of your customers.

 

Attitude. As the owner of the company, you must have a positive attitude and accept 100 percent of the responsibility for the results of your business. 

 

When you accept responsibility, you can act to make the necessary changes to accomplish the desired results. 

 

Business strategy. A complex strategy or business plan isn't necessary to achieve success. A simple one-page document will do, but it should be well thought out and well-executed. 

 

Discipline. Discipline is all about executing the strategies and then staying the course.

 

Risk. Successful business owners aren't afraid to take calculated risks with clear outcomes in mind. 

 

Financial roadmap. An important attribute is the creation of a financial roadmap and budget- -and then having the discipline to follow it. 

 

Business processes. Another frequently credited attribute of success is the streamlining of business processes.

 

Information technology. While technology is important, it doesn't have to be complex or costly to be effective.

 

Sales. Every company's approach to sales is different. Some depend on building referral partnerships and strategic alliances, and this is the extent of their sales process.

 

Training. Because we live in a world of continuous change, it's more important than ever to implement a culture of continuous learning.

 

Team of advisors. Without exception, every successful business owner I've worked with has talked to about how having trusted advisors is necessary for success.

 

Work/life balance. Successful business owners understand that every person has just 1,440 minutes in any given day and how they spend this time directly impacts how effective they'll be in growing their businesses.