If we had it the way that we would like it, we would all have a pool of unlimited resources and money to pull from in order to start our business. Unfortunately, this is not the reality for the majority of us. There is good news though… it is possible to start a business without a lot of start-up capital.
If you are reading this, I am making a few assumptions:
- You have a great business idea
- You have thought this out and you are ready to commit to this and make your idea your new baby.
- Your business idea is unique enough and your concept is edgy enough to take out your competition.
If so, then continue, but if not, continue to read anyway….
1. Consider Partnering With Someone
You’ve heard the saying… “Two Heads are Better Than One”. This is very true in business. Let’s spin that a little and say that… “Two Financial Portfolios are Better Than One”. What I am attempting to describe to you is a concept called synergy. Synergy in its simplest form means that two people can do more together than both of them can do on their own. You can consider bartering services to get to where you need to be. In any partnership scenario, it is truly imperative to be transparent and that you have a solid, legally binding contractual agreement.
2. Do what is known as Bootstrapping
You might ask, “what the heck is bootstrapping”… Bootstrapping is the act of starting your business with virtually no money or outside support. Most bootstrapped companies are born from necessity and the owners must “sink or swim”. There are many success stories of bootstrapped companies that have grown to be highly successful, but it takes an intense drive to win. You must remember that you can win and you have to be realistic and know where to cut corners and “trim the fat”. The key to successful bootstrapping is to use guerilla and word of mouth marketing and active networking to get the word out about your business in a grassroots way. You can’t be afraid.
3. Use alternative funding sources.
Kickstarter, IndieGoGo, and GoFundMe are all sites that allow you to take your business idea before the public and get cash investments from hundreds and maybe even thousands of individual investors.
Borrow from your 401k
Ask Family and Friends
Research Small Business Grants
Contact Your Local SBA
*Side note… please make sure that you have a business plan before seeking funding sources*