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How to start a profitable business with no money



Are you excited to start a Profitable business?. Maybe you have an idea, or you’re just fascinated with the idea of launching and growing your own enterprise. Are you willing to take some risks, like leaving your current job or going without personal revenue for a while or going oversea's for luxurious vacations. But there’s one logistical hurdle stopping you: You don’t have much money.

On the surface, this seems like a major problem, but a lack of personal capital shouldn’t stop you from pursuing your dreams. In fact, it’s entirely possible to start and grow a business with almost no personal financial investment whatsoever -- if you know what you’re doing.
 Check out the steps below,

1.       Pivot. Use services to generate cash flow and fund a product-based business.

Starting a service-oriented business is easy: First, you provide services, and then you collect funds. But a product-based business often requires significant up-front capital to get it up and running. If you’re in this situation, consider selling services to generate cash flow and to build up funds for a product-based business.

2. Reduce your needs

Your first option is to change your business model to demand fewer needs as listed above. For example, if you were planning on starting a company as a consultant or freelancer, you could reduce your “employee” expenses by being the sole employee at the start. Unless you need office space, you can work from home. You can even do your homework to find cheaper sources of supplies, or cut out entire product lines that are too expensive to produce at the outset.
There are a few expenses that you won’t be able to avoid, however. Licensing and legal fees will set you back even if you cut back on everything else. According to the SBA, many microbusinesses get started on less than $3,000, and home-based franchises can be started for as little as $1,000.

3.       Get creative. Funding sources are everywhere.
Traditional entrepreneurship philosophy dictates that, to be successful, you should stick with one thing and not deviate from it. But desperate times call for desperate measures. If you are having trouble finding access to funds, there are a number of creative things you can do, such as the following:

Get a credit line. It is not uncommon for most startup businesses to rely on a line of credit.   The American Express Plum Card, for example, offers a 60-day term for payment rather than a typical 30-day term. Some banks or credit institutions offer credit designed to allow growth in the early stages of business. A word of caution: to keep from getting bogged down in debt when you are trying to expand a business, keep purchases to a minimum.

Use an Incubator. If you believe you have a solid idea and a workable business plan, you may want to consider a business incubator. Upon acceptance, these programs provide funding designed specifically to financially assist a startup company. Sometimes they offer office space or shared administrative services.  Most incubation programs are sponsored by local or regional economic development organizations, and some are sponsored by colleges and universities.

Find an Accelerator.  These are much like incubators in that they are designed to provide funding. However, an accelerator expects a rapid response to its investment.  If you are prepared and ready to hit the market quickly, this is a great option.

Crowdfund. Crowdfunding platforms are changing the face of capital, whether you’re growing a tech business, filming a movie, or selling jewelry.  Kickstarter and other crowdfunding platforms allow the public to invest a small percentage of money in return for a future buy-in.

4.       Differentiate yourself. Small things make a big difference.

Once you get to a million dollars in revenue, your odds of funding increase exponentially. Banks, for example, look at funding strictly from this perspective. Banks don’t care what kind of company you are—they simply look at your profit/loss statement and make a decision.

  • If you’re a profitable company with a million in revenue and good personal credit score, there’s a good chance that a bank will lend you up to $200,000.

    If you have some revenue coming in but need an extra boost to get to the million-dollar mark, make sure to consider every possible way that your company can differentiate itself.

     Do you have a letter of commitment from a notable investor? Do you have some revenue or a contract to get some revenue? Do you have valuable intellectual property with the potential to generate revenue? Differentiators like these can make the difference between getting funded and being overlooked by investors and lenders.

    The only real way to start generating revenue for your business is to roll up your sleeves and get to work. Despite what others may tell you, there is no easy shortcut to profit. But if you are confident you have a product or service that people want, you can propel your way to the top by pivoting, grinding it out, getting creative, and differentiating yourself.

    5. Outsource

    Your third option is all about getting funding from outside sources. I’ve covered the world of startup funding in a number of different pieces, so I won’t get into much detail, but know there are dozens of potential ways to raise capital -- even if you don’t have much yourself. Here are just a few potential sources for you:
  • Friends and family. Don’t rule out the possibility of getting help from friends and family, even if you have to piece the capital together from multiple sources.
  • Angel investors. Angel investors are wealthy individuals who back business ideas early in their generation. They typically invest in exchange for partial ownership of the company, which is a sacrifice worth considering.
  • Venture capitalists. Venture capitalists are like angel investors, but are typically partnerships or organizations and tend to scout businesses that are already in existence.
  • Crowdfunding. It’s popular for a reason: with a good idea and enough work, you can attract funding for anything.
  • Government grants and loans. The Small Business Administration (and a number of state and local government agencies) exist solely to help small businesses grow. Many offer loans and grants to help you get started.
  • Bank loans. You can always open a line of credit with the bank if your credit is in good standing.



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