A lack of personal capital may seem a definitive problem but it 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.
Why A Business Needs Money
- Associations, subscriptions, memberships.
- Employees and contractors.
Now how do you go about finding ways to finance these needs. Well, you have two options.
- Option One: Reduce Your Needs
Your first option is to change your business
model to demand fewer of the needs listed above. For example, if you were planning on starting a company of personal trainers, you can start 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.
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.
Your second option invokes the idea of a “warm-up” period for your business
. Instead of going straight into full-fledged business
mode, you can start with just the basics. You might launch a blog and one niche service, reducing your scope, your audience, and your profit, in order to get a head-start. If you can start as a self-employed individual, you'll avoid some of the biggest initial costs (and have easier tax laws to understand ) Once you start realizing some revenue, you can invest in yourself, and build the business you imagined piece by piece, rather than all at once.
Your third option is all about getting funding from outside sources. Know that 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:
- Government grants and loans.
With one or more of these three options, you should be able to reduce your personal financial investment to almost nothing. You may have to make some other sacrifices, such as not starting big, accommodating partners, or taking on debt, but if you believe in your business
idea, none of these losses should stand in your way.