Starting a business without capital, demands creativity and resourcefulness.

If you are currently in a position where you want to start your dream business but you have little or no capital, then I’ve you covered.

I will be showing you how to get this actualized.

STEPS TO TAKE WHEN STARTING A BUSINESS WITH LITTLE OR NO CAPITAL

1. Seek for financial Assistance:

a) Crowd Funding:

Crowdfunding is a method of raising capital by collecting small amounts of money from a large number of people, typically via online platforms. Individuals with a project or business idea can create a crowdfunding campaign, set a funding goal, and invite the public to contribute funds.

There are 3 types of crowdfunding:

•  Reward-based (backers receive a non-financial reward)
•  Equity-based (investors receive a share in the company)
• Donation-based (contributors provide funds without expecting financial returns).

Popular crowdfunding platforms include Kickstarter, Indiegogo, and GoFundMe.

You can utilize this platform to raise funds from the community interested in your business idea.

b) Grants

Grants are non-repayable funds or financial assistance provided by governments, organizations, or foundations to individuals, businesses, or institutions for specific projects, initiatives, or purposes. Unlike loans, grants do not need to be repaid, making them a form of financial support.

Look for grants that provide funding for innovative ideas. Many organizations offer financial support for entrepreneurs.

For instance: The TONY ELUMELU foundation provides a $5000 grant for African business startups.

As of today, TEF (TONY ELUMELU FOUNDATION) has given out over $102 million as seed capital to support and grow African startups.

2. Choose business idea that does not require Capital Upfront:

When you have limited funds, consider starting a business that will require little or no funds when starting out. These businesses include:

• Tutoring: If you are a master in a given field and you have the grace to be patient with people, then you can render the service of teaching virtually. You can do this at home, in coffee shops, in eateries or in a client’s home.

• Graphic Design: If you are good at creating eye-catching designs, then you can consider working as a graphic designer on different freelancing platforms like Fiverr and Upwork.

• Virtual Assistance: As a virtual assistant, you can help with doing the little daily tasks such as scheduling an appointment, booking a flight, managing a database or calling a client.
• Dropshipping : Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when you sell a product, you purchase the item from a third party (usually a wholesaler or manufacturer) and have it shipped directly to the customer. This means you never see or handle the product. The main advantage of dropshipping is that it allows you to start an ecommerce business with minimal upfront investment, as there’s no need to purchase and store inventory.

3. Retain your day Job:

It’s important to keep your day job while trying to build your dream business. Since you do not have a substantial amount of money to fund your business, you can start with running your dream business at night and during weekends while you build up funds.

4. Perform a market research:

Market research is the process of gathering, analyzing, and interpreting information about a market, including details about potential customers, competitors, and the overall industry.

Market research is a crucial step for you to understand your target audience, assess market demand, and make informed decisions to position yourself competitively in the marketplace.

5. Write a business plan:

A business plan is a written document that outlines a business’s goals, objectives, strategies, and the detailed steps it will take to achieve them.

It serves as a roadmap for the business, providing an overview of various aspects, including your company’s mission, target market, products or services, competitive landscape, marketing plan, operational structure, financial projections, and more.

Key components of a business plan include:

• Executive Summary: This is a  concise overview of the business, summarizing key points, goals, and strategies.

• Company Description: This is detailed information about the business, its history, mission, vision, and legal structure.

• Market Analysis: This includes Research on the industry, market trends, target market, and analysis of competitors.

• Organization and Management:This includes details about the company’s structure, key personnel, and management team.

• Product or Service Line:This includes description of products or services offered, their features, and benefits.

• Marketing and Sales: This includes strategies for promoting and selling the products or services, including the target audience and pricing strategy.

• Funding Request : This is not compulsory. It is included if you need funding for your start-up. This includes information about funding requirements, especially for startups or businesses seeking financing.

• Financial Projections: This entails forecasted financial statements, including income statements, balance sheets, and cash flow statements.

• Appendix: These are additional supporting documents, such as resumes of key team members, market research data, or any other relevant information.

In writing your business plan, Do well to use plenty of visuals to break up the text and make your plan more visually appealing.

6. Leverage on Free Resources:

When starting out, it’s important you lookout for cost effective tools and free resources.

There are a lot of free resources that can help you achieve your goals as a startup.

This ranges from online tools like Convertkit for email marketing, Canva for graphics, Google meet for online meetings to offline free tools like Notepad++ for general text editing, KeePass for managing password offline and lots more.

These free tools will help you cut down cost to the barest minimum.

7. Networking:

Networking is very crucial in business. Connect with mentors, industry experts, and potential collaborators who may offer guidance, resources, or even financial support.

Sometimes, it’s not just about what you know, but who you know. Standing on the shoulder of mentors makes your journey easier and faster.

In conclusion:

The presence of money makes the business journey easier but the absence of it does stop you from starting either.

You just need to be creative, persistent and focused to make your dream business a reality.