If you want to start a business, but have no money to cover the startup costs, don't despair. With a little creative thinking you can raise the necessary funds and have your business up and running. Here are some ways to find the necessary money to start your business:
- Use credit cards.
- Borrow from friends and family. Remember to be professional and put everything in writing.
- Find a partner who has money to start the business with you.
- Apply to the Small Business Administration and other government programs for help with funding. There are special financing options available for women, veterans and minorities.
Here are some ways to keep your expenses down when starting a business with no money:
- Start a service business, so you won't have to lay out a lot of money for product [source: Smith].
- Produce on demand. Collect your customers' fees up front for a product or service you will provide later down the line. Then you'll have money with which to procure the product or service. [source: Smith]
- Don't keep any inventory. If you're selling a physical product, have the manufacturer ship the product directly to your customer. This will save you on storage as well as on shipping.
- Don't hire people to do something you can do yourself. Get free legal advice online, learn how to prepare your own financial statements and use a free website to design your own logo. [source: Armstrong]
- Don't be a perfectionist. Get your business off the ground. When you have the money, you can spend it making everything perfect.
- Hire contractors instead of employees. You only pay contractors when they work for you, and they won't need space in your office. [source: Camusio]
- Barter your own skills and services for products you need.
- Don't incorporate, insure or bond your business until you get it off the ground.
- Don't quit your job until your business starts making money.