Is Starting A Business With No Money Possible?

Starting A New Business

Everyone dreamed of starting their own business. Almost two-thirds of the population have a business idea, but 63% say lack of funding is the biggest reason that holds them back. What is the good news?

Now, it is faster and easier than getting your business up and running without the need for a huge financial investment. If you are serious about starting a new business, why not find out more about easy funding?

Stick to your regular job!

Taking the entrepreneurial plunge can be a worthwhile adventure. You may try not to pull all the eggs in one basket, especially when starting a business without money. Instead, to try to live off the savings or the credit card, you may consider keeping the day job or going part-time until getting your business in a financially comfortable position. You need to have a steady income when your business grows as it allows you to be more flexible when speaking to your business finances.

Having a steady income as your business is growing will allow you to be more flexible when it comes to the business finances. Once your business profit is more consistent and you feel confident about where it is going, you will be in a more comfortable position to leave the day job and focus solely on the growing business. Determining if you are in the position to comfortably leave the day job, you should consider the following:

  1. How much money must you be earning monthly to live comfortably?
  2. Is the business profit large enough to both live off of and fund your business?
  3. Do you pay the bills and business expenses with your business profit?

Instead of trying to live off the savings or a credit card, consider keeping a day job or going part-time, until you get your business in a comfy position financially.

Starting A New Business

Make a realistic budget and business plan

Before you take the plunge to become a business owner, be sure to take time to calculate the business expenses and come up with a plan to spend both on a monthly and yearly basis. It helps understand how much money you will be spending upfront. How much will you need to fork for over a month? The typical business expenses may include:

  • Tenant improvements
  • Raw materials
  • Office furniture and supplies
  • Labor
  • Software
  • Rent
  • Tools and equipment
  • Opening inventory
  • Website design and hosting
  • Advertising or promotions

Investing time into building a business is hard work, so ensure you have your business plan.

Starting A New Business

Online or at home?

When you think about starting a business, there are some costs to expect to incur. Most small businesses need a startup fund to get them off the ground. But, if the business idea allows you to operate from home or online, it saves you the cost of having a storefront or office and needing funds to operate both. To reduce your spending on the costs, any choice of business can be the best solution, such as:

  • Online business
  • Service or knowledge-based business
  • Home-based business

A home-based business lets you eliminate rent and even tenant improvements, you even take tax deductions for using parts of the home for business.

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