The question of how to start up a business without any money is becoming a lot more prevalent these days. As financial conditions have become more difficult, a lot of people are considering ways to either make additional money or break free from the uncertainties of the job market completely. Regrettably, these same financial difficulties have left them with little disposable income to work with as they start their business enterprise.
It is my hope to give you some ideas of how to begin a business without any money. When attempting to start a business with limited resources, it is crucial to honestly evaluate the question of what you have available to work with. This is not merely a financial question, but it also looks at the other resources available in your life. This would include things like time, skills, talents, networking connections, etc…. When money is limited, these other resources will generally be the pool you draw from to build your business.
There are three basic areas a person might explore as they consider starting a business without any money. The first option is to create a business for yourself based around a skill or service that you could make available to others. It is from this concept that many lawn care, custodial, house cleaning and other such services come about. Other outflows of this possibility would include such things as freelance writing, photography or other contract services. The primary advantage of this type of business is the fact the person providing the service is the recipient of all income generated from that business. The primary disadvantage is that their is a high degree of sweat equity involved in getting a business of this type up and running. Since there is no established presence these businesses are often started through the door to door distribution of fliers or through the existing network of contacts that an individual already has.
Another commonly used approach to answer the question of how to start a business with no money is affiliate marketing. Affiliate marketing involves the marketing of products or services on behalf of another. In recent years many larger corporations have moved to an affiliate marketing model as a major piece of their overall marketing strategy. In this type of business there is typically no cost for becoming an affiliate of the vendor and compensation is earned on a commission basis as the affiliate produces sales volume. This type of business is commonly seen online and has been successfully utilized by thousands of people. The advantage of this type of business is the low start up cost and the broad market potential when this type of business is undertaken online. Some of the disadvantages include the fact that income is based on the personal sales of the individual. Another disadvantage is the sheer number of competing affiliates and the necessity to set yourself apart from other affiliates.
Network marketing is another option that many look to when looking at how to start a business with no money. Like affiliate marketing, network marketing involves the sales of a vendor’s product through individual marketing efforts, most specifically the personal networks of an individual. Start up costs on a network marketing business traditionally run between ten and five hundred dollars. The long term success of a network marketing business will depend upon the individual’s ability to develop a personal sales team of their own. The advantages of this type of business are the marketing systems that most companies will generally have in place for their distributors, the personal development training offered by these companies and the opportunity to earn income off of the efforts of others. The disadvantages are the high degree of interpersonal contact required to be effective and the need to create a unique identity apart from the other distributors who are marketing the same type of business. As a side note there are some compensation plans that are more conducive to creating income in a shorter period of time.
If you are considering how to start a business with no money, these are just a few suggestions. It is important to note that some of the greatest businesses in existence came from ideas generated in times of scarcity in the entrepreneurs life.
If you decide to start a business with no money, you need to begin with clearly defined goals and an action plan. Let Carl Willis teach you step by step the fundamentals necessary for building a business online.
Source: Carl Willis – ArticleAlley