Being your own boss, making all the decisions, and working hard to achieve your objectives – entrepreneurship is the ultimate professional dream for many individuals. But, as exciting as it seems, operating your own business is also quite challenging. 90% of new businesses fail. How difficult is it?
Entrepreneurs are also more worried and stressed daily than the general population. After all, when you’re in charge of the bottom line, every setback lands squarely on your shoulders.
The good news is that starting a business may be one of the most fulfilling, thrilling, and intriguing experiences you’ll ever have. If you’re aware of the hazards but want to be an entrepreneur, follow the tactics and recommendations in this handbook.
How to Become an Entrepreneur With No Money
1. Identify profitable startup ideas.
An idea is the starting point for each prosperous company. A business cannot be built without one. Here are some innovative ways to think about a product or service:
Find out what irritates your buddies.
What factors contribute to the profitability of a product or service? It offers a solution to a problem or source of annoyance that people are prepared to pay to have resolved.
With that in mind, ask your friends what they find frustrating.
Founders are constantly inspired by their frustrations. As an example:
- Travis Kalanick and Garrett Camp founded Uber after having difficulty finding a cab.
- Venmo (bought by PayPal) was developed by Andrew Kortina and Iqram Magdon-Ismail as they had difficulty paying each other back via check.
- Chris Riccobono founded UNTUCKit, a brand of untucked shirts, after becoming dissatisfied with how wrinkled and ill-fitting his ordinary button-down shirts were when he didn’t tuck them in.
As you brainstorm, encourage your pals to keep track of the things that irritate them daily. Then read through their listings for problems you might be able to fix.
Identify trends to future-proof your idea.
People require various items as the world evolves. For example, with the growth of Uber, Lyft, and other ride-sharing apps, there has been a desire for a third-party app that would inform you of the lowest prices at that exact moment.
Read trend forecasts for your sector or market, or look into trend-predicting magazines such as Trend Hunter and Springwise. Then consider, “If these forecasts come true, what tools will be required?” You want to be ahead of the competition.
2. Identify and focus on a growing category (or categories).
Stephen Key, a licensing specialist, and intellectual property strategist suggests choosing a category that interests you but isn’t excessively competitive.
“I avoid traditionally difficult areas, such as the toy industry. There are so many individuals working in that area, “He elaborates. “You will have an easier time licensing your ideas if you focus on expanding product categories that are also open to innovation.”
After deciding on a category, Key recommends researching all the items within that area.
- What are each product’s benefits, and how do they vary?
- What’s their packaging and marketing strategy?
- What do reviewers say?
- What are the potential improvements?
Once you’ve picked a product, consider questions like:
- Can I add a new feature?
- Can I personalize it somehow?
- What about a different material?
- What can be done to improve it?
3. Fill an underserved demand.
If there aren’t enough wheels, there’s no need to recreate the wheel. Many successful firms are founded by individuals who see a market need. For example, you may discover a scarcity of high-quality sales outsourcing. You may opt to provide this service to tech startups since you have experience in sales development and account management at early-stage sales organizations.
4. Make something better (or cheaper) than there.
It is not always necessary to create something entirely fresh. You’ll have a lot of clients if you can provide an established product at a lower price, higher quality, or, ideally, both. Even better, there is undoubtedly a current need.
Make a list of everything you use as you go about your day. Then go through the list again to see if there is anything you could do better.
Other suggestions
- Connect with other entrepreneurs by searching Meetup or Eventbrite for events in your local startup community. Networking with different businesses can not only help you create vital contacts, but it will also provide you with numerous ideas.
- Examine patent applications: Typically, patent applications are made public 18 months after filing them. Although we don’t advocate directly duplicating any innovations, perusing these documents might give you an excellent idea of where a particular space is heading.
- Conduct a brainstorming session: Invite three to five other entrepreneurs to a brainstorming session if you need to get your creative juices flowing. Request that everyone arrive prepared to discuss a specific product category or subject, such as, “What is your favorite type of X, and why?” or “Do you utilize anything to achieve Y?” What is your reasoning?” The responses may spark some brilliant ideas.
5. Validate your startup idea with buyer persona research.
You’ve got a great idea. Don’t give up your day job just yet. Before going all in, you must be sure that other people will desire your goods.
To securely assess the market feasibility of your product, begin by knowing your consumer persona or the real individuals you want to sell to. They won’t be interested in your product if it doesn’t meet demand, no matter how unique or wonderful it is. That is why buyer personas and market research are critical.
Once you’ve defined your target client, interviewing people who match the description should be a significant part of your study. Show them a functioning sample of your product and ask them what they like and dislike, how much they’d pay for it, how frequently they’d use it, and so on.
Create a landing page that outlines your product or service if you want to test market interest before developing anything. For early access, a free subscription, membership, product, discount, product updates, or any other attractive incentive, ask consumers to give their email addresses. Then, advertise the video using social media, sponsored search, and so on, and track how many visitors convert to sign-ups.
6. Start with a minimum viable product (MVP).
An MVP represents your tool or service’s most basic, simplest version. It’s functional enough to please early consumers and give you an idea of what has to be improved.
Assume you want to create an app that connects college students with virtual tutors. You could build a basic version, personally invite 150 tutors you discovered online to join, and then share the app’s link on the local university’s Facebook page. If you obtain a good number of sign-ups, it’s a good indicator that you should proceed. If you only receive a few, you should reconsider or start over.
Starting small with an MVP keeps your costs low at first while allowing for expansion when the product is proven.
7. Create a business plan.
A business plan is a written document that outlines your company’s objectives and the activities you’ll take to attain them. These are examples of a marketing plan, budgets, financial predictions, and milestones.
Your duty as an entrepreneur is to define your company’s mission, vision, and long-term and short-term goals. The business plan is an output of your work that serves to steer your company’s growth as you perform this type of strategic planning for your firm.
8. Continue to iterate based on feedback.
Remember that your MVP will most likely not be adequate to keep your business competitive in your chosen market segments, especially if you have huge plans.
The cycle has begun: Creating interest and demand (promoting the product), acquiring consumers (selling the product), assessing satisfaction, updating the product based on feedback… and so on.
Optimizing all aspects of this flywheel creates the necessary income to invest in the product, and investing in development generates greater interest from:
- Offerings that are more competitive to attract more consumers
- Customer satisfaction creates word-of-mouth referrals.
9. Find a co-founder.
When beginning a new firm, conventional wisdom holds that you should search for a co-founder. There are three primary benefits of having a co-founder.
- Many venture capitalist investors feel that whether or not numerous founders contribute to a company’s success. They are hesitant to support sole entrepreneurs. It is easier to obtain finance.
- You’ve got emotional support. Running a business is a challenging, exhilarating, and one-of-a-kind experience. If you’re riding the emotional roller coaster alone, you won’t have somebody to share the highs and lows with. A co-founder understands your situation and makes you feel less isolated.
- You have many contacts who have previously established a business. They may offer a variety of capabilities, expertise, and connections. Perhaps you excel in selling, but your co-founder is more technical. Choosing a co-founder with a complementary résumé is a great strategy to increase your chances of success.
However, there are several disadvantages to having a co-founder.
There may be disagreements. You and your partner will almost certainly disagree. A little healthy conflict is beneficial, but if you don’t find a solution fast, you’ll squander vital time and energy. Furthermore, you risk undermining your team’s morale.
You must divide the equity. If you are the sole owner of your business, you begin with 100 percent equity. You’ll distribute that equity over time as you hire additional people and acquire finance. Still, you’ll most likely be providing 0.005 percent to 35 percent to a single organization, depending on who they are. If you have a co-founder, you instantly give up 40-60% of your firm in one fell swoop.
It might be tough to locate one. Finding someone with the same business ideals, work habits, and complimentary personality might be complex. Furthermore, they must believe in your idea, provide the necessary talents, and aspire to be your co-founder in the first place. That is a lofty goal.
It’s worth mentioning that there are several examples of both successful single-founder firms and unsuccessful ones that collapsed due to cofounder disagreements. Make a decision based on your circumstances, not on conventional wisdom.
Where to Find a co-founder
The next stage is to recruit a co-founder if you decide you want one. First, look inside your network. Choosing someone you know or who your connections can vouch for is far less dangerous than choosing a stranger.
This notion also works in reverse: If they are a first or second-degree link, you have a higher chance of getting them to join you.
If you’ve exhausted your network, there are a few “co-founder matching” services you may use.
- Founder2be
- FounderNation
You may also meet possible partners by attending local entrepreneurial events.
7 Businesses You Can Start With Almost No Cash
Content provider
The money one can make depends heavily on one’s desire and skill. Sites like Fiverr allow writers, editors, photographers, illustrators, and videomakers to book gigs from businesses with various content demands. Alexandra Fasulo, a copywriter, told Entrepreneur that she started by scheduling little tasks for $5 a pop and, within two years, created a reputation and customer base that had her making six figures a year.
Personal creations
First and foremost, there are personal creations such as arts and crafts. Platforms like Etsy, eBay, and Amazon cater to creators and make it simple to monetize your work. For example, if you’re a painter, you might sell your works of art for as little as painting supplies and your own time.
In-home services
Start a babysitting business, a dog-walking or pet-sitting service, or anything like gardening or snow-plowing. Because services are intangible things, they do not require any upfront payment. And if you’re doing business in people’s homes or communities, you won’t need a physical headquarters.
Repair or skill-based services
If you have particular expertise, you might use it as the primary source of revenue for your company. For example, if you’re a handyman, you may target homeowners unfamiliar with house maintenance.
Resale
The concept of resale is straightforward: you purchase items and sell them to others. These items can be obtained through dropshipping or wholesale. Dropshipping requires you to ship straight from the manufacturer (and hence make a smaller margin), but it requires practically no beginning capital. You’ll need more money and room to start wholesaling, but you’ll finish with more power and money.
Consulting
Many employees consider becoming entrepreneurs only after gaining several years of professional experience. Consider your current industry and how much you’ve learned in that period. Up-and-coming professionals or startup business owners will gladly compensate you for your knowledge. Consulting is a low-cost service that may be helpful for a career prospect.
Micropreneurship
Of course, micro-premiership and shared-economy opportunities allow you to build your little firm. You might, for example, drive for Uber, rent out your property through Airbnb, or locate other businesses that use what you currently have.
Your lack of beginning cash will become less of an issue once your firm is up and running and making income. Profits from your firm can be reinvested or used to create another, more significant business.
Conclusion:
There are several ways to start a business with little or no money. You can begin by offering services, selling products you create, reselling goods, or consulting. Each option has its pros and cons, so choosing the one that best suits your needs is essential. With a bit of creativity and hard work, you can turn your small business into a success.
