Excited to start a new business? You got a great idea in your head with all the planning done to set up your own enterprise. Even there is a risk of losing the job and absence of regular income, you are all set to make your dream of launching your startup venture come true. However, there is one reason that holds you back, “there are not sufficient funds with you”.
In one way, this is a major problem but lack of capital can’t really stop you from chasing your dream. In fact, you can start your business with no money in literal terms. When we use the term “No Money” it means that with minimum funds you can bring your company alive. In this article, we will guide you to establish your business with minimum funds.
The first step before kickstarting your startup venture is to accumulate the funds that are required in the first place. In India, there is no set amount to start a company as every business has different requirements. As the owner of the startup, you need to first make an estimate for the funds require running a business and alternate methods to start the functioning of your company.
Expenses Related To Startup Venture:
Generally, every start-up owner needs money for the following things:
- Licenses and Permits: The special paperwork and registry amount usually depend on the region you are opening your start-up.
- Legal Fees: If you have to consult a lawyer whenever you are making business decisions, then you must consider this cost in well advance.
- Equipment: Need to see if your business requires special machinery or software to run the business.
- Office Space: This is the biggest investment an owner has to make with add-ons like electricity cost, maintenance expenses, and the internet.
- Supplies: If the production requires some raw materials or computer to build your final product, you need to calculate that cost also.
- Employees Salary: Even if you keep one or two employees in your company, you need to make sure to calculate the payroll for the entire year.
Now we have covered all the possible expenses your company might need, there are few ways you can start your business with virtually no money.
3 Ways to Start Your Own Startup Venture with No Money:
Cut Down on Personal Requirements: The best way to reduce the demand for funds in any business is by cutting down your own personal and professional needs. This means if you can work from home, then don’t invest in office space that brings huge dent in the pocket.
Bootstrap the Company: Instead of going for full-fledged business, you can launch a small blog or just provide one service that can generate some income for your business. Another way to start your business with minimum funds is by bootstrapping your company. You can ask your family members, relatives, or friends to join in your company as a partner with funds. This way you minimize the burden of funds without halting your start-up.
Get Angel Investors: Another popular way to get funds from Angel Investors. These are the group of people who are wealthy individuals who have money but lacks in business ideas. So, if you have a strong idea, then angle investors might do work for you. But make sure that any angle investor will only fund in your company with a deal of getting the certain part of shares of the company.
Apply for a Business Loan: Today, there are several Government schemes that encourage people to launch their own startup venture providing the much-needed funds initially. You can always apply for a business loan from a nationalized bank in the country to launch your startup business. However, it will be tough to please the reviewers to offer a loan without any financial assets, it will be all up to you to convince them why it will be fruitful to invest in your venture. Lately, the Prime Minister of India has launched an initiative called "Startup India" that is designed to motivate and develop the base for entrepreneurship culture in India. You can also try applying there.
Over to You!
Well, it is not easy to launch a startup venture without no money at all. However, with some smart moves and strategic approach, you can launch your dream company with few investments at the right places. I hope that you will come up with some fruitful results by following the tips above.
Good Luck for your Startup Venture!