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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

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Allan Dib

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

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Last Updated on January 21, 2020

How to Increase Work Productivity: 9 Ground Rules

How to Increase Work Productivity: 9 Ground Rules

We all have those days when completing our assigned tasks seems beyond reach. With the temptation of social media, mobile games, and the internet in general—not to mention the constant bustle of people in the office—it’s easy to fall prey to disruptions and distractions at work.

So, what can we do about it? How to be productive at work?

While we don’t have a foolproof system that can completely eliminate disturbances and diversions, we do have 9 ground rules that can be applied to help give your productivity levels a boost.

Keep reading to find out our tips on work productivity.

What Does It Mean to Be Productive?

How to be productive at work?” is the age-old question plaguing employees and employers alike around the world. Regardless of where you work and what you do, everyone is always looking for new ways to be more efficient and effective.

But what does being productive actually entail?

Completing more tasks on your list or working longer hours doesn’t necessarily mean you’re being more productive. It just means you’re more busy, and productivity shouldn’t be confused with busyness.

Productivity means achieving effective results in as short amount of time as possible, leaving you with more time to enjoy freely.

It involves working smarter, not harder. It means refining processes, speeding up workflows, and reducing the chances of interruptions.

Productivity is best achieved when looking at your current way of working, identifying the bottlenecks, flaws, and hindrances, and then finding ways to improve.

9 Ground Rules on How to Be Productive at Work

1. Avoid Multitasking

Multitasking can give the impression that more tasks can be accomplished as you’re doing multiple things at once. However, the opposite is true.

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Research has shown that attempting to do several things at the same time takes a toll on productivity and that shifting between tasks can cost up to 40 percent of someone’s time.[1] That’s because your focus and concentration is constantly hindered due to having to switch between tasks.

If you have a lot of tasks on your plate, determine your priorities and allocate enough time for each task. That way you can work on what’s urgent first and have enough time to complete the rest of your tasks.

2. Turn off Notifications

According to a Gallup poll, more than 50 percent of US smartphone owners admit to checking their phones a few times an hour.[2]

Switching off your phone—or at least your notifications—during work hours is a good way to prevent you from checking your phone all the time.

The same applies to your computer. If you have the privilege of accessing social media on your work desktop, switch off the notifications on there.

Another good tip is to logout from your social media accounts. Therefore when you feel the urge to check it, you might be swayed because your page isn’t so easily accessible.

3. Manage Interruptions

There are certain disruptions in the office that are unavoidable such as your manager requesting a quick meeting or your colleague asking for assistance. In order to deal with this, your best approach is to know how to handle interruptions like a pro.

Be proactive and inform the people around you of your need to focus. Turn your status on as “busy/unavailable” on your work chat app.

If you’re on a deadline, let your colleagues know that you need to concentrate and would really appreciate not being interrupted for the moment, or even work from home if that’s a feasible option for you.

By anticipating and having a plan in place to manage them, this will minimize your chances of being affected by interruptions.

4. Eat the Frog

Mark Twain once famously said that:

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“if it’s your job to eat a frog, it’s best to do it first thing in the morning. And if it’s your job to eat two frogs, it’s best to eat the biggest one first.”

What this basically means is that you should get your biggest, most urgent task out of the way first.

We all have that big, important task that we don’t want to do but know we have to do because it holds the biggest consequence if we don’t complete it.

Eat the frog is a productivity technique that encourages you to do your most important, most undesirable task first. Completing this particular task before anything else will give you a huge sense of accomplishment. It will set the ball rolling for the rest of the day and motivate you to eagerly complete your other tasks.

5. Cut Down on Meetings

Meetings can use up a lot of time, which is time that can be used to do something useful.

You have to wait for everyone to arrive, then after the pleasantries are out of the way, you can finally get stuck into it. And sometimes, it may take a whole hour to iron out one single issue.

The alternative? Don’t arrange a meeting at all. You’ll be surprised at how many things can be resolved through an email or a quick phone call.

But that doesn’t mean you should eliminate meetings altogether. There are certain circumstances where face-to-face discussions and negotiations are still necessary. Just make sure you weigh up the options prior.

If it’s just information sharing, you’re probably better off sending an email; but if brainstorming or in-depth discussion is required, then an in-person meeting would be best.

6. Utilize Tools

Having the right tools to work with is crucial as you’re only really as good as the resources you have at your disposal. Not only will you be able to complete tasks as efficiently as possible, but they can streamline processes. Said processes are essential to a business as they manage tasks, keep employees connected, and hold important data.

If you’re the manager or business owner, ensure your team has the right tools in place.

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And if you’re an employee and think the tools you currently have to work with aren’t quite up to par, let your manager know. A good team leader understands the significance of having the right tools and how it can impact employee productivity.

Some examples of tools that could be used:

Communication
  • Slack for team chat and collaboration.
  • Samepage for video conference software.
  • Zendesk for customer service engagement.
Task Management
  • Zenkit for task and project collaboration.
  • Wunderlist for listing your to-do’s.
  • Wekan for an open source option.
Database Management
Time Tracking
  • Clockify for a free tracker.
  • TMetric for workspace integrations.
  • TimeCamp for attendance and productivity monitoring.

You can also take a look at these Top 10 Productivity Tools to Help You Achieve 10x More in Less Time.

7. Declutter and Organize

Having a disorganized and cluttered workspace can limit your ability to focus. According to researchers, physical clutter can negatively impact your ability to concentrate and take in information.[3] Which is why keeping your work environment well ordered and clutter-free is important.

Ensure you have your own system of organization so you know what to do when the paperwork starts to pile up.

Being organized will also ensure that you know where to find the appropriate stationery, tools, or documents when you need it. A US study reveals that the average worker can waste up to one week a year looking for misplaced items.[4]

Here’s a useful guide to help you declutter and organize: How to Declutter Your Life and Reduce Stress (The Ultimate Guide)

8. Take Breaks

Taking regular breaks is essential for maintaining productivity at work. Working in front of a computer can lead to a sedentary lifestyle which can place you at a higher risk of heart disease, diabetes, and obesity. Even a 30 second microbreak can increase your productivity levels up to 30 percent.

As well as your physical health, breaks are also crucial for your mental and emotional wellbeing. That’s because your brain is like a muscle, the more it works without a break, the easier it is for it to get worn out.

Ensuring you actually take your breaks can prevent you from suffering from decision fatigue. It can also help boost creativity.

Take a look at this article and learn why you should start scheduling time for breaks: The Importance of Scheduling Downtime

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9. Drink Water

Although we know we should, it’s easy to forget to drink enough water during the working day.

Many of us turn to tea or coffee for the caffeine hit to keep us going. However, like taking breaks, drinking water is essential for maintaining productivity levels at work. It’s simple and effective.

Not drinking enough water can lead to dehydration and also headaches, tiredness, and weight gain.

A good tip to avoid dehydration is to keep a water bottle at your desk as it can serve as a reminder to constantly drink water.

If you find the taste of water a little bland, add some fruit such as cucumber or lemon to give it a better taste.

You can also get more ideas on how to drink more water here: How to Drink More Water (and Why You Should)

The Bottom Line

The preceding 9 ground rules on work productivity aren’t the be-all, end-all. You and the company you work for may have other tips on how productivity is best increased and maintained.

After all, it’s something that can be perceived differently depending on the exact job and work environment.

In saying that, however, the 9 ground rules serve as a good foundation for anyone finding themselves succumbing to disruption and distraction, and are looking for ways to overcome them.

A good tip to keep in mind is that change doesn’t happen overnight. Start small and be consistent. If you slip up, just dust yourself off and try again.

Developing habits happens gradually, so as long as you keep up with it, you’ll soon start to notice the changes you’ve been making and eventually enjoy the fruits of your labor.

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Featured photo credit: Cathryn Lavery via unsplash.com

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