imisidro
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You can start your business with no money -- but it will not be easy. But if you're willing to work hard, and be creative and willing to learn, you can surely do it.
You may find a tough time getting a loan from financial institutions without any capital of your own, even from SBA. SBA requires a number of factors to avail of their loans, and among them is equity investment (yes, they want you to show that you''ve got money when asking for their money) and collateral (see SBA Basic requirements http://www.sba.gov/financing )
If you cannot get loans, try to get a loan from your parents, family and friends. If they cannot give you any, use your credit card. Credit card requires no collaterals but are an expensive source of funds.
Otherwise, either downscale your plans and amount of capital needed; or wait until your financial situation improves.
I suggest you read the following books as well. Borrow them from your library or buy them from your favorite bookstore
- No Cash, No Fear: Entrepreneurial Secrets to Starting Any Business with No Money by Terry Allen
- Starting on a Shoestring: Building a Business Without a Bankroll by Arnold S. Goldstein
- The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything by Guy Kawasaki
It may help you if you could talk with a small business expert or free mentors to give you ideas on how to make your dream of starting a business come true even without money. Here are some places where you can find a mentor:
- Government Mentoring Programs such as SBDCs, which works with community colleges and local business development councils to offer mentoring programs http://www.sba.gov/sbdc/sbdcnear.html ; or the Women's Network for Entrepreneurial Training http://www.sba.gov/womeninbusiness/wnet_roundtables.html
- Volunteer programs such as SCORE http://www.score.org which is composed of mostly retired executives and entrepreneurs
- Formal mentoring programs such as Athena Foundation http://www.athenafoundation.org/programs/globallinks.html , Helzberg Entrepreneurial Mentoring Program http://www.helzbergmentoring.org/HEMP/ , or The Aspen Institute MicroMentor Program http://www.micromentor.org
- Professional organizations such as the National Women’s Business Council http://www.nwbc.gov/Mentoring/programs.html
- Industry and trade associations
- Local business groups, such as the chamber of commerce
- Local chapters of business groups |
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Wendy Jean
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My husband and I started our electrical company (residential and small commercial wiring) with one employee plus my husband back in August of 2005. We now have 10 employees plus my husband, and own 4 work trucks. While we didn't have capital either, I did have two parents with good credit willing to help us cosign on a small loan to buy a trailer and tools to get us started. We now have 15 builders. You don't necessarily have to have the capital depending on what type of business you want to start. If you buy a franchise then you need the money; if you want to start a day care center, you could get someone to cosign a small loan with you to help you get started. Then you pay the loan off, as you continue to grow. Your credit will build as you pay off small loans then before long you will not need a cosigner. Of course, you might not need one anyway depending on your credit score. Good luck to you. The main thing is to set your mind on what you want to do, write down your plan, and don't give up!! |
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Ivy likes Good Charlotte
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you need financial advice... |
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prince charming
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ok first off i would do a business plan, the next thing i would do is find out if theres a chamber of commerce or small business assocation in your are . they have free classes on how to prepare one. then once you do all that and you know how much money you need for operating costs you can go to the bank and ask for a small business loan.or they might be able to point you in the direction of investors |
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bluebell
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Get a professional business plan and your bank manager might be interested if you have a few quid in the bank and your credit rating is superb.
Remember that your bank will only be ready to consider lending you twice the amount you have in the bank. |
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just-dave
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You need capital or an investor, banks are useless, self employed really does mean "self" although you could get a loan if u have good credit, most businesses need money for advertising materials equipment, this may be limited if you are something like a mobile hairdresser or similar. Good Luck. |
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honker
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You have a service to sell, find organizations who has those needs. Most will front the funds if you ask tactfully, been doing it for years. |
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jsarahwilson
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UK banks operate something called Loan Guarantee Scheme small business Loans which have government guarantees to bridge the gap for businesses that have no other forms of guarantee. Up to around ÂŁ250k may be available - but it still needs to be a good business though! |
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Darwin C
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The anser to your question is discussed at some length in a business blog freewebs.com/dpcge/businessblog.htm
I also want you to look at another site which may asssit you in building a business from your home without any capital at all; direct your browser to:
http://ut.local.yahoo.biz/dpcglobalenterprises
The CEO of the company gets peoople set up in their own home-based business without any capital and you will not owe him a dime. He is a really nice gent. You'll like him, down to earth and all.
Hope it was helpful to you. |
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SELMA S
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If you don't have any money and idea is really good you could find some big companys to sponsor you if not that go to bank and tray to took money from them |
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apoets
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you will need some sort of money to start a business ,so
start very small and build up slowly or
try for a grant (link below might help)or
write a crackingly good business plan to impress a bank manager for a loan!but you will need to be pretty convincing that you can make it profitable-research research research! |
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dsclimb1
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just 1 really really fantasitic idea.
no money, if your idea is good then it will work either way. |
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emeraldisle2222
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I do believe that you do need money to start a business.
You are at a big disadvantage otherwise.
Well done to imisidro for such a comprehensive answer.
That is the real spirit of Yahoo Answers. |
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dels replies
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It's not easy. Keep on with your normal job for a while and do your own business as a part time hobby thing until you can get a bit established and a few clients,depending on what the proposed business is.You need a novel idea or product, a good sales,marketing pitch,and confidence in your own ability. Fully research the field you are entering so you will be aware of some of the pitfalls and competition you will run into. |
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Mike Sanders
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visit a bank for a business loan, make sure you have the answers to all the questions they may ask about your business, ie projected income. |
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Jim
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I started a business in 1995 like you under capitalised (a fancy way of saying "not enough cash") and struggled for ten years, when eventually I was worn out and gave up. If you have insufficient funds you soon get into overdrafts and they are costly, so you are working extra hard just to pay your debts.
Please try and find some cheap loan. Have you any friends that will trust you enough to give you an interest free loan, or only charge you a few percent? Good luck in your new venture. |
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Cindyxxx
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You could try dropshipping where you advertise the goods for sale and sell them at a profit and the company sends them to your customers then when you have made enough money buy your own stock off of them |
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JLSyn2007
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Have you ever considered having your own business in the wellness industry?
If you truly wish to invest in a business that will make you money, then please take a look at this proposal. All of the great rich men, such as Donald Trump, Bill Gates...etc. are now, or have been involved in network marketing. Synergy Worldwide is being launched in Europe this week. It has already taken Australia, Japan and Southeast Asia by storm. It has been introduced in the US and is growing. It was #8 in the list of Forbes 100 hotest new business opportunities. This is truly a once in a lifetime ground floor opportunity. Please take a look at the website and view the business presentation, it is worthy of a few moments of your time.
The company and the products are straight forward, nothing to hide, no strings attached.
Thank you for your consideration.
You may contact me if you have any questions.
Janet Sams
www.HealthyWay.MySynergy.net |
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