How To Build A Start-Up Without Money
‘Money, money, money must be funny in a rich man’s world!’ These lyrics, written by ABBA ring especially true in the world of start-ups. Money is everything for start-ups. Many great business ideas get shelved due to the lack of funding. This, however, should not deter young entrepreneurs from starting new ventures. People are quick to assume that starting a successful business requires a lot of capital. Sure, not having a lot of capital can be a problem, however, there are ways around this dilemma.
Find innovative ways to source the cash you need.
Sometimes taking a loan from a bank or other investors is not an option for you. You can get funding through start-up fundraising. This fundraising can be done in creative ways that make sure you remain financially independent. It can be done by breaking into your savings, retirement plans, investments etc. Other ways to source capital for your start-up can be through angel investors. Angel investors are wealthy people who invest in start-up businesses in exchange for a stake or equity in the company. Crowdfunding is another way to source cash for the company. If you think your business idea is genuinely good, you can take this idea to the masses and if they believe in your vision they can also help.
Social media presence
In this day and age, a social media presence can make or break your company. Social media give you a chance to interact with your audience in turn allowing your business to gain a wider audience. Social media marketing is one of the most cost-effective ways to build a business. It provides you with a large return on investment. At the same time, it showcases your business or product to a wider audience. This in turn makes them potential customers.
A good team goes a long way
Finding the correct people for the job is something that will help establish your company in a great way. A start-up doesn’t just require experienced and well-connected individuals. The company needs enthusiastic employees that are dedicated to the cause of the company and will do the hard work necessary to fulfil the requirements. Once you form a team that can work in tandem with each other it becomes that much easier for the smoother working of the company.
Collaborating with well-known brands and influencers is one of the sure-shot methods to get a larger customer base for your company. The way this can work is by looking for businesses to collaborate with that are not your direct competitors. The collaborators, however, can help complement your business in some way. Collaboration is known to increase customer awareness, brand awareness, customer retention and customer value for both parties involved.
To Sum Up
There are many ways to start a business without capital. Perhaps the most important point I can bring forth is telling you not to procrastinate and waste time. No time will ever be as perfect as the present! No conditions will be perfect. However, you must make the best of your situation and circumstance and that is what will help you come out on top.
The best way to decide if your start-up does require an angel investor or start-up funding is by having a complete business plan. Your business plan should also include a One-Page Business Plan. I have developed a one-page business plan for all start-up founders and entrepreneurs. This business plan helps you ideate what you would like to achieve the following year as well as the activities you are willing to give up. It helps you to understand the shortcomings of the previous year as well.
About Devansh Lakhani
Director of Lakhani Financial Services, and a Chartered Accountant, he helps start-ups raise funds from his network of investors. He guides and advises start-ups to scale up by providing efficient sales, marketing, team building, and business management strategies. He has executed fundraising by block deals on the stock exchange and conducted IPOs and right issues on the SME platform to the tune of over Rs. 50 Crore. He is currently working with start-ups from various sectors to help them channelize their business models and investments.