How to Start a Small Business With No Capital

Do you want to start a small business but you have no start-up capital and you want to avoid loans? Though many small-business guidebooks will tell you that this is not possible, it certainly is. Read this article to learn how!

Start Small

The main key to starting your small business without capital is to start small. You can make plans to grow larger at a later date, but if you want to start with no outlay of capital, you need to start small.

Start With What You Have

The second key is to start with what you have. If, for example, you want to start a lawn care business, start with the lawn mower you already own. You can purchase a larger mower later, once you’ve gotten started and have some cash flow. But for the time being, start with what you own.
You will find that this may limit the types of businesses you can start. Very few people own, for example, a printing press, so if you want to start a printing business, you may need to look into obtaining financing.
If you haven’t yet decided what type of business you want to open, try looking around at what you have and what you know how to do. The most successful small businesses start with the owner’s hobby and develop from there. Most people who enjoy sewing already own all the materials needed to start a small sewing business. Most people who enjoy programming computers already own the necessary equipment for this business. Take a look at what you already own and go from there.

Start In Your Own Home

With no capital, you will not be able to open a physical storefront or an office outside of your home. Instead, you will need to use space already available to you in your own home. Some people are lucky enough to have an entire room available for their use in operating a small business. Perhaps a child has just moved into his or her own home, or maybe you have a den that doesn’t get much use. Put that space to work!
But what if your house is already bursting at the seams? Many businesses require no more than a desk and some storage space. A small desk and a file cabinet can occupy a small section of any available room - a corner of the bedroom, perhaps, or even the living room or dining room! Many people successfully convert an unused closet into their home office, which provides a handy way to hide the mess when expecting company.

Start With Low- Budget Advertising

Many companies find that their best marketing is free! Word of mouth is usually cited as the best way to obtain new clients or customers. Ask every customer to refer you to at least one or two friends.
Joining local business groups is another great way to market your business - these groups provide plenty of opportunity to network and get the word out about your business.
Most importantly, mention your business at every opportunity - when chatting with friends, when meeting new people, when visiting family. Don’t be shy! If possible, bring an example of your work with you everywhere you go. You never know when you will meet an interested potential customer.

Use Your Money Wisely

Use what money you do have wisely. Before every purchase, ask yourself if the item you’re about to purchase will really help you grow your business and if you can really afford it at this point. Don’t be afraid to put off any purchases until you’ve been able to consider it for a week or more.

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