Last Updated on August 15, 2020 by Shevy
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How To Start A Business With No Money?
A question you probably asked yourself at least once before is how to start a business with no money? Is it even possible to start a business without an initial investment. The short answer to that is yes! It’s definitely possible to start a business without startup capital.
Starting a business is not as complicated as it may sound to some people. In fact, I am going to break down the steps so simple for you, that you can get started with your business after reading this post.
A common misconception that some people have is that you have to spend money in order to make money. While that may be true for some, it’s not the same across the board.
What I mean by that is that it depends on the type of business you want to start. There are lots of businesses today that you can start without a single dollar. So exactly how to start a business with no money? Let’s dive into how to start a business with no money!
How To Start A Business With No Money In 2020:
Brainstorm Business Ideas
Start looking for problems people are currently experiencing, that you can solve. You can do this by networking inside Facebook groups that you are already a member of.
Or you can find groups to join, within an interest group that you would like to work with. Example: Health & Fitness, E-commerce, Real Estate, Coaches etc.
Don’t just join groups and start self promotion because more than likely you will be banned. Be sure to read the rules of the group and find questions that you can answer.
From there you can reach out to persons and pitch your services to them.
Pick A Niche
Picking a niche has less to do with the profitability of the business. It’s best to narrow down and pick a niche or a couple of niches you specialise in.
In business, you simply cannot help everyone. Therefore you only need to focus on a small group of people that you can serve. Your niche could be the Beauty and Fashion industries, Lawyers and Realtors just to name a few.
Now that you have a couple of business ideas it’s time to validate each of them. Continue joining more Facebook groups and online forums to see how many more people are experiencing the same issues.
Also, you want to start conducting keyword research and competitor analysis. This is where you look for loopholes in what is already being offered by the competition and that will be your competitive advantage.
Set up your business on social media first and promote your products and services to friends and family members. Ask them to share your pages and posts with others. Share your handles in Facebook groups as well but don’t be spammy.
Some groups only allow you to promote your products and services on certain days, under specific threads. While it may be totally against the rules in some groups, so always double-check before posting.
An alternative is to post on online forums like Reddit and Quora but you have to genuinely answer questions before sharing your links.
Now that you have some data to work with its time to create your buyer persona or personas. Evaluate your target audience by defining your ideal customer.
In order to create your buyer persona you need to collect the following information about your perfect buyer:
- Who are they
- Socio-economic background
- What are their problems
Now that you know who your ideal customer is, its time to start sourcing your products. If its a service based business, then its time to set up your service offerings. Create tiered packages for each service, with monthly pricing.
At this stage you also want to create a business and marketing plan. You don’t necessarily need to purchase any products yet, but you need to start researching potential suppliers and products.
Website And Branding
It’s now time to set up a website for your business using the right platform. These are some of the most popular ones that you can choose from:
- Woo Commerce on WordPress.org
For e-commerce websites, I highly recommend Shopify because personally, its the best platform for shopping. Their platform requires little configuration which makes it perfect for beginners.
If you are good with technology, you may opt for using Woo Commerce, which gives you more control. Remember to tailor your website experience and products or services to appeal to your perfect buyer.
Launch And Drive Online Traffic
You are now officially ready to launch your website with the right products or services using the best platform. Once your site is up and running you’ll want to drive online traffic by promoting it.
You can drive traffic by sharing your links in online forums and groups as mentioned above.
Set up Google Analytics and Search Console to track the performance of your website. Analyze data and make adjustments as needed. With Google Analytics you’ll have access to data such as your customer’s interests, their age and location.
As well as your overall traffic numbers, bounce rate, best and worst performing posts and so much more.
Google Search Console on the other hand summaries your site’s overall performance and organic traffic. It also lets you know when there are areas of your site that may be broken and needs fixing.
Scaling your business is optional at this point. But something you should consider in the future. When your business starts growing you may want to outsource some of the work by hiring freelancers.
This can be on a project-based basis, as opposed to hiring full-time staff. You may want to hire a bookkeeper, a project manager and a virtual assistant.
Still have uncertainties about how to start a business with no money?
How To Start A Business With No Money? Here are 3 business ideas to get you started today:
Print On Demand (POD)
Print On Demand (POD) is one of the easiest businesses you can start for free by selling your own custom products. It doesn’t require initial capital or inventory to get started. All you need to do is sign up with one of the POD platforms listed below or another one of your choice:
How it works is that you connect your store to their platform and you can select which products you want to add to your store. Products such as t-shirts, mugs, cell phone cases and hoodies can be added to your inventory.
You can use a free tool like Canva to create a logo and some brand designs to use on your merchandise. Or you can pay a designer on Fiverr $20 or less to create a design for you.
Once you have some products loaded on your website you will need to promote it. Your customers will place orders on your online store and their products will be processed and shipped by the supplier you chose, using your branding.
So if you chose Printful for example, orders will automatically be sent to them when the customer places the order. They will then print, pack and ship the order to the customer on your behalf.
After the order is shipped you will receive the tracking details. Your customers will receive the orders with your branding and packaging.
You can start a POD business from any where you are in the world and your clients doesn’t have to know.
Another business you can start online with no money is a drop shipping online store. This is similar to a POD store in that you connect your store to a wholesaler who will process orders on your behalf.
As a drop shipper your options are unlimited but it is highly recommended that you niche down. Perhaps you can find a manufacturer selling pet supplies so your niche could be pet lovers.
Locate at least 2-3 manufactures selling similar or the same pet supplies you want. This is incase one supplier runs out of stock, you’ll have a backup. There are some advantages and disadvantages of operating a drop shipping store so you have to do your research first.
You don’t want to start selling pet supplies, beauty products and home decor all at the same time either. This will only confuse your customers and make your life complicated. Also, it can be difficult to determine shipping and fulfilment times with so many different suppliers.
If Print On Demand and Drop Shipping is not for you, you can open a craft shop on Etsy. Over the years Etsy has changed up and now you can find a range of digital products on their platform.
Etsy is great for designers and crafters, as you can sell your craft and digital products on their platform. They charge a couple cents per product listing, but you’ll more than make it back with your first sale.
Even if you are a blogger with some templates and eBooks, you can list them on your Etsy shop. A main advantage of having a store there is that you have access to millions of users who are already using the platform to shop.
How To Start A Business With No Money? Learn how to start a profitable blog: HOW TO START A SUCCESSFUL SIDE HUSTLE BLOG3