You want to start a business to pursue your dreams but currently you don’t have much money. If you have an idea or want to start your own enterprise by taking some risks or you like to leave your current job or you want to proceed without much money for a while. If you know what you are doing then don’t stop, it is entirely possible to start and grow a business with almost no personal financial investment whatsoever.
Firstly identify key reasons for why investment is required for your business and then estimate the money that is required before starting your business thereafter make a fair assessment for different needs for investment to fund your business, then if required identify alternative methods to fund your business.
Identify the basic structural needs to setup your company and business for Licenses, permits, equipment’s, supplies, office space, utilities, operating expenses, marketing, legal fees, employees, contractors, associations, etc.
Approach to start business with less money
You need to formulate a business strategy as per below parameters to start your business to reduce your personal financial investment:
1. You may cut-down your costs or shrink your needs
You may work from home, engage task based contractors, find cheap supplies, start with less but key product lines etc. You need to take sound decision for other associated costs like licensing, legal expenses etc. to avoid any issues and future road-map for your business.
2. Piece-meal approach
Start with only the basic features instead of full-fledged business model to initiate with key important or niche areas by reducing scope, target potential customers, profit margins and once you start redeeming revenue, you may expand business.
3. You may increase your available capital from outside sources
You may seek piece of financial help from your family, friends, wealthy investors, bank loans, venture capitalists, Crowd funding, Government grants. The capital raising from outside sources may incur interest rates or partnership, partial ownership etc. that needs to be carefully thought and work-out to incur debt monthly EMI expenses, accommodating partner. This option shall be thoughtfully weighed, if you are highly confident in your business or idea and its implementation with no mistake to overcome bottlenecks.
I'm a self confessed foodie, king of the kitchen, wannabe anthropologist, technology evangelist , curious, inquisitive & experimental entrepreneur at @DigiLands and an adrenaline junkie. Love spending time with my wife & two young children and faulty KitKats that consist purely of solid chocolate.