4 Components To Starting A Business With No MoneyNov 30, 2020
Not every business needs thousands of dollars in seed money to get off the ground, but if you’re planning to start a company with little to no money of your own, there are a few things and components to starting a business you should know before moving forward. In this episode of The CoLab, hosts Megan Marsh and Andres Munar retrace their steps through starting their own businesses and offer tips to get your new enterprise up and running.
Plenty of successful businesses have grown from very humble beginnings. It’s possible to start a business with little or no money of your own, but it’s important to understand that money is only one part of the equation. As a prospective business owner, there are factors to consider other than where the money to run your business is coming from.
Four components that you need to evaluate before starting a business with little cash are:
1. Money - If you can’t bring a lot of seed money to your venture, what is your plan for securing enough funding to get your business up and operating?
2. Experience - Whether you’re a fresh college graduate or someone with decades of work experience, you need to evaluate how your experience will shape your future company.
3. Results - Do you have a successful track record of getting results? Having that drive will help you get your business started and may convince others to invest in your venture when they see your past success.
4. Time - How much time can you commit to your new business? If you’re starting out with little funding, are you willing to put in time without paying yourself to grow your business?
The combination of the four components will look different for everyone. Some people may have more time to dedicate to starting and maintaining a business but may lack relevant experience in that field. Others may have the experience and track record of successful results but may not have the time or money to step out on their own. That’s why it’s important to evaluate these four components and understand what you can bring to the table before you start making plans to start a business.
Ready to dive in? Here’s what we’re covering in this episode of The CoLab:
● [02:00] It is possible to start a business without any money, but you need to be intentional. Start one you want, not one that costs the least amount of money to set up.
● [02:40] Four components you need to evaluate before you start a business are money, experience, results, and time.
● [06:45] As a business owner, you encounter a lot of expenses, so if you don’t have much money to invest upfront, you’ll need to find a way to make enough to cover your operating costs until you can establish a more reliable flow of revenue.
● [13:30] Everyone focuses on what businesses you can start with no money, but you need to think through the other three components to figure exactly what kind of business you want to start.
● [17:45] When you’re sitting down and thinking about the business you want to start, whether it’s your first or fifth, evaluate each of the four components and figure out what you can bring to the table.