How to Start a Business with little or no money

Many people think that capital is the biggest roadblock to starting a business. That is not true. Capital may be one of the roadblocks to starting a business but it is not the biggest roadblock. You can start a business with even no money only using your mind. You may, for example, envision owning a publishing house. Start by writing stories and features to the editor then become a free lance journalist, a newsletter producer and you will be on your way to your coveted publishing house. What about a dream to be an hotelier? You may start with food deliveries to offices, then to outside catering and eventually become an hotelier.

The following entrepreneurship steps will get you on the path to business prosperity no matter how much money you have right now.

Preparation

Remind yourself of the many reward of being self-employed then go ahead and prepare yourself for it. Motivate yourself with “nobody gets to be a millionaire working for another”. Observe role models, read success stories and find a mentor.

Ponder

Think about possible business ideas. What businesses fascinate you? What are your hobbies, interests? Can you turn them into business? Do a research on all the ideas at your disposal in terms of its strengths, weaknesses, opportunities and threats. Screen the business ideas and settle on one. The internet will be of help. Talk to your spouse, friends, and children. They will assist you settle on an idea.

Plan

First you must have a business idea. Armed with the idea you can then start planning about how to turn it into a business and earn profit. It also helps to have a business plan for the selected idea. Be proactive when doing a business plan, make sure you look at what the competitors are doing to see what you can do differently. When developing a business plan, you may realize that the idea is not possible to implement for various reasons including the needed funds to start it. You may therefore scale it down, postpone it or even abandon it all together and think of another one within your reach.

Plunge

Armed with a business plan you can now invest and start your business. And by the way it is not true that every business start-up needs money. It is the Chinese who say that a journey of a million miles starts with a first step. Even in business start from where you are – with what you have. A business is like a person. It can be born (started small) and grow into a big venture. Just like a person it can get old and die. You may have no money but you have your physical and mental strength. Start using them, do not leave them idle; do not channel them to illegal activities.

Persevere

Even when you are doing something you love, sometimes you can lose motivation and want to give up. Business management for prosperity is a game of perseverance and financial discipline. Profit has to be earned. When economists talk of break-even they mean that it takes time for an investor to recoup the initial invested amount and start earning a profit. Talent may get you so far, but only perseverance will get you there.

Profiteer

Eventually you will begin reaping what you sowed. Pay yourself, you have worked hard for that money and you deserve to enjoy it. So, depending on how much you have, you can buy the dress you always wanted, take a vacation, remodel your house, and upgrade your car. But make sure you garner the profit. Do not squander all your profit. If you feel that you cannot resist the urge, open a different account for the percentage of profit you wish to pay yourself with.

Plan again

Armed with profit, do a plan for growth, expansion, and diversification, whichever suits you. Plan to go international – and why not! Indeed planning is a continuous exercise. Some businesses have a plan of buying new stock, new equipment or diversification. Whatever it is your business needs, think of a growth strategy and plan for it.

Plough back

Reinvest the profits you have garnered. When economists talk of retained profits they mean that some profit has to be retained in the business for re-investment. Remember reinvesting is your road to business growth and financial freedom. If you want the gap between where you are now and your vision to be reduced, reinvest.

Persevere again

After re-investment you will need again to break even. This requires another game of perseverance and financial discipline. Do not get tired even when things don’t seem too promising. Just think of your vision.

Prosper

Enjoy your effort but do not become complacent. The only time you can decide to rest is if you have achieved financial freedom (your passive income exceeds your expenses.)You will know you have gained financial freedom if your business no longer needs your presence to operate.

The ten steps have a strong business message: business prosperity is not for the faint hearted and you do not need to have a million to make a million.