Creating an online store is more accessible than ever, thanks to easy-to-use platforms, such as Wix or the Amazon marketplace for small businesses. If you have little or no starting capital, a convenient option is to work with a drop shipping provider who is willing to process orders for you. The vendor keeps their share of the profits and you, the merchant, get what's left. Many small business owners start by applying for a small business loan or a business line of credit. Over time, the company's revenues will grow to the point where they can support you, but it's a good idea to build up some personal savings to live on until then.
If the idea of starting a business with no money scares you, stop and reflect on the things you can do without right now. Keeping your expenses low will allow you to reinvest in the business, and that can be a recipe for growth. Updating your LinkedIn profile with information about your new independent business is a free way to do this. This is why starting your business and collecting the costs of the first start-up on a given day can be important for tax deductions during tax season.
Turning to friends and family for financial help is another option you can explore when you're discovering how to start a business with no money. I want to start a small business, such as a hobby store that sells comics, cards, games and other things like that, since my city doesn't have one and I think there's a market here. Many state and local governments also offer grants to start a business, especially those that can benefit the community or create jobs. If you have done market research and you know that there is a high demand for your product, this can be a good way to start a business with no money. If you're not sure how to price your product or service and generate a profit margin, research what competitors charge or talk to a small business advisor at a local small business development center or the SCORE mentoring organization.
Bank of America's Form Your Business page is a great starting point for exclusive offers on business creation and more. Staying conservative with your costs as your business grows will help you generate the necessary cash flow if you ever decide to lease a store for the long term. Today, I want to share some strategies that can help you achieve your business dreams without draining your personal savings account or piling up insurmountable credit card debt on a business credit card.
