You have a business idea and you are excited to start a business. You are so exciting with the idea of running and growing your own enterprise. You’re willing to take some risks. You are going without personal revenue for a while or leaving your current job. However, the fact that you don’t have much money is one logistical hurdle stopping you.
This seems like a major problem on the surface. However, the lack of personal capital cannot stop you from pursuing your dreams.
In fact, if you know what you’re doing, it’s entirely possible to start and grow a business even on the Shopify platform with almost no personal financial investment whatsoever.
Why a business needs money?
Firstly, let’s see the reason why a business needs money in the first place. The different businesses will have different needs because there is no uniform “startup” fee for building a business.
Estimating how much you need before starting finding alternative methods to fund your company is the first important thing.
You should consider the following uses:
- Licenses and permits: You may need special paperwork and registry to operate depending on your region.
- Supplies: You need to buy the raw materials, computers and/or other devices.
- Equipment: You need the specialized machinery or software
- Office space: This is a huge expense with the janitorial services, utility costs, Internet, and whether to outsource back-office tasks, like payroll and invoicing.
- Associations, subscriptions, memberships.
- Operating expenses, including marketing.
- Legal fees: The fee when consulting a lawyer.
- Employees, freelancers, and contractors. You’ll need people on your payroll if you can’t do it alone.
Therefore, you have two main paths of starting a business with less money. the first one is lowering your costs and the second is increasing your available capital from outside sources.