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Published on December 27, 2019

How to Start a Small Business with Little to No Money

How to Start a Small Business with Little to No Money

How long have you been itching to start a small business? What’s holding you back?

So many people put off starting a small business because they think they need a healthy injection of capital to do it.

That’s simply not true.

So, how to start a small business?

Simon Paine, co-founder and CEO of the PopUp Business School, said,

“You can easily start a business with no money. When you’re starting, good enough is good enough. It doesn’t have to be perfect. Perfection will kill your business before you start because it costs money, and you don’t need to spend money to get going.”

Bootstrapping is a great way to build a business.

According to Paine,

“The bootstrapped business is the one most likely to survive. Why? Because you’ve built your entrepreneurial muscle by figuring out how to start for free, and you’ve engaged yourself in your own business. This process is critical, so don’t skip it.”

So once you’ve ironed out everything you need to get started—permits, licenses, registering your business name, opening a business account, creating a basic website, business cards, etc.—bootstrap what you can and outsource the rest.

Here are my eight top tips for starting a self-funded small business.

1. Start with You

If you’re wondering, What would be a good small business to start? You might want to take a closer look at what you have to offer.

  • What are your skills?
  • What are you most experienced in?
  • What knowledge or insight could you share that someone would pay good money for?
  • Who needs your help?

There is no right or wrong small business, just like there’s no guarantee that some will succeed more than others. I’ve watched startups with incredible products fail because they didn’t know how to market themselves.[1]

I’ve also seen pretty average products do exceptionally well simply because the founders knew how to connect with their prospects and deliver a one-of-a-kind experience.

Dmytro Okunyev, founder of Chanty, said,

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“The best way to start a small business with a small budget is to start with a problem that somebody else is having and solve it, rather than coming up with something new. That way, you already have your target audience right in front of you, and you can make your first sale immediately instead of spending a fortune on marketing.”

So, grab a pen and paper and jot down your skills, your experience, what you really enjoy working on, and who your ideal customer is. Use this as a starting point for figuring out what business you want to be in.

2. Now Talk to Your Potential Clients

Marie Farmer, the founder of Mini MealTimes, said,

“Talk talk talk to your potential customers. Do not spend a penny before you do this.”

Conversations lead to conversions. They allow you to get inside your prospects’ heads, to discover what they’re struggling with, and to devise a solution tailored to their needs.

So often, as business owners, we think we know our target market. We think we know what they want, where they consume media, what message would drive them to buy your product or service, and we couldn’t be more wrong.

I’ve met many entrepreneurs and small business owners who’ve invested thousands of dollars into getting their company off the ground, only to realize six months down the line that it’s all wrong. The business name, their offerings, pricing—all that money and time wasted, simply because they didn’t do their homework.

By talking to people, you build relationships and you get valuable feedback. Listen to what they’re saying and how they’re saying it; they’re gift wrapping your content strategy. You already know what they’re googling so you can create a video or article that talks directly to them.

This on-the-ground market research will also show you:

  • Whom you enjoy dealing with.
  • Where they’re based.
  • What their daily routines look like.
  • What their pain points are.
  • If they have an appetite for what you’re selling.
  • What they’re prepared to pay for it.

Then you need to figure out:

  • Who your competitors are.
  • What they’re doing that you can do better.
  • How you’re going to differentiate yourself.

The experience you deliver is your unique differentiator. Do it right, and not only will you win your first customer, but you’ll give them an experience that will keep them coming back for a lifetime.

3. Leverage Relationships

Networking is a lifesaver for small business owners. Building a circle of people who have experience in starting and growing a company is essential to your success.

They can be three or four steps ahead of you, but these are people that you can learn from and bounce ideas off of. They’ve been where you are, and they know what it takes to start a small business. Their experiences won’t all be the same, but that’s a good thing.

Richard Michie, CEO of The Marketing Optimist, shared his startup’s story:

“When I began, I sat at home and tried to learn how to run a business. It didn’t work, so I joined the Entrepreneurial Spark and then the NatWest Business Accelerator. Here, I was able to share my triumphs and disasters with others who were facing the same struggles. By sharing and listening, I became more resilient to the ups and downs of running a startup. Plus, I was able to build an even bigger network of valuable connections, which helped grow the business massively.”

The benefits of leveraging your entrepreneurial network include:

  • Finding new leads to pursue.
  • Re-engineering your mindset.
  • Building your confidence and alleviating your fears.
  • Easy access to free advice and support.
  • Help with goal setting and holding yourself accountable.

Take a moment to scroll through your phone contacts and email database. Note whom you can reach out to. These are the people you can leverage to grow your network and find new business opportunities.

4. Make a List of Everything You Need to Get Going

Now that you know what you’re good at, whom you want to work with, what their pain points are, and what you’re going to be selling, you need to make a list.

This is a checklist of everything you need to do to start your small business. Yes, you can google it. Or, and this is a better idea, you can reach out to your business network for advice on what to include on this list and whom to contact to assist you in getting things done.

I’m talking about lawyers, accountants, creatives, you name it. They’ll have these people on speed dial, and you’ll know they come highly recommended.

Once you’ve completed your list, Simon Paine suggests,

“Go through your list of what you need to start your business and see what you can get for free, borrow, barter for, sell something to get cash for, or sell your value before you create it. You absolutely can start a business with no money by following these principles.”

5. Be Ruthless with Your Spend

Whether you’re starting your small business as a side hustle or you’re investing your life savings into launching it, you need to be very careful about what you spend your money on.

Keep It Lean

Santiago Navarro, CEO and co-founder of Garçon Wines, advises to keep it lean in the early stage of launching your startup.

“Spend as little as possible, work hard, and focus on the main goal of developing a quality MVP (minimum viable product) to take to market for testing or selling.”

Don’t Pull a Salary

Danny Scott, CEO and co-founder of the CoinCorner, suggests not taking a salary.

“Throughout the first six months of our business, the founders took no salaries to help give the business the best chance to get off the ground and gain traction.”

If you don’t need to pull a salary, don’t.

Work from Home

You don’t need a fancy office. Duncan Collins, the founder of RunaGood.com, says,

“Work from a house. There are no business rates to pay and no rental or service charge.”

Plus, you can write off a percentage of your costs when tax season rolls around.

Barter Your Services

Do you have any skills, extra time, products, or services you could swap? Maybe you’re a copywriter and you need a designer to create your logo and business cards.

Barter your skills for their assistance. You could offer to proofread their content or recommend their services to any clients you get.

Maybe you’re opening a coffee shop and you need help with licensing. You could swap unlimited free cappuccinos for their assistance in acquiring and handling the matter. Bartering is a great way to achieve a lot without spending a cent.

How can you cut costs? Who can you barter services with? Go back to your list and add this information to it.

6. Think About How You Want to Position Yourself

Don’t be afraid to go after a premium client. In business, profit comes from the way you market yourself and positioning determines how much you earn. It allows you to attract a higher quality customer.

I’ll give you an example:

If you’re a professional musician and you position yourself as a subway busker, your “customers” will treat you as such and pay you accordingly. You’ll work long, hard hours to earn a small amount of money.

Conversely, if you position yourself as a professional concert performer, you’ll attract a very different customer and get paid accordingly.

Position yourself as a commodity and you’ll always compete on price.

7. Focus Your Energy Strategically

While business owners wear many hats, at some point, you have to be realistic about where you should be investing your time and energy. In the early days of starting a company, it’s normal to do everything on your own, to work crazy hours, and never get out, but this isn’t healthy for you or your business.

A study by Small Business Trends found 78% of small business owners report experiencing burnout in the first two years of running their company.[2] And if you’re too tired, stressed, and sick to work, you’re not going to make any money.

That’s why I always tell my clients to master one thing before moving on to the next. That could be one niche, one social media platform, or the first three modules of your online course, whatever.

But when you try to do too much, nothing gets done. Just ask Dani Mancini, founder and owner of Scribly.io:

“It wasn’t until I took stock of just how much I was trying to do that I realized I was setting myself up to fail. Rather than trying to do everything at once, I now focus on one thing at a time and commit to doing it well. That’s meant making difficult decisions like stopping our content strategy entirely until I’ve nailed other high-priority activities like prospecting and referrals (which have by far been more effective tactics).”

Knowing where to focus your energy is so important. Ask yourself,

What is critical to my success? What do I need to do now to guarantee growth over the next six months?

Once you’ve got this up-and-running then move on to the next project.

8. Outsource Whatever You Don’t Need to Be Doing

This leads me to my final point, outsource whatever you have limited knowledge in or isn’t a good use of your time.

Melissa Sinclaire, founder of Big Hair Beauty, said,

“Sometimes you may feel that your business can’t afford it and you’ll just do it all yourself, but most of the time you can’t afford not to.”

If you’re clueless about accounting, outsource it. If you know nothing about web development, Google AdWords, Facebook Ads, SEO, SEM, CRMs, or creating your standard operating procedures, outsource it to someone who does.

There are countless freelance websites where you can find talented professionals willing to take a fixed price for a fixed outcome.

Here’s a guide to help you delegate effectively: How to Delegate Tasks Effectively (Step-By-Step Guide)

The Bottom Line

Some of the most successful small businesses started as bootstrapped businesses at home, from coffee shops, and even college dorms.

They launched with a product or service that was good enough. They spent $100 on a website template, a domain name, and an opt-in form.

They regularly engaged with their market to uncover where improvements could be made, what worked, and what needed to go.

They set goals, called in favors, lived lean, borrowed equipment, bartered services, outsourced where necessary, and reinvested profits back into their companies—this is how you build a small business with little to no money.

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Featured photo credit: NeONBRAND via unsplash.com

Reference

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Allan Dib

Rebellious Marketer, Serial Entrepreneur, Business Coach, and #1 Bestselling Author

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Last Updated on March 31, 2020

How to Use Visual Learning to Work More Effectively

How to Use Visual Learning to Work More Effectively

Knowledge is essential to become successful in life, your career and your business. Without learning new concepts and becoming proficient in our craft, we cannot excel in our chosen careers or archive knowledge to pass down to the next generation.

But content comes in various forms, and because how we learn influences how much we know, we need to talk about learning styles. This article will focus on how to utilize visual learning to boost your career or business.

The Importance of Knowing Your Learning Style

Knowing your learning style enables you to process new information to the best of your ability. Not only does it reduce your learning curve, you’re able to communicate these same concepts to others effectively.

But it all starts when you’re able to first identify the best way you learn.

As a college student, I soon figured out that taking online courses without visual aids or having an instructor in front of me led to poor retention of concepts.

Sure, I got good grades and performed excellently in my online exams. However. I discovered that I couldn’t maintain this performance level because I forgot 80 percent of the course content by the end of the semester.

There are several types of learning styles known to mankind. To give an idea of how visual learning stacks up against other learning styles, here’s a brief mention of some of the different types of learning styles we have.

The four most popular types of learning styles are:

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  • Visual learning style (what this article talks about).
  • Aural or auditory learning style (learning by listening to information presented).
  • Verbal or linguistic learning style (learning that involves speech and writing).
  • Tactile learning style (learning by touching and doing)

But for the purposes of this article, we will be focusing on using visual learning to boost your career or business.

How to Know If You’re a Visual Learner?

When it comes to boosting your career, business (or education), a visual learner is one who would most definitely choose shapes, images, symbols, or reading over auditory messages.

I’m talking about preferring to read an actual map when navigating to a new place over listening to verbal directions. I’m talking about discovering that you actually have trouble remembering what your manager said at the meeting because there were no graphs or illustrations to support the points raised.

Most people who struggle with learning probably aren’t leveraging their best learning styles. The earlier you identify how your learning style can boost your success, the less struggle you will encounter with processing new information throughout your career.

However, visual learning in particular CAN 10x your career or business whether it is your preferred learning style or not. And here’s why:

Several studies have arrived at the conclusion that the brain retains more information with the help of visual aids. In other words, images are directly processed by our long-term memory which helps us store information for longer periods of time.[1]

While some lessons can be performed orally, several concepts can only make sense if you have an image with an explanation of sequences (i.e learning about the human DNA).

Visual learning does use a different part of the brain and visual cues are processed by the part of the brain known as the occipital lobe.

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By engaging more parts of the brain during learning, you’re able to have a fuller understanding of concepts and facilitate better interaction with your immediate environment.

How to Use Visual Learning for Success

Here’re 4 ways to use visual learning to boost your career or business:

1. Bring back the to-do list. Then add shapes and colors to boost productivity.

We live in an age where computers have taken over virtually every aspect of productivity and most human functions. But written lists are making a comeback, and with an endless number of important tasks to complete, having a to-do list of tasks in order of importance can improve your productivity.

While coming up with a list is initially challenging, adding colors and shapes to written lists that you personally write and manage gives you an extra layer of assurance and boosts aids recall so that you actually get stuff done.

I have tried this technique in my work as a registered nurse and discovered that adding shapes and colors to to-do lists helps me delegate tasks, recognize where more work is needed, and makes it easy to cross off completed tasks at the end of the day.

2. Add graphs, charts and symbols to your reports.

Yes, it seems like more work cut out for you. However, graphs enable you monitor the heartbeat of your business.

Graphs and charts help you trend your finances, budget, and pretty much any data overtime. With the help of free and premium software available on the market, it has become easier to take plain data and in a matter of seconds, have relevant information displayed in different shapes and images.

As an entrepreneur, you can make predictions and allocate funds wisely when you’re able to see whether your efforts are rewarded. You can use colors and charts to delegate actions to members of your team and track performance at the same time.

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And when broken down into monthly, quarterly, bi-annual or annual goals, graphs and charts communicate what ordinary text cannot.

3. Effectively brainstorm with mind-mapping.

Mind-mapping is not new but I don’t think it’s been talked about as often as we do to-do lists.

With mind mapping, you’re organizing information accurately and drawing relationships between concepts and pieces from a whole.

Think of a mind map as a tree with several branches. For example, the tree can symbolize healthcare while each branch stands for nursing, medicine, laboratory science, and so on. When you look at nursing, you can further branch out into types of nursing; pediatric, women’s health, critical care, and so on.

It’s an interesting relationship; the more ideas you’re able to come up with for your chosen subject, the deeper you get and the stronger the association.

Mind maps really show you relationships between subjects and topics, and simplifies processes that might seem complicated at first glance. In a way, it is like a graphical representation of facts presented in a simple, visual format.

Mind mapping isn’t only limited to career professionals; business owners can benefit from mind mapping by organizing their online learning activities and breaking down complex tasks into simple actions so that you can accurately measure productivity.

4. Add video streaming to meetings.

What if you could double the productivity of your team members by video streaming your meetings or adding flash animation to your presentation at the same time?

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When you offer video as an alternative method of processing information to colleagues, there is a greater chance of retaining information because we recreate these stories into images in our minds.

For organizations that hold virtual meetings, it can also be an effective way to enhance performance during if people can see their colleagues in addition to flash animation or whatever form of video is provided during the meeting.

Is Visual Learning Better Than Other Learning Styles?

No, that is not the point. The goal here is to supplement your existing dominant learning style with visual learning so that you can experience a significant boost in how you process and use everyday information.

You might discover that understanding scientific concepts are much easier after incorporating visual learning or that you’re able to understand your organization’s value when projected on a visual screen with charts and graphs.

The overall goal is to always be learning and to continue to leverage visual learning style in your career and business.

More About Learning Styles

Featured photo credit: Unsplash via unsplash.com

Reference

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