Starting a business is hard work. It requires time, effort, dedication, and most of all, money. Did you know that 90% of new startups fail in the first year because of the lack of funds? Entrepreneurs globally are struggling to keep their startups afloat. So, how do you make your startup successful in this chaos? All you have to do is be a little creative and opportunistic. And, we’ll tell you exactly how to do it.
Tip #1 – Use creative methods to get funds
Most of the time, the first thing entrepreneurs look to when starting a business is taking out bank loans or pitching to investors. And, these traditional methods won’t always be your perfect recipe for success. Before moving on to these options, we suggest you look into what assets you have.
Saving up for a retirement fund? Or have investments that can be dissolved into money for your new startup? If so, try to get your funds right out of your pockets. However, be smart when you invest money. Only use what you wouldn’t mind losing. You can never be too sure of success when it comes to startups. But hey, it’s a better step to take than getting into debt on the first stage of your business.
And, then you can also try other newer options such as crowdfunding or Angel investors. If you think that your idea would be a hit with the public, why not make a cool website and ask for funding? You can include information about the product or service you are going to give and how it would make your customers’ life easier. If your pitch is interesting, you’ll find customers who’ll be thrilled to invest in your business. Angel investors, on the other hand, are rich investors who by chance might be interested to invest in your startup.
And, finally, there’s one simple thing you can do to raise funds. Just ask your family and relatives to invest a small amount of money in your startup. Or, do what Cynthia Kersey of the Unstoppable Foundation did, hold a birthday party and ask guests to donate money instead of a gift! Or, try whatever clever idea you have to get funds.
Tip #2 – Get things done at a low expense
At some point in your business, you are going to have to outsource. No one can handle all aspects of a business. Whether you need to build a website or create a logo, the most feasible thing to do is to outsource it to an expert. But outsourcing can get expensive if you don’t know where to find the best talent for the best price. Want to get things done at a low expense? Try outsourcing to freelancers. There’s a wide variety of freelancers to choose from at the lowest prices. And, you’ll surely find the best fit for your business.
To reduce costs, use your connections to get things done. Have a friend who can develop websites? Why not ask him for a website at a low price? Or maybe you could trade skills or sell services to get your things done. And, try to make new connections. Does your friend happen to know an important person personally? Then ask your friend to introduce you to them. These connections may help you reduce costs in the long run.
Tip #3 – Take baby steps
When you have a new and incredible idea, it’s hard to not get excited. And, getting excited is fine. But most entrepreneurs make the mistake of getting too excited. They try to scale things fast and end up losing everything. So, when you start a business, it’s very important to take baby steps. And, be realistic! Your startup idea is not going to take the world by storm tomorrow. So, don’t expect it to. Rather, have attainable goals that you can reach one by one.
Are you planning on setting up a clothing brand? Then, rather than putting out a variety of items, try to focus on one item first. For example, you can start your clothing line by just selling hoodies. Focusing on one aspect of your business is very helpful in establishing a customer base before you try to expand further. So, start small and scale when your business is financially stable.
Tip #4 – Use the internet to your advantage
Internet and online shopping are powerful tools for any business. So, if your business focuses on a product that can be sold through the internet, set up an online shop. It is way more affordable than trying to brave the retail market in the first few steps of your business. And, when you are online, there’s a lesser chance that your product will disappear among the noise of other well-known products.
Don’t have enough resources to create your own online store? Or, want to create a solid customer base before you try that? The internet got all the tools you need. Try listing your products on shopping portals such as Amazon, eBay, or Etsy. These portals are completely free and will be invaluable if you are starting your business with little to no money. You can also establish a good business startup through reselling items. Try methods such as drop shipping to use the internet for your advantage.
Tip #5 – Be brave
Sure, there is a 90% chance that your business would fail. But, if you don’t try your idea, you’ll never know if you failed. So, stop fearing failure and start taking chances. Who knows? Your business idea might be the next Starbucks or Walmart. Read inspiring stories and motivate yourself to keep going. For a lasting business, be brave about your choices. If you think your idea will work, it will work.
Are you trying to start a startup with little to no money? Then we hope we inspired you through this article. It is absolutely possible to start a business with little money. Most successful entrepreneurs in the world including Bill Gates and Elon Musk did not have money when they ventured into the business world. They just had an idea and they believed it would work. And then they made their dreams a reality. You can do the same. All it takes is hard work and a whole lot of creative thinking.