Here are the steps you should take
Running a business offers plenty of benefits, from creative freedom and flexibility to unlimited income potential and personal satisfaction. Many people aspire to become self-employed, but unfortunately, they put off their ambitions for different reasons, one of them being the realization that starting a business requires money.
But is that always the case? You may be surprised, but the answer is no! Sometimes, it is possible to start a business even if you don’t have upfront capital. If you want to become self-employed, keep reading to learn more about how you can make your dream a reality.
Avoid quitting your job right away
When you get a business idea and decide that you want to pursue it, you may feel tempted to leave your 9 to 5 and commit to your venture fully. But this is not a good idea, no matter what you may have seen on social media. There is a huge risk involved – especially if you lack funding. The best way to approach this is to stay realistic and be willing to make compromises so you can ultimately achieve your dream. This means dedicating time for your venture after work, and on weekends.
By keeping your job, you will ensure you don’t have to live off your credit cards or, worse, your savings, as you will have a steady income. Once your business starts growing and you feel confident that it allows you to live comfortably, you can contemplate quitting your job.
Consider starting a business that doesn’t require initial capital
Do you already have a business idea? If so, you’ve already completed one of the most difficult steps, because many people who want to get into entrepreneurship have to take some time to decide what kind of business they should start. And things get even more complicated when you lack funding. Luckily, there are different ideas you can choose from. For example, if you are skilled at writing, you can pursue a business in freelance writing, and create content in the form of blog posts, e-books, brochures, and so on.
Another idea is to become a home organizer, and help clients declutter and maintain their spaces as organized as possible. Or, if you specialize in a specific topic, you can become a tutor and run your business in a virtual setup, at your own home, in libraries, or in clients’ homes. And the list could go on, but these are just some ideas to get you inspired. Take the time to think about what you’re passionate about and see if you can pursue a business in that area without needing money at the beginning.
Conduct market research
Before you implement your business idea, you want to ensure it is viable. To do so, you need to start conducting market research, which will give you insight into how your venture could perform. Look at your competitors to see what they are doing: the goal of doing this is to determine whether you can provide more innovative and faster services or products. See what problems they fail to address and try to be the one that fills those gaps.
Also, you want to research potential customers as well by looking into aspects like age, occupation, location, and education level. Try to understand their current purchasing habits and whether they are willing to pay more money for products and services that address their needs effectively. To acquire this information, consider conducting a poll survey, creating a questionnaire and posting it in a group that customers have joined, and also talking directly to them, if possible. All of these things will shed light on the needs that aren’t met, allowing you to come up with the right solutions. It can be challenging to conduct market research on your own, and if you want to guarantee the best results, it’s best to work with a company specialized in market research, like Savanta. The company has multiple offices in Europe, making it easy to get in touch and collaborate to accomplish your business goals.
Develop a plan for your venture
A business plan is a roadmap that will guide you in making the right decisions and navigating challenges that will arise. Besides, it could also help you attract investors and secure financing. When writing your business plan, make sure to emphasize what makes your business different.
Include an overview of your company ( mentioning your business model, legal structure, and so on), summarize what you’ve found after conducting market research, highlight your marketing strategy ( how you want to promote your venture to customers), and outline a financial plan. All of these are essential parts of any business plan, so make sure to include them.
Take advantage of free resources as much as you can
Here’s the good news: there are plenty of free ( or low-cost) resources that you can use when running a business. You can easily find them by searching on Google for mentorship programs, workshops, and networking opportunities.
Another idea is to go to the local library and see if they can offer you some resources as well. Since they are available to you, why not take advantage of these resources and reduce your spending? This way, you can successfully launch your business idea without having to spend much money.
Network
Even if you have limited monetary resources, this doesn’t mean you won’t succeed in running a business. Consider networking with other entrepreneurs as much as you can, as they can share meaningful advice from the perspective of someone who’s been on the same journey as you.
Besides, they can also introduce you to people who can promote your service or products to their own customers and potentially offer you funding as well—you never know when an opportunity will arise, so be sure to attend conferences and trade shows and build connections with people.
Look for funding options
There may come a point where you need extra money to grow your business, and in that case, it may be time to look for funding alternatives. Luckily, there are many options you can consider. Suppose a loved one supports your business idea; they may be willing to offer you capital as a grant or a low interest. But make sure to be professional so that you won’t end up ruining your relationships.
Another idea is to rely on angel investors, who can also serve as mentors and offer you guidance in your entrepreneurial journey. Other options to consider are venture capitalists ( who provide funding in exchange for a percentage of your business), grants, crowdfunding, and small business loans.
Last words
Growing a business takes work, but with these tips, you will set yourself up for success. In the first stages of running your business, it’s wise to avoid unnecessary expenses as much as possible and only invest more capital once your business grows.
