The Business 360 Podcast with Rushab Kamdar

#24: How To Start A Business Without Money

November 01, 2021 Rushab Kamdar Season 2 Episode 24
The Business 360 Podcast with Rushab Kamdar
#24: How To Start A Business Without Money
Show Notes Transcript Chapter Markers

In Episode 24 of the Business 360 Podcast, we discuss how to launch a business if you are cash-strapped.

I will cover the top 5 challenges you will face as you begin your journey in starting a business without money.

Next, I will provide the top 8 strategies to follow when launching and running your business with limited funds.

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Welcome to the Business 360 podcast where we will take a 360-degree view of all things business in under 15 minutes, I'm, Rushab Kamdar a serial entrepreneur consultant, speaker and business strategist. I help entrepreneurs and businesses get profitable while also saving them time, money and headaches.

Hey, there are business heroes. After a four-month break, we are back in action and we made some changes that will make this podcast more enjoyable. First, the episodes will be war on actionable strategies, hacks, tips, and advice. That means you will get answers in each episode. You'll be getting those answers much more quickly as each episode will be under 15 minutes, usually average, about 10 minutes an episode.

I know there are a lot of podcasts out there, so I decided let's not waste your time. Finally, episodes that interview other amazing entrepreneurs will be bonus episodes. Our weekly rotation will focus on me providing you strategies so you can keep that focus on growing those profit margins in your business.

All right. So let's dive into episode 24. And if you've been following this podcast and you know that we talk about all things entrepreneurship today, we're going to dive into a topic that so many aspiring entrepreneurs face. And even if you're not an aspiring entrepreneur, but you're an established entrepreneur, you may face a scenario at some point, if you're starting a new endeavor.

And the topic we're going to talk about is how to start a business with no more. Now as an entrepreneur that has owned eight companies to date, I will tell you starting a business with no money is a difficult journey in an already uphill battle. But, and there's always a, but if you have the drive, if you have the commitment and most importantly, if you have the sound strategies, then by all means, take that leap into entrepreneurship and follow your dreams.

Now, before we dive into this extremely relevant topic, let's talk a little bit about what I mean when I say no. Are you really starting a business without money? See, the fact is whenever you start a business, there's always going to be a cost element to it. You have to spend a little bit of money. For example, you have to spend money on registering your business or buying a website domain, or even subscribing to a website hosting platform.

But the reality is that these are very small costs and most people can afford them. So it's never truly starting a business with no. So, what do I mean when I say the word starting a business with no money? Well, basically think about all those high ticket expenses that can become necessities during our startup, but you can't afford them.

These high ticket expenses are office equipment, like a computer or tablet, or if you want office space, then the high ticket expense is rent. If you want to hire help then employee salaries and labor costs are high ticket expense. Marketing and necessity for all businesses is a high ticket expense, or even the cost to make the very product that you want to sell to your customers can be a high ticket expense.

See, the point is whatever your needs may be, they can be large expenses and a lot of people cannot afford them initially. So these new entrepreneurs have to get creative. Therefore this episode will focus on how to start a. Without being able to afford those high ticket expenses required to run a business.

Now that we got this cleared up, let's start out with answering a question. Can you start a business without money? And I'm just going to give you the answer right now. The answer is yes. A resounding. Yes. And that's because we've all heard of the success stories of entrepreneurs who are able to start a business while they were cash strapped.

I'm one of them I've been in those shoes where I'm cash strapped. And I had to go ahead, follow my dream, start a business, and really bootstrap. So the most helpful thing for you to remember is that every business starts out small. And when you are a small business or a startup, you should do your best to keep your cost as low as.

Now, I know you're waiting for the answers on how to start a business without money, but I think it's a great idea to start with discussing the challenges that you may face. If you decide to go down this road, see I faced these challenges on my own. In my journey. What I decided to do is jot down the five most notable challenges that I believe you will face.

If you decide to start a business without having. The first challenge is going to be your difficulty in finding equipment and supplies. See different businesses, require different types of equipment. Our restaurant will need kitchen equipment. A moving company will need trucks and vans and an online entrepreneur will need audio and video equipment.

So regardless of which type of business you're in, you're going to have to find creative ways to work around these challenges or find cheaper alternatives. The second challenge you're going to face. Is on growth. Every startup is in growth mode, and if you don't have the money to put towards marketing and advertising, then you're going to have to rely on organic marketing as a growth strategy.

Organic marketing is basically using free platforms to push out your marketing and ad advertising messages without paying for it. As you can guess, the problem with organic marketing growth strategies is that it takes a lot longer to gain customer traction and to. Another challenge you'll come across is on staffing.

If you're unable to hire help, then you're going to have to wear more hats and do most of the work. I overcame these challenges by what is called upskilling upskilling essentially means learning new skills so that you can compensate for the lack of extra hands on deck. If I couldn't hire someone to do a task, I just learned it.

And I will agree with you. There are some skills that some of us are just not capable of learning. And in those scenarios, I just ended up hiring a freelance. Because it was a lot cheaper than hiring a full-time employee. Now, this next challenge is a big one that flies under the radar. Unexpected expenses.

Think about it all of a sudden your computer breaks. And now you have to go out and get a new one, which can run you a few thousand dollars, leaving you in a position that you have to spend money that you really needed in running or growing your business. What I've done to overcome the challenge is set up a rainy day fund, so it can tackle some of these unforeseen issues that.

And finally the fifth challenge that is the toughest for most entrepreneurs is controlling lifestyle. See, I'm a big believer that if you don't have at least six months to one year of savings to pay for your lifestyle, and that includes paying for your rent, mortgage, groceries, and any other things that you need to survive, then you should make your entrepreneurial endeavor, a sidebar.

And continue to work a full-time job so that you can receive a steady monthly income. But if you do have money that can last you six months to one year and pay for your lifestyle, then my suggestion would be for you to taper that lifestyle to a bare minimum so that you're not living in a world of constant financial stress.

All right, now that we got that cleared up, let's get to the answers that all of you have been waiting for. What are the strategies that entrepreneurs can use to launch their business without any. I again, took the Liberty to jot down eight strategies, ones that I've not only used in my own business, but I have taught entrepreneurs for over the past decade.

So get a pen and paper to jot these down. All right, let's jump in now first, if you're an aspiring entrepreneur and you don't know what business you want to get into, and you're still trying to figure it out, then this first strategy is for you to launch a practical and low cost business, as opposed to a complicated and capital intensive.

So, what do I mean by a practical business basically starts something that isn't too intricate and that doesn't require a lot of funding think about businesses that focus on services, but yet they don't require a lot of overhead. For example, consulting, coaching, digital marketing, and copywriting are all businesses that can be launched with minimal capital investment moving onto the next strategy.

And this is one that I've done and still do over and over again. And that's wearing multiple. If you're unable to hire a team or employees, then you're going to have to do a lot of the work yourself. At least initially this strategy becomes a mindset shift because you will have to be ready and willing and able to learn new skills and technologies to run your business.

Yes, this can get overwhelming for many, but just like anything in life. Once you get enough exposure to it, you'll be able to tackle it because it becomes second. The third strategy is actually something all entrepreneurs should do before they ever spend a dollar in their business. And that's a research research and research.

I've seen it so many times that entrepreneurs start a business without ever understanding if there is a market demand or a market fit for them. I highly advise you to take your time, do your research, learning the industry, identifying what the problem is that you can solve and making sure that there are customers who will pay you for your product or service.

I'm telling you just because it's your business idea and you think it's great. Doesn't necessarily mean that everyone thinks it's great. So if you don't go out and speak to potential customers and get their feedback, then you're going to be spending money time and. Um, what can be a sure-fire failure? I always say BA student of the industry that you want to succeed in next, I suggest the strategy of exploring those free and cheap options.

If you don't have the funds to pay for equipment or hiring. And take a moment to identify all the things that are essential to your business and those that you can do without. So you can only focus on those essential needs instead of spending money on expensive software or equipment. Look for those cheaper alternatives today.

There's so many online avenues to find second and equipment at bargain-basement prices. And like I mentioned before, if you can't afford staffing, then upskill yourself so that you can handle those tasks yourself or outsource them to freelance. The next strategy is something we touched on when we discussed the challenges that you will face when you start a business without money.

And that's marketing. Marketing is one of the most important things that every entrepreneur should put their focus on when starting out now spending money on marketing and ads is not an option. Then you're going to have to look into organic marketing. Your website is a great first step for anybody to learn about.

Your brand and the products that you offer, it's a lot cheaper today to build a website than in years past, which you essentially can do yourself. Other organic marketing strategies is content creation, such as podcasts, YouTube videos, and social media posts. Again, it's time consuming, but it won't hit your wallet.

Moving on to the sixth strategy when starting a business with no money is partners. Sometimes it's a lot more successful and economical to go through a startup with a co-founder or even partnering with another business. Just think about it. Aside from the obvious that you'll have more people to do the work.

Statistically, partnerships have a higher chance of success versus going at it alone. Even more importantly in a partner. You can help with sharing resources, such as funding or sharing your network and leveraging the different viewpoints that all of you bring to the table. The seventh strategy is what I call launching a beta product or service.

Basically, you create what is called a minimum viable product, or in other words, M BP. And this is a proof of concept that can be developed at a very low cost. Since it isn't featured. The MVP can help you determine customer demand and market fit. And if you find that there is a need for this specific product, that's when you can start further developing it and adding some of those features that you left out originally, the best part of an MVP is that you can actually take the results of your sales and approach potential investors by showing them that there was a demand.

When I launched a tech startup, about four years ago, we built an MVP because it was cost effective and it allowed us to test the core functionality. Most importantly, it was a lot cheaper. And the final strategy when starting a business without any money is to continue to look for funding. There's no need for you to start a business and need money, but not look for some capital funding.

When you look to raise capital, your strategy should be to seek out the easiest. The first step in capital raising one-on-one is to speak to friends and family because they are the closest to you. And therefore the chances of you receiving a loan or an investment from them is much higher than going to an investor.

Another suggestion, and I give this with extreme caution is that if you have good credit, then you can apply for a small business loan or even use your credit card, but just make sure you have a clear plan on how you're going to repeat it. So you won't end up drowning in debt or paying high interest.

Basically what I wanted your takeaway from this entire episode and topic is that if you are passionate about being an entrepreneur, then learning. Learn the best strategies and learn from other successful entrepreneurs who started with nothing. See, the underlying point in this entire topic is that you can start a business without money.

It's just going to take a little longer. It will require you to put in more time and it will test your commitment to your dream. Always remember that business education is extremely vital during your journey. So continue to invest in your personal growth and development. The more you up-skill, the more likely you're going to succeed and avoid making costly mistakes.

So that'll just about do it for us today. Be sure to join me next week, because if you're an entrepreneur that has a lot of business ideas floating in your head, but you don't know necessarily, which is the right one to choose. Then don't miss next week's episode. Thanks for listening. And you stay classy, Business heroes.