The words “business” and “entrepreneurship” have always been associated with money. Including money that you need to invest in order to start a business.
As a rule, astronomical amounts and complex financial combinations are spinning in my head, but in reality it is often easier and harder to start a business in the modern world, literally, without a penny. So, how
to open a business without seed capital?
Start with a simple question: "What kind of product or service do you want to sell, and who needs it?" In the literal sense - who in a particular city (perhaps a specific area) needs the intended product and in what quantity? Suppose you have not yet decided how to start your own business without initial capital, and believe that your potential buyers are the population of a particular locality aged 18 to 60 years. This is a common misconception, as the target audience needs to be defined more specifically. That is, it is necessary to clearly determine whether you are going to sell a product or service to students, housewives, or, for example, pensioners.
As a rule, further events develop as follows. There is a small chance that no one is selling your proposed product, most likely because there is no demand for it, and not because you just invented it. A more likely option is that a product or service is already being sold, and you can very well analyze where, by whom, and at what price a similar product is being sold. That is, before you start your own business without initial capital, you can understand how appropriate it is to engage in the chosen direction in this competitive environment.
Assume that such a risk is nevertheless justified. But how to open a business without seed capital?
After all, even in order to sell the intellectual fund, technical means are needed, that is, some minimum entry fee is needed, not to mention larger-scale events. Thus, we rest against the need to search for sources of financing, which may be:
- Funds withdrawn from the deposit or proceeds from the sale of something.
- Bank lending. In any financial institution, you can provide a loan for the development of entrepreneurial activity, but only if you prove by concrete numbers that it is worthwhile.
- Co-investors. If the scale of the proposed business does not allow you to start it alone, you can attract additional investors. Accordingly, in case of successful implementation of the project, the profit will also have to be divided in the established proportions.
As you can see, opening a business without seed capital is a difficult task, but it can be solved. And the main incentive to achieve the goal will be the achievement of financial independence. Indeed, you must admit that starting your own business from scratch, even if in the first months it will eat up all your free time and money, is much better than waiting all your life for another salary with thoughts on how to spend it most efficiently.