Its possible to start a business without money or with little cash but you need to have the right ideas in order to get started.At the same time it requires a shift in the mind set .
Firstly when you begin the process of looking for new business ideas or opportunities you need to identify a gap in the market and come up with ideas on how you can fill that gap. A gap could be an unfilled customer need or a new invention yet to be brought to market.
After identifying a gap you need to establish a goal to create a venture that will fill that gap by looking for resources that will make your goal reality then you need to go out and look for those resources. Finally you come up with a business plan.
Principles and guidelines for launching a business
Below are some of the principles and guidelines that will provide you with a better chance of effectively launching a business with little or no capital.
1. Start with what you have
When looking to start a new business first of all you should take stock of what you’ve at your disposal by considering the following:
- Skills – what can you do?
- Experience – what have you done in the past?
- Knowledge – what do you know?
- Tangible resources – what do you own and what do you have access to?
You should think loudly and carefully about your responses to these questions then do as per your mind and remember to think a little bit about what you have at your disposal.In this process, be sure to write down your responses to these questions.
Your written responses will create a collection of artefacts that can be combined to create something interesting, novel and valuable in establishing a new business.
2. Take into account who you know
What you have needs to be combined with who you know for it to have real power. Take stock of the relationships you have with others, map out your network of connections and consider how your connections could enable you to use what you have more effectively.
Sarasvathy points out that the alternative means of venture creation advocates “stitching together partnerships to create new markets.” Relationships, particularly equity partnerships, drive the shape and trajectory of the new venture.
3. Invest what you can afford to lose
There is a big difference in your mindset if you start with the perspective that “I am investing this amount and I expect a 30% return” versus “I can afford to lose this much, therefore I will put it into the business and see if I can make it work”.
If you have only put in what you can afford to lose, you maintain flexibility in the business and minimise stress in managing it. If you are only willing to invest when you expect that you can get a specific return, there is a strong chance that you may never take the leap and launch the business you always dreamed of owning.
An example of this is the entrepreneur who refuses to leave a well-paying job until he finds an opportunity that he predicts will pay more, versus one who decides to invest a small portion of her savings and two years of her life in a project that she believes is worth that amount of time and money – irrespective of whether it will pay more than what she currently earns. She is living out the alternative entrepreneurial mindset.
4. Experiment and adapt
With this mindset, flexibility and adaptability are a competitive advantage. You succeed not by becoming too fixated on a single goal or outcome but by being responsive to changes in the environment.
Existing firms typically take longer to adapt than new firms because they have more incentive for things to remain the same and they have established routines and practices that reinforce the status quo.
New firms are not tied to the way things have always been done and thus entrepreneurs can benefit from shifts in consumer preferences or shifts in technology or changing legislation by realigning their businesses to take advantage of such developments.