8 Musts to Start Your Business With Little to No Capital

Entrepreneurs will often have amazing business ideas,
but they put them on hold due to a lack of capital. They
assume that their idea will never get far off the ground
unless they have major funding behind them.
It seems that every day there is a new startup receiving
millions of dollars from venture capital firms, but what
you don’t hear about is the several startup failures that
burn through millions of dollars only to fizzle out and
shut their doors forever.
Related:
5 Ways for Bootstrapped Startups to Get Through the
First Year
Maverick Startup (Book)
If your idea and plan of execution aren’t well thought out
from the beginning, no amount of money can turn it into
a winner. Have a great idea but very little money? Don’t
let that stop you! Yes, there will be ridiculously long days
with little to no sleep. Yes, you are going to be stressed.
But those that want it bad enough will make it.
Here are eight tips that can help you get your idea off
the ground with limited funds.
1. Build your business around what you know. Instead
of venturing off into uncharted territory, make sure that
you build your business around your skills and
knowledge. The less you have to rely on outside sources
the better. When your business is built around your own
personal expertise you can eliminate consultants and
outside assistance.
Also, having that knowledge is sometimes all that is
needed to successfully take the plunge into
entrepreneurship.
2. Tell everyone you know what you are doing. Inform
your family, friends, business contacts and past
colleagues about your new business. Call, send
emails and make your new venture known on your
social-media profiles. Your friends and family members
can help you spread the word, and past business
contacts can introduce your brand to their professional
contacts as well. This type of grassroots marketing can
help introduce your company to a much larger audience.
3. Avoid unnecessary expenses. You are going to have
plenty of expenses, and there are some that just can’t be
avoided. What you can avoid though is overspending.
Take something as simple as business cards. You could
drop $1,000 on 500 metal business cards that give off
the “cool” factor, or you could spend $10 on 500
traditional business cards. Being frugal in the beginning
can be the difference between success and a failed
business.
4. Don’t get buried in credit card debt. There is a smart
way and a suicidal way to use credit when starting a
business. New computers, office furniture, phones and
supplies can all quickly add up. Instead of purchasing
everything at once and throwing it all on a credit card,
use your company’s revenue to finance your expenses.
Eliminating the stress and burden of debt will greatly
increase the chances of creating a successful business.
Related: Funding Your Business on Your Own? Learn
From These 7 Entrepreneurs
5. Make sure your receivables policy won’t sink you. If
your business is a retail operation then this isn’t going to
apply, but if you are providing services such as
consulting or products to retailers you need to make sure
that your payment policy is well thought out. Can you
remain above water with net-15 or net-30 terms? Don’t
base your receivables on what you think your customers
will want. Base them on what is going to make your
business operate successfully.
6. Build up sweat equity. When I first started my
business I worked around the clock, handling every
aspect of the business as well as the marketing and
growth. All of the hard work and long days that you put
in isn’t for nothing. You are building a brand and your
hard work is essentially increasing the value of your
business. Your sweat equity will come into play if you
ever decide to sell off a piece of your company or take
on a partner.
7. Take advantage of free advertising and marketing.
There are several ways to generate a buzz for your
business without breaking the bank. Social media is a
great way to gain exposure and interact with potential
customers. You can also reach out to local media and
offer your expertise.
Make as many local media contacts as you can and be
extremely responsive with their requests. This can lead
to them to branding you as the local authority,
generating plenty of free press for your business.
8. Get ready to hustle. Hard work is an absolute
necessity, but when you are starting a business with
little to no capital then you must be prepared to dedicate
everything you have into making the business a
success. This might mean cold calling, handling
customer support, dealing with billing and accounting,
and every other working part of your business. You will
wear many hats and it will require the majority of your
time and energy if you are to make it.
Don’t let limited capital prevent you from taking a great
idea and running with it. Will it be difficult and will you
have some stressful situations? Of course, but that is
part of entrepreneurship.
Have you started a business with sweat equity alone? If
so, let us know about your experiences in the comments
section below.