How to start your business with no capital

Many times, I hear a lot of people complain about not being able to start a business because they lack the capital to do so. This might be true. Or not. I agree that there are some business ideas that require a huge amount of physical cash to create and develop, like tech and so on. However, there are those that are either small scale (and so, not much in terms of actual capital is needed) or those that the capital needed is not cash but other resources.

So, here are my (tested and trusted) tips for starting a business when you are low on cash.

- Source for funding from your family members. Reach out to those family members that can raise some money for you, pitch your idea and to make it juicier, find a way to make profit for them too. This way, they are compelled to give you money since they stand to benefit from it.


- Start with the resources within your reach. Are you aware that there are people who started businesses on instagram with just their phones and internet. The same internet you use to follow up on celebrities and those instagram comedians, you can use it to open a business page and market your products. You will be surprised that with some diligence and commitment, people from far distances will make orders and pay for shipping/billing. Take advantage of social media.


- Pitch your idea to startup funders. There are some NGOs that have money set aside to fund new businesses in the spirit of promoting entreprenuership and wealth creation in Africa. Reach out/apply to their programs, pitch your idea and get funding. If you are a woman, you are in luck because there are still those organizations that focus on women empowerment through funding and other forms of brand promotion. Do your research.


- Think and re-think the business idea. Not all ideas are valid or market-ready. Is your idea worth pursuing? now?? You do not want to use up your savings on something that flops at the outset.


- Discover skills you have that can be monetized. Usually, the easiest kind of business to promote are service-based businesses. Skills like cleaning, baby sitting, proof-reading, editing, virtual assisting, personal shopping, and other professional services like legal work, accounting, etc. are services you can offer from the convenience of your home to people close-by, far and wide.


- Leverage on your network. Your network will include family, friends or even close colleagues. Tell them what you do and be serious about it. With time, they will not only patronize you but will begin to market for you. The funding you might have needed for marketing or advertising will come from the word-of-mouth efforts of those around you.


- Do some work for free. This applies in the area of perhaps offering personal services like event planning and co-ordination and the likes. If you get the job done to taste, you have converted clients and one or more evangelists for your business.


- Drop shipping. This is a system where "the retailer does not keep goods in stock but instead transfers his/her customer's orders and shipment details to either the manufacturer, another retailer or a wholesaler, who then ships the goods directly to the customer." Do you follow? You can get pictures of a product from a manufacturer or a wholesaler and market them at a slightly higher amount (which will be your profit). When an order is made, you receive payment, remove your profit and forward the amount to the wholesaler who then sends the goods directly to the customer.


VIP Bonus: Start where you are, with what you have. You can start with a small business you can afford, build up on your profits and pursue the ultimate dream that seems far-fetched.

All the best ladies,
Love,
Kech.

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