How to start a Small Business from Scratch at Home without Money for Dummies
So you’ve finally decided to start running your own business but are at a bit of a loss when it comes to some of the basics including the fact that your budget is strict and limited? The process of starting a business from scratch at home without money is a really delicate and tense process. From registering your company to paying staff, it will save you time if you learn the basics first, that is, learning to plan, learning to make key financial decisions, and learning to complete a series of financial activities. You don’t necessarily need money if you have the right combination of skills, work ethics, and marketing know-how, determination, and motivation. The easy steps I’ve listed and taken time to explain below can help you plan, prepare and manage your business. You’ll find useful links buried in this article that would also be of great help. Be sure to check them all.
1. Try to keep your job
Business is risky especially when you start without capital. At least, start the journey by keeping your job for now. This will help to reduce pressure on you. Trust me on this one – at the early stage of your business, it’ll be wise not to walk away from a steady paycheck. This will give your business enough time to grow. You don’t have to worry about how you’ll pay your bills, your paycheck has got that part covered. Once your business is standing on her feet and has started to generate revenue, you can now start thinking of quitting your job.
2. Stick with something you know
Stick with what you know by building your business around your passions and experiences instead of starting outside your comfort zone. Build your business on your skills and knowledge. You can learn new skills, but that will definitely take time and will require additional expenses. You might have to take courses, get licenses, pay consultants, and so on. If you want to start a business quickly, you’ll have to focus on what you can do now not years from now. Besides, starting a business in a field familiar to you will give you additional confidence.
3. Do all the work yourself
I know that it can be exhausting to do all the work yourself, but right now, you’ll have to because you don’t have the budget to hire help. You won’t be paying an employee or an outside company, that way you will be able to put every dollar back into your business. It will be tough, but if you stick with it, you’ll eventually build up a cash reserve.
4. Offer a service
You don’t need money to start a service business. With an ability to knock on doors and make sales, you’re good to go. Use this means to finance your dream business. See 15 service business ideas you can start with below.
- Aerial film photography – Why not turn the use of your drone, into an aerial photograph business. Their services are widely needed in the real estate market and other businesses.
- Affiliate Marketing – Affiliate marketing gives you an opportunity to earn a ratio of sales without having to create a merchandise or maintain an inventory.
- Babysitting – Babysitting isn’t just for teenagers. Market yourself as an Au Pair to target a higher-end clientele.
- Baking – If you enjoy baking and can do it very well on a more professional level, why not turn this passion into a small business?
- Boat Cleaning – There are a lot of boat owners out there who only enjoy using their boats and not cleaning it. They’d rather pay someone else to do the cleaning than doing it themselves. You’ll only need to buy cleaning equipment and look for potential clients to get started.
- Bookkeeping – There are a lot of this kind of jobs out there. You can even decide to start your own Bookkeeping business. Businesses would hire you to keep their receipts in order.
- Business Consulting – If you have set of skills that can help build a profession, then there is a marketplace for your service. Businesses out there would pay you a lot for your services.
- Make your Own Beer – A lot of successful breweries out there started out on a small scale. You can also start this way. In the long run, you’ll make a lot of money and have a successful business.
- Tour Guide – Supervising tourists around your native area can be an amusing and a profitable way of sharing your local knowledge.
- Translator – Are you a multilingual person? Then translating business might just be your thing.
- Trash Removal – Removing trash is a filthy job, but it can also be a very profitable trade.
- Travel Consultant – Start up trips to popular destinations.
- Videography –Do you have a video camera and some directing talent? Then try making videos as a business.
- Virtual Assistant – People need virtual assistants to do all kinds of tasks remotely.
- Website Flipping – You buy a website at scrap value. You develop it and resell for a much higher price. With the right set of skills, you can turn this into a successful business.
5. Partner with an entrepreneur
Partnering with an entrepreneur is not a bad idea. There are a lot of entrepreneurs out there who are either too overwhelmed or simply burned out with their business that would need a partner to work with. Most of them would want you to buy yourself into a business partnership, but there are still ways for you to do this with little or no money.
6. Find a co-founder with money
We have a lot of successful businesses out there that are started by two or more founders. Starting your business this way will improve your chance of success and you wouldn’t have to bear the entire financial burden by yourself. Search for a potential co-founder. Make sure it’s with someone you really trust.
7. Get paid fast or upfront.
You need to get paid fast so your business won’t hurt. Slow payments will slow you down. If you can’t get paid fast, at least ask for an upfront. Try the processes below:
- Ask for at least 50% payment upfront.
- Offer incentives to pay early.
- Go to your customers, if your clients are local.
- Send invoices at least once a week.
- Tell your customers to make payment with a credit card or electronic bank transfer.
- Fire customers who are chronic late payers.
- Set up automatic payment.
The whole process might seem overwhelming at first, but it is do-able. Try taking it one step at a time. Be sure to track and measure your results. Rinse and repeat the ones that give you the best results. Easy isn’t it? Ever been in a situation where you didn’t have the capital to start your business? Share with me the strategies that helped you raise money in the comments.