Starting a business with limited capital
If you’ve been on Twitter long enough, you’d have seen the regular announcements of fundraising by startups, be it pre-seed, seed, series A, B, C, or D, so much that it almost seems every business is getting funded. While that may seem like the only type of tech news currently being propagated, the truth remains that not every business will get funding. This is not a bad thing as there are many businesses that started with limited capital and still succeeded. Examples of such businesses are-
5 GoFundMe etc.
Getting funding itself doesn’t come easily and you will have to prove that your business will be viable either to a bank or prospective investors. Although starting a business without capital is not easy, it is achievable.
This article will teach you how to get your business started without capital.
How you can start your business with limited capital.
1 Have a viable business idea: A business idea is a foundation upon which a business is built. Your business idea is the first thing you need to figure out when starting out as an entrepreneur. This is because every other step is dependent on that decision. Read this article to know more about how to figure out the right business idea for you.
2 Utilise your available resources: Look at what you can do, your experience, and the resources that are available. It is important to take this seriously and go deeper while taking stock. Collating your available resources, both tangible and intangible, will help you identify how best to execute your business idea.
3 Leverage on your network: Look at your existing relationships to know who to contact for assistance. Map out your network of contacts and figure out how your connections can help you use your resources in an effective way for your business.
Types of businesses you can start with little to no capital.
Businesses started with limited or no capital typically have certain characteristics. They are either service or education-based. Service businesses utilise the skills and time of the person starting the business, therefore, making it relatively cheap to begin. What is most needed are the tools required to do the work. So if you’re a graphic designer, look at investing in the software required to do your job as opposed to starting a billboard advertising company where you would have to invest huge amounts in billboard space. For education-based businesses, as far as you have the skills and insights that others are willing to pay to learn, you can start. Additionally, the internet has made it easier to set up online classes and lectures making it even more accessible. In the education arena, low capital opportunities are endless.
Examples of such businesses are-
- Event planning services
- Errand/Concierge services
- Social media consultant
- Online courses and tutoring
- Digital marketing services
Although it is possible to start a business without capital, you may explore getting funding when your business has reached the growth or expansion stage, especially if you are looking at opening your business to international markets. Usually, it is easier to raise capital when your business has proved to be viable. However, this is a decision that has to be well thought out and tailored towards the unique needs of your business.