Say you would like to start a business, but find the prospect next to impossible because of the reason you'd like to start it in the first place – you have no money.
It may seem like an overwhelmingly difficult, or even impossible task, to start a company with little-to-no funds, but it is possible. Just like companies that start off with massive rounds of funding and find success, there are those that are sitting on huge reserves of cash early and never make the right moves, eventually fading into a collection of tips on what not to do with your funds.
While loads of money and no idea will likely lead to failure, a thorough strategy but low funds is something that can be overcome. It is possible to put your idea to work without much cash, and turn it into a consistent revenue stream in the long-run.
Below is a series of financial tips and business directions meant to help you maintain success despite a lack of capital:
1. Do what you do best
A full-time gardener shouldn't design a business around information technology security. Unless that gardener-IT specialist is a hyper-knowledgeable jack-of-all-trades, that IT business will probably fail. When the focus of your company begins to narrow, make sure that it is something you know well, Entrepreneur advised. When your business focus is something you know a lot about, then you won't have to hire outside experts or consultants.
2. Go medieval on other businesses: Take up bartering
Most people deal in cash or credit these days, but setting up a bartering relationships with local business or community banks can help raise the profile of your company while building important relationships, Nolo recommended. Bartering was the practice of two entities completing a transaction without the presence of money. When you're starting a company and don't have much money, this can be useful. Trading goods and services will be a great way to get your small business off the ground without spending a fortune on resources.
3. Avoid debt and unnecessary expenses
You can barter forever, but that will only get you so far. Eventually you'll have to spend some of that limited capital in order to really get going and guarantee yourself growth in the future. While you can't avoid eventually spending some money, Entrepreneur wrote, you can ensure that you don't overspend. Your financial plan shouldn't always trend toward thriftiness unless there is a guaranteed return. As your company grows, frugality may not matter as much, but for now it is very important.
And not getting overwhelmed with credit card debt plays directly into this. Purchasing the necessities with a credit card will only rack up debt quickly. Use your business' revenue to fund its expenses, Entrepreneur stated.
4. Take advantage of any and all advertising opportunities
Any opportunity you see for some free marketing, take it, Entrepreneur suggested. There are a number of ways to get people talking about your business without spending any money. Make sure your company has a presence on social media and leverages it well, since this is a great way to connect with people. Also, reach out to local media in order to offer your knowledge of a particular area or subject. Remember to always be responsive with the media and create a list of contacts within local news circles that you can reference. Constant contact with media may lead to them seeing you as an authority on a particular matter. This way, they'll start contacting you.