HOW TO START A BUSINESS WITH LITTLE OR NO CAPITAL
“Lack of money is not as bad as lack of Ideas because Ideas rule the World
How To Start A Business With Little Or No Capital;
This word is a powerful word that every entrepreneur needs to be mindful of because starting/establishing a new business needs rational thinking and proper research. Since you have an idea of what you want and the market you want to enter, make more research on the existing companies/organizations in that line of business.
Identify the current trademark used by the companies and figure out how you can do it better. With this, if you are convinced that your business can deliver better or it can give the same quality but faster and cheaper than the other companies, you can conceive the idea and start.
Also, you must not wait until you have millions of naira before you own a business. This simple step has deprived a lot of persons desiring to own a business from starting and they shift all the blame either to their rich friends, family, or to the government.
The truth is nobody is responsible for your failure or inability to succeed in life because, for every Goliath that comes your way, there is always a David in you to conquer it. Until you take that bold step, the David in you will remain silent.
For the sake of this presentation, I will give you some ethics and strategies that will provide you with a better chance to successfully own a business with little or no capital.
Consider what you have
There are certain things one needs to look out for to start a new business. First and foremost you need to take the stock of what you have at your disposal. Like your skills, experience, knowledge, resources, etc.
This is one of the most important factors of starting a business with little capital. Your skill in that business counts, because it gives the business a good base. A lot of business starters with little capital failed because they don’t have enough skill in that business.
The little capital they are supposed to use to develop/grow the business, they spend it to pay skilled workers and submit to all the advice/instructions from the skilled worker either wrong or right. When the little cash with them finishes, they find it difficult to continue with the business, and with this, the business becomes history.
Every structural design is been envisioned in the heart of the designer.” One of the most difficult things in starting a business with little/no capital is not having enough experience or a proper understanding of the business.
That is why most company/organization, in their quest for giving out employment, they make more emphasis on years of experience. This is because your years of experience will help you to overcome some potholes which are also known as challenges that might want to frustrate the business.
In view of this, as a starter with little or no capital you need to have good experience in the business you are about to start so that the little capital you start with, will not be a wasteful resource.
Read also how to Learn New Skills Faster: 11 Ways to Start
There is this general saying that “knowledge is power.” Every business has its secrete which is the key to every business’s success or failure. You need to have a general knowledge about the business before you start, you don’t just start a business because your friend/relative is doing that type of business and because they succeed in it so you will also succeed.
If you have a vast knowledge of that business, it will help you to overcome every business loopholes which if not handled with care, will cause the business to fail but if properly managed, will give you an edge over your competitors.
The best you could do is to combine what you have to who you know for it to be more effective. Take stock of the relationships you have with others, map out your strategy to connect them with your business, and consider how your connections could enable you to get good results.
Because “Not everything that starts well ends well, but for everything that ends well, has a good starting no matter how rough the beginning is.” The little resources/capital you have is enough to start your business.
Most of the big organizations/companies in existence today started with the little resources they have. If they wait till they have millions of naira before they start, they might never start.
The word humble that was used here did not literarily mean meekness but your approach towards starting the business. It is not advisable you start a business with a borrowed funds.
The fact that you have a good idea or knowledge about the business does not guarantee 100% success. Start with the little capital you have, along the line when you have some challenges that want to affect the business or when there is a need to grow the business you can borrow funds to support it.
But when you start a business with borrowed funds, it will be difficult for the business to balance because part of the income will go for refunds, while the other will go for the business which means you will either focus more on the refunds or the business.
If the business eventually faces challenges there will be no place to run to.
This is another key factor to be considered in starting a business. Every business has its own suitable market for it.
Take a good visibility study on your targeted audience and the environment in which you want to establish the business. Some businesses are good for the rural areas while some are good for urban areas. If you have good ideas/knowledge about a business with the wrong location, the business might suffer growth or collapse.
The place of sponsorship cannot be left out especially for someone with strong/quality idea and no capital. The fact about it is that there are people/organizations that are willing to help to finance a business/project.
The first thing to do is to establish a goal to create a venture that will fill that gap. Secondly, consider the necessary capital to make your goal a reality.
Thirdly, write a good business plan and present it to potential investors with the promise of a return on investment. If the investors are well convinced with your ideas, they will provide you with the capital to start the business.
there are more to starting a new business with little or no capital but what matters most is the success of the business. Note that it is not how far you’ve gone on the business that matters but how well you are able to succeed in that business.
I hope this will help you in your quest to start and grow your business. Please don’t wait until you have a million dollars or naira before you start else you might never start. Follow the above steps and you will never regret it.
Hope to see you at the Top.