In America alone, there are roughly 31 million entrepreneurs which make up over 16% of the U.S. workforce. That means that around 55% of American adults have started their own businesses and about half of that percentage went on to build another one. So, it comes as no surprise that many young adults are talking about starting a business from scratch with no money.
While tricky, that isn’t a completely impossible venture. In fact, with the right tips, you’ll be your own boss in no time.
In this guide, we cover five tips we believe can surely help beginner entrepreneurs quickly build their business empire without worrying much about funding and money. Let’s dive right in!
1. Understand What Being an Entrepreneur Is
Most of those thinking to build their own business have no clue where to begin or what plan they should follow. Many start out not having a business degree or even knowing the basic legal requirements of owning a self-created business.
As such, it’s highly important that you at least have a basic understanding of what becoming an entrepreneur is. Don’t worry! Since your start-up company is going to be rather simple at first, you don’t need to bury your nose in business books for long.
What we suggest is checking out any free online courses that cover the main bases of building a business from scratch. Surfing web articles and sifting through books in your local library are other budget-friendly options you could consider.
2. Brainstorm a Money-Free Business Idea
One of the tricks to business is getting started and learning right away. This means that starting a business from scratch with no money is sometimes the first step in your business journey. This means we need to come up with an idea that doesn’t cost money to begin.
This is the fun part: brainstorming what exactly you want to do. Chances are, if you’re reading this, you have a few ideas in mind already.
This section should help you filter these thoughts. Below you’ll find umbrella terms for a few business ideas that don’t require money (at first, at least) and instead capitalize on your skills.
Service-Based Business Ideas
Nothing beats making money off a service or skill set that you excel at. After all, not everyone can write great blogs or produce good music—and if you have the talent for it, why not make a business off of it?
Don’t limit yourself to simply handy skills either. Your knowledge and experience are just as valuable too. Many people need help with guidance, assistance, marketing, and the like. Capitalize off of them as well.
Creative Business Ideas
Creative minds highly benefit from building a business where they make and sell their products. More and more people are selling homemade scented candles, for instance, while others are selling handcrafted jewelry.
Wherever your passion lies, share it with the world! The greatest advantage of creative business ideas is that the government doesn’t regulate them. Additionally, you can create your products in big batches and not worry about them expiring.
You can even put your e-books for sale on a website! In fact, any digital products you have that you’re able to sell you can put up online as well.
Dropshipping Business Plans
Dropshipping is all the craze right now. That’s mainly because it eliminates the budget for picking up, packaging, and shipping the orders off to your customers. All you have to do is create the item and put it up on your online store.
Another huge advantage to dropshipping is that you don’t need to keep your products in big warehouses and spend money on storage. You can simply just keep inventory and make money off it one by one.
Social Media-Influenced Business Ideas
Every social media influencer has a store or a merch line that they’re benefiting from. Youtube stars and reality show big shots make money off these side hustles because they’re capitalizing on their audience.
Why not do the same? These people make money off affiliate marketing and advertising for certain products and services in their videos or blogs.
3. Choose a Suitable Business Plan
Now we reach the legal part of creating a business plan. This section is arguably the most important and it’s also the one that you need to focus on. Picking a legally-approved corporate structure from the beginning prevents many issues down the road.
Among the structures that are common with start-ups and small businesses are the following:
- S-Corps and B-Corps
- Sole proprietor
Many go with S-Corps or LLCs at first because they’re beginner-friendly and actually save you some money on tax reductions and write-offs. You can actually file an LLC with Drafted Legal and then elect as an S Corporation with your accountant. For an LLC on a budget, you can DIY file it with the Secretary of State in your state or you can use Drafted Legal to do the filing for you for a small fee.
4. Create Your Business Image
Your brand is who you are and it certainly matters. In other words, your business image is essentially what will draw customers toward your product line or service.
Keep in mind the following elements as they come together to form your business model.
Name Your Brand
Naming your brand is mainly about two things: what you’re selling and who you are. Choose a title that reflects both these features. You also need to make sure you can own your brand. Download the free guide to search for trademarks.
Launch the Website
Launching and creating websites has never been easier. Many platforms can now help you quickly design a website layout that suits your brand and image.
Create Your Social Platform
In addition to a website, you also need a social media platform that goes along with it. That includes Twitter, Instagram, Pinterest, and perhaps Facebook accounts.
5. Know Your Backup Funding Options
You may not need money to start, but you’ll eventually have to spend a few dollars after the business takes off. The saying goes, you need to spend money to make money—and it rings true to an extent.
We’re trying to say that having a backup funding option isn’t such a bad idea, even if you’re starting from scratch. Your options can include any of the following:
- Family or friend loans
- Small business grants or loans
- Capital investors
- Your personal savings account
Starting a business from scratch with no money isn’t that big of a feat at all. With the right knowledge and savvy business attitude, you can quickly become a budding, small-scale entrepreneur.
Make sure that you pick an idea and plan that suits your schedule as well as direction. The image you create should fit your self-made brand as well. Good luck!