How to start a franchise with no money

If you are willing to own a business of your dream but you do not have the resources or money to start it from the scratch, you have an alternate option left. You can buy a franchise business. The option of buying and starting a franchise business with no money can give you great entrepreneurial foothold.

How to Start a Franchise Business or System with No Money

Before you get into the act of starting a franchise, you must identify your own interests and skills as these are the aspects that would determine your selection. If you have no money and you still want to own a franchise, you can stand a good chance only if you convince a bank to finance you an initial amount. You would require to use the amount as your marketing budget. Go after the following tips and ideas before your step into starting a franchise with no money.

  • Since you are going to start your franchise business with no money and all your financial hopes rest with the bank, you cannot afford to buy a big and reputed franchise. Considering your interests, go for a relatively low-profile company that may require low deposit amount. But make sure that the company that you choose has a brand-name value. It should also offer you responsiveness and hands-on support in case you encounter trouble.
  • Make sure to inquire into the creditability of the company whose franchise you intend to buy. You should also know for how long the company is around. There are scores of franchise businesses that were short-lived. If you choose the franchise of a company that has low surviving prospects, your business hopes would be dashed.
  • You should hire the services of a franchise attorney who may review your documents and help you in the proper negotiation of your business deal with your franchise company. The attorney should have relevant experience of working in the related field.
  • After striking out the deal, concentrate on the expectations of the company. There are franchisors that want quick result. However, there are some companies that give proper time to flourish.
  • You should ask your franchise company if it would provide you with bookkeeping, advertisement materials and support to settle personal matters.
  • You are required to keep all your financial matters in order. Most of the franchise companies like to see the proofs of business experience and financial security before they sell their franchises to the aspirants. So, make sure you have both before you enter into any deal.

The above-mentioned ideas and tips would surely make the task easy and help you know how to start a franchise system.

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4 thoughts on “ How to Start a Franchise with No Money: Franchise Business and System ”

I am a student of chartered accountancy course. I belong to a lower middle class family and so i don’t even have a penny to invest. But i want to start a business of my own. Is there anyone who could suggest me what business to do. And I am still confused about my field of interests. Mr. Scott Wilson please if possible reply me soon.
Thank you.

Mr. SR,
Are you doing your chartered accountancy seriously? If yes then concentrate on it. Clear the CA and then you will get a good job. Then do job for 1-2 year, make some money and then start your own practice.
Think rationally.

I hope all is well.

I have been reading A LOT lately in regard to starting my own franchise. I just finished school may 2010, I currently work within a prestigious consulting firm, and the thought of business school is getting more and more unattractive. I have several friends within HBS right now and that is kind of the standard for people within my network… unfortunately the idea of investing so much time, energy, and effort into more schooling when I know exactly where my career objectives lay… takes the thought of HBS out of my realistic career objectives. I know for a fact that my ultimate goal is pursuing the franchising industry. I have several questions surrounding franchising and I would truly appreciate it if at any free moment you may have to reach out to me via email (if at all possible).

Hello Sir,
We have a small computer unit having 10 pcs with internet connection. Past we have done so many jobs i.e. Mobile form computerization (Hardcopy/ Scan copy to computer), eBooks, OCR, Data Entry (Voter Card, Family members counting, Insurance jobs, Telephone data index), Libary book scanning etc. There was some job from UK, England, Canada – which we had done through Indian media house. Where, we have loss some lacs of money due to fraud. Our vision is not a profitable business. Our vision to support so many un-employed persons in our area, as well as by getting some expenditure for our computer unit. We want a genuine contractual business on believe without investment. If there are needs any caution money, which may be deduct from our payments. We promise you our hard support and accuracy. If there anybody in this Earth – who are actually helpfull to support moneyless peoples, please help by providing some genuine work.
Thank you.

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By Eric Bell

Posted: September 14th, 2017

Category: For Beginners

Lack of funds does not have to be a hindrance to your dream of owning your own business. There are ways to start a business with little or no start-up capital. But it will take skills, hard work, and some solid marketing knowledge. Even if you are interested in pursuing a franchise opportunity there are ways to realize your dream when your bank account is less than adequate.

How to start a franchise with no money

Why you need money

Startup fees vary from business to business. Some companies require office or retail space, others you can get off the ground from your kitchen table. Certain businesses demand that you have permits and other licenses, all of which have fees attached. You also may need equipment, computers, and funds for other operating expenses such as marketing to spread the word about your new endeavor. And of course, you must pay for staff since you can’t run your business all on your own.

Of course, buying into a franchise system comes with expenses as well, including everything mentioned above. A franchise fee must be paid to operate under the franchisor’s name in addition to ongoing royalty fees.

Ways to save funds

To get your business off the ground with as little capital as possible, you have some options. First, determine if any of the needs that demand money listed above can be reduced. Maybe you can operate without office space or forego hiring help in the early stages.

Another option is to start out small and build up your business. Think of this as a warm up period. If you had hopes of offering multiple services, say you are doing a lawn maintenance business and you want to offer mowing, fertilizing and other yard work, you start by only mowing until you start to have some revenue coming in.

Finding financing for your dream

If your goal is to own your own franchise, you won’t simply be able to bootstrap your business in the same way that you could if you were going out on your own. But the upside of having to pay a bit more for the rights to a franchise system is you have their proven system to back you up and guide you to making your business a success.

The majority of franchisors offer financing for prospective franchisees. Start by investigating what your options are for financial assistance from the franchisor. It’s likely that each franchisor will differ slightly in what they do. Some may offer a loan with a simple interest rate and no principal, but it has a balloon payment in five to 10 years. The franchisor may also have financing that only covers certain portions of your startup expenses, say the franchise fee or equipment. Some franchisors may also have relationships with equipment companies to lease you the necessary equipment.

The key to securing assistance from a franchisor or a bank loan is good credit and your ability to pass all of the other financial requirements. If the franchisor thinks you are a good bet to help them expand their business, they will most likely offer you financial assistance.

Other financing options

If the franchisor doesn’t come through in terms of financing, or if what they offer doesn’t cover all your needs, there are other ways to find the money for your business. From second mortgages or home equity lines to bank loans, from loans from the U.S. Small Business Administration (SBA) to veterans’ loans, there are several avenues you can pursue. Recruiting family and friends to lend capital is another option, as are crowdfunding, finding a partner who has ready money or borrowing from yourself against your retirement (otherwise known as Rollover for Business Startups [ROBS]).

If you do opt for financing outside of the franchisor, following these tips can help you secure the money you need:

Assess your financial situation and determine what you can afford to invest. Consider talking to a financial advisor to assist you.

Find a bank or lender that has experience not only with small businesses but also with franchises as well.

Explain your financial situation in full. Hiding information will not help you with a lender.

Complete all the necessary paperwork as fully and neatly as possible.

It is possible to start a business without a lot of capital. The key is perseverance and a willingness to explore every angle.

How to start a franchise with no money

Hopefully, you’re not reading this article with the expectation that I’m going to share a big secret about buying a business without any money.

Unfortunately, I don’t have any tips for that, and I’m not going to be able to tell you that you can. Yes, I get a lot of calls and inquiries from people that really want to buy a franchise; they have the passion and are ready to work hard, but they don’t have any capital. Bottom line–you need capital to purchase a business! Truth be told, you need capital to start a business as well, but there’s no exception to capital requirements in the franchise world.

If you consider the investment capital you pay for a franchise, you’re receiving anything from the ability to use a recognized name and trademark that has local, national, and sometimes international recognition, a website built and maintained for you, training/coaching, operational support, and, depending on the business, a full call center and payroll department. You’re not going to be able to get any of that without putting some of your own money on the line.

Here are two options you should consider when looking for opportunities to raise capital to purchase a franchise:

Leverage a 401(k)

Thirty years ago, a few top attorneys that were intimately familiar with tax law created a program based on the rules of tax law that enable entrepreneurs to leverage the funds in their 401(k) to purchase a business, and even pay themselves a salary during the startup period–penalty free. This is an excellent option for people that are used to having a regular salary. It’s difficult to leave a steady and predictable income to run a business that only pays based on sales or commissions. This may be just what a person needs to take the leap. I also favor this option because it is extremely flexible. It allows the purchaser to decide how much of the 401(k) they would like to leverage, including a minimal amount to put a security deposit down on a Small Business Administration (SBA) loan. Saving for retirement is both smart and necessary, but investing in oneself before retirement should not be easily dismissed. While I absolutely recommend this funding approach, it’s critical that you use a reputable company to be the administrator of this program, as it is complicated tax law and must be executed by an expert.

SBA Loans Â

The SBA 7a program is a government loan program that loans millions of dollars each year through various lending agencies, for people that want to purchases a new business or expand an existing one. Individuals can qualify for $50,000 up to $5 million. You will need a FICO score of 680+, be able to put 20% to 30% down on the borrowed amount, have a written business plan, three years of tax returns, and possibly some collateral. Most franchises are already registered with the SBA and have a written business plan, so securing this loan for a franchise can be easier. SBA loans can be an excellent option since the SBA has zeroed out fees to borrowers on SBA-supported loans under $150,000, which helps traditionally underserved segments of the population like women and minorities. The rates are also quite good! There are other SBA loans than the 7a program that should also be explored.

There are several other opportunities available such as secured and unsecured loans, based mainly on credit score and collateral (property, equipment, investments, etc.). These types of loans help with leasing equipment for your business or funding your payroll. Microloans are gaining in popularity, as well as loans and grants being given at the city and state level for economically depressed areas.

So while you may not be able to buy a business without some capital investment, there are opportunities to gain access to capital using resources that you haven’t considered or haven’t tapped into. Partnering with a friend or family member can also lessen the burden. Turning something into nothing is quite a feat, but turning a small something into a dream is certainly possible if you have the right tools.

Nancy Williams earned a degree in sociology from UCLA with a specialization in urban studies and business. Her first business was a partnership in a small record label right out of college. After working with a few tech startups, she concluded her career in the corporate world with 14 years at Sprint, a majority of that tenure as a director in customer and sales operations. Nancy started NValuable Franchise Consulting, in order to provide free consultation, relevant insight, pertinent and candid feedback to her clients, so they are able to confidently purchase the right franchise. As a result, her clients achieve financial independence and a positive, enduring impact on their families and local communities.
www.nvaluablefranchiseconsulting.com/Â Â https://twitter.com/N_Valuable

By Eric Bell

Posted: August 8th, 2017

Category: For Beginners

How to start a franchise with no money

Updated March, 2020

How to start a franchise with no money

Are you looking to buy a franchise but aren’t sure you can handle the costs involved? It’s true, an average middle-class salary alone probably won’t be enough to make your dream a reality, but that doesn’t mean starting a franchise is impossible even on a limited budget. You just have to know where to find the assistance you need.

Franchise Start-Up Costs

Start-up costs vary widely and can range from as low as $10,000 to more than $1,000,000. A big factor is whether or not it will be necessary to own or lease real estate for your business. The required costs for opening a franchise are detailed in the franchisor’s Franchise Disclosure Document (FDD). Item 5 contains the initial or franchise fee – the cost to join the franchise system – which is typically between $10,000 and $40,000. Item 7 lists additional start-up costs required such as real estate, equipment, inventory, signage, business licenses, and insurance. You will also want to include a budget for professional fees for accounting and legal advice.

What Can You Afford?

In order to determine what you can afford to invest in a new business, you need to have a good understanding of your current finances. You can start figuring your net worth by compiling a balance sheet that lists all assets and liabilities. Some franchise experts believe you should not invest more than 15% of your own money, but this percentage may vary. Seeking the consult of a financial advisor is wise because they can help you determine how much of your own money you can afford to invest based on your specific financial situation.

Unless you are interested in a low-cost franchise, you will likely need to borrow the majority of the funds to purchase your business. In general, lenders require you to provide 20-25% of the total investment. For example, if you have $50,000 to invest, you will want to research franchise opportunities in the $200,000 range. Before approaching any lender make sure you are current on all bills, correct any mistakes on your credit report, and be prepared to explain any blemishes.

Traditional Bank Loans

Borrowers with good credit and collateral may be able to get a traditional loan from a bank or credit union. Most lenders are more likely to offer financing for a franchised business because they are associated with an established brand that has been proven in the marketplace. However, if you are interested in investing in a lesser-known brand such as an emerging franchise or don’t have a stellar credit rating or collateral, a traditional lender may not be an option and you will need to look elsewhere for funding.

Franchisor Assistance

One of the first places to look for financing assistance is to the franchisor. Most franchisors offer debt financing and will back either all or part of the loan. These loans may be set up in any number of ways, so be sure to check with the franchisor regarding the specific terms and repayment schedule. Some franchisors may also be able to assist with leasing necessary equipment which is often a large portion of the start-up costs.

Certain franchisors offer incentive programs for veterans, minorities or first-time franchisees including a discount on the franchise fee or other costs, or special financing assistance. Be sure to check with the franchisor about any programs they may offer if you fall into one of these categories. Some franchisors may also have relationships with a franchise financing company or one that matches borrowers with lenders such as BoeFly.

SBA Loans

It’s often easier to qualify for a Small Business Administration loan than a conventional loan, especially if you have an insufficient down payment or absence of collateral. These loans are still made by a bank or other financial institution but are guaranteed by the SBA and usually involve longer repayment terms and carry lower interest rates. SBA approved franchisors can offer expedited application processing to potential franchisees.

Ask the franchisor if they have a current agreement with an SBA approved lender. If not, you can contact your local SBA office to find one. In addition, the SBA’s Veteran’s Advantage program offers special incentives for small business loans to veterans of the U.S. military.

Borrowing From Yourself

If you have retirement savings, it’s possible to borrow from it to start a business. Rollover as Business Startups, or ROBS, allows you to use money from an IRA, 401(k) or 403(b) to pay the initial or ongoing costs of a franchise business. Though there are typically no penalties or interest, you will incur a tax liability on the money you withdraw from a retirement account.

One way to avoid tax penalties is to open a securities backed line of credit instead, which is a loan that is secured by your own investments and doesn’t require you to remove money from your retirement accounts. Or you may opt to take out a home equity loan on your property. Although these loans will help you avoid borrowing money from others, it does put your home and savings at risk if you can’t make a go of the franchise, so should be carefully considered.

Thinking Outside the Box

When more conventional lending sources can’t produce enough cash to fund your franchise start-up costs, you may need to look beyond traditional methods. There are many new online lending from companies such as Kabbage and On Deck who offer more options to those who don’t qualify for other types of financing. However, these lenders may not be able to provide enough financing to cover all of your start-up costs, depending on how much you need.

An investor such as family member, friend, or business partner may be willing to offer you funding as well, although allowing others to invest can come with some strings attached. Investors may require the ability to make decisions about the business and most will expect a return on their investment, which will cut your profits at first. Still, it may be worthwhile to take on investors if it allows you to get the franchise up and running.

No matter what kind of financing you choose, it’s important to get all the facts in advance so that you’re not caught off guard when it comes time to repay loans or investors down the line.

A limited budget does not have to mean postponing or giving up your plans to become a business owner. By finding the right financing options to meet your needs you can get started buying a franchise now and take charge of your future.

Launching a business can be pricey, but there are affordable ways to start.

by Kylie Ora Lobell
updated February 25, 2021 · 3 min read

Entrepreneurs have many options for starting a business, thanks to the internet and niche market opportunities. Many of these businesses are low-cost or completely free to launch.

From drop shipping to producing handmade goods, here are some ideas worth considering if you want to start a business with no money—or with as little money as possible.

How to start a franchise with no money

Drop Shipping

Drop shipping came on the scene thanks to the rise of Amazon. It involves buying products from a business and storing them for said company. Then, once a customer makes a purchase online, the drop shipping company ships the product directly to the customer.

For example, you could connect with a baby clothing company, stock their merchandise in your garage, and then ship it to customers when they make an order. U.S. e-commerce sales are on the rise, so there’s a lot of opportunity for aspiring drop shippers.

Handmade Goods

In terms of affordable business ideas, if you produce handmade products, you could sell them on sites like Etsy, Amazon, and eBay. “You’d only need materials and skills,” says Pauline Orr, a website developer and blogger at Pink Pursuits.

Orr recommends selling pet care products since pet companies are often recession-proof.

According to the American Pet Products Association, Americans spend $60 billion on their pets per year, so you can market your handmade pet products or “create an online pet boutique with drop shipped items,” Orr suggests.

Affiliate Marketing

One way to start a business with no money is to blog or post on social media and then sell your audience products through affiliate marketing. Michael Miller, CEO of VPN Online, says, “If you’re good at selling stuff, then this is for you.”

All you do is sell items using a unique link, and then when your audience clicks on the link and purchases the items, you get a percentage of the sale. “With this business, all you need is time, effort, and the power to convince people,” Miller says. “[There isn’t much] required in terms of money.”

Service-Based Business

Another affordable business idea is to tap into your own skills and see if you can profit from them through a service-based business.

For instance, if you’re a web designer, you could build websites, if you’re a writer, you could create content, and if you’re a photographer, you could take people’s headshots.

“These businesses are cheap to start because people are paying for your time and skills, which doesn’t require upfront costs for product creation,” says Blake Stockton, senior business analyst at FitSmallBusiness.

Cleaning

By investing in some supplies, you could go into business cleaning people’s homes and businesses. You may even be able to use clients’ supplies, suggests Brenton Harris, owner of DIYCleaning.co.

According to Harris, you could start a commercial cleaning business for as little as $500 to $1,000.

“The franchise route isn’t the only way,” Harris says. “It’s a particularly good time for a cleaning business since cleanliness and sanitation are in the spotlight. A cleaning business is an essential business right now.”

Used Books

Another alternative is to sell books, just like Jeff Bezos did when he was starting Amazon. If you don’t read your books anymore, then list them on eBay, Craigslist, Amazon, and Facebook Marketplace.

“You don’t need a lot of money to begin,” says Sonya Schwartz, founder at Her Norm. “Just use whatever books you have as your startup capital.”

Funding Your Business

While it’s possible to start a business with no money, having some funding will help you get things up and running even faster.

You could save money from your regular job, take out small business loans from the government, or crowdfund by asking friends and family for help—and even strangers through online crowdfunding platforms.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners.

Want a Profitable Franchise? Consider These 10 Companies

How to start a franchise with no money

Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here’s how we make money.

For aspiring entrepreneurs, joining a franchise is an excellent opportunity to become a business owner while mitigating much of the risk involved in starting a business from scratch. That’s because franchise advantages include a proven business model, name recognition, and vendor and supplier network, which cuts out a lot of the work involved in starting a business from the ground up.

Of course, joining one of the most profitable franchises is a particularly safe bet for aspiring entrepreneurs.

Choosing a profitable franchise

Determining how much money you can make by buying a franchise depends on a number of factors, but there are a few boxes a potential franchise should tick to ensure that you have the best possible chance of turning a profit. For example, the franchise should appeal to your local demographic, have a proven support system for franchisees, and have a strong reputation generally. Nationwide number of locations and annual revenue are also good indicators of whether a franchise can be profitable for you.

According to Franchise Direct , the best way to determine a franchise’s future profitability is by analyzing Item 19 of the franchise’s franchise disclosure document (FDD), which outlines the business’s financial performance. It’s a good idea to consult an accountant or lawyer, who can help you crunch the numbers. Of course, turning a profit also means mitigating debt, so you should only consider the franchises whose initial franchise fee and upfront investments are doable for your current financial situation—and this, too, should be a conversation you have with your lawyer or accountant.

Clearly, determining whether a franchise will be profitable for you is a subjective activity. But with that in mind, there are several franchises out there that meet all those general requirements we mentioned, and which are well worth looking into.

How to start a franchise with no money

Grow Your Business, Not Your Inbox

How to start a franchise with no money

Let’s make it clear from the start: Can you or can’t you start a business without money?

Yes you can, however, it is not a path that everyone wants to travel. These stories of great companies emerging from nowhere in penthouses have many for minor that are not told to make the entrepreneurial path seem more romantic. However, all these companies required years of effort, shortcomings, a lot of nested work and are only a handful of the thousands of companies that are created every year in the world.

So if you think that the entrepreneurial path is your thing, but you don’t have money, maybe this will help you.

You can start a business with little or no money , but that’s not the same as starting without resources. In fact, the more resources you have, the less money you will need. By resources we can mention some such as intelligence, imagination, social circle, experience, studies and knowledge in general, the time available, the ability to connect seemingly unconnected points, the ability to see opportunities where no one else finds them, manual, sports, artistic or physical skills in general, intellectual skills, health and so on, a long etcetera.

It all starts with an idea

Don’t try to discover the black thread at first. There are formulas that are already winners; take one and innovate on it: cheaper, luxury, better service, personalized, simpler, prettier, faster, at home, in an application .

Take into account that then you will have to adapt that idea to the immediate and make it work exclusively with the resources you have. I mean, keep it simple at first.

The plan

I suggest you contain:

  • Short and specific description of the business. Only a paragraph, but if you can a line, the better. The requirement is that anyone who reads it instantly understands your product or service.
  • Simple budget. That is, how much money do you have and what other resources do you have, such as time, knowledge, experience, contacts, potential partners, potential clients, and more.
  • Immediate actions under the given budget.

Financing means

If you really don’t have any money, there’s only one way to start: ask for funds or work to get them.

If you already have experience in the field in which you want to undertake, then you can ask and you have these financing options .

Friends and family: Take into account that “clear accounts, long friendships.” I assure you that you do not want to ruin your interpersonal relationships for money issues.

Crowdfunding : Crowdfunding platforms. If you don’t know about it and you think your idea won’t be attractive enough, you should do some research on the crazy projects that have seen the light of day in this way.

Government Support: Look for small business financing opportunities from the state or federal government for startups. There are currently many plans for it.

Private financing: Banks, finance companies or lenders. Just be careful what you sign, as a variable or unfavorable interest rate can kill your project before it starts. In fact, this type of financing is recommended only when you have demonstrated that your business works and produces enough profits to pay the credits obtained. That is, to scale the business.

Angel investment: There are networks of high-risk investors that put the seed capital of promising companies or projects. Do some research on the internet as there are continually calls for competitions to obtain these funds.

And if you do not have a way to access any of the above options, you always have yourself, the source of financing that is never lacking is YOUR OWN JOB . In other words, don’t wait sitting with your hand outstretched to see who will take pity on you. Find a preferred job in the field where you want to start your business. In this way, you will gain two things, invaluable experience that you can apply in your future business and money to finance it.

Start small by thinking big

When starting a business there is no money to reach. The more you have, the more you spend, so keep it as simple as possible. Adapt your business model to avoid as much fixed costs as possible (avoid unnecessary rents, salaries and services). Make the internet your store, your school, your marketing center, your means of contact, everything.

Make a list of the things that will be essential for your business and another of the things that you could get for free, do them on your own or exchange them with others who have what you want and who want what you can contribute.

This path may take you some time and you may have to learn various digital skills, but that will make you grow as a person, as an entrepreneur and in the future as an entrepreneur.

Sale and adjustment of nuts

Start with your natural market, that is, all the people you know, family, friends, former coworkers, etc. Send a WhatsApp to each and every one of the contacts in your agenda to offer your product or service, make your first sale and don’t forget to ask for feedback on the service and quality of what you offer. In this way, you can start making the corresponding adjustments.

Final thoughts

  • Low costs : Regardless of the size of your venture or business, you must keep this idea as a mantra. Keep costs low both financially and in time and effort.
  • Budget reserve : Have a “little save” that allows you to cover your expenses and those of your business for at least six months, which is the time in which you should have reached your point of equilibrium.
  • Regime before the Treasury : You can start as a natural person and the moment you see that your business hits, you can change to a legal person.

Will you make a lot of mistakes? Of course (and more than you think). Each and every one of your steps will have to be corrected and you will need to take others that had not even crossed your mind. But don’t worry, it’s natural. Just adjust and keep moving .

It takes money to make money. That’s the stark reality of making a foray into the franchise ecosystem. You need at least some savings for the franchise fee, and a little working capital to see your franchise through its formative months. It can feel challenging to think of how to start a business with no money.How to start a franchise with no money

If you are like most Americans, the best way to raise funds to finance your low-cost franchise purchase is to start a small business. The quagmire is that you don’t have startup capital. Which begs the question: how can one start a business with zero or little savings?

The upside is that others have done it successfully, and you can do it too. Yes, you can start a business with no money! Here’s a checklist on how to do so.

1) Don’t Quit Your Current Job Yet

If you are looking to swap a full-time job for business ownership, you might want to hold off the idea of quitting your job for a little while. Remember you still need a steady stream of income to sustain you until your business takes off. By holding onto your present job, you will be more financially secure. Of course, that means you will have to put in longer hours and work extra hard, but it’s all worth it.

2) Spend More Time Working on Your Concept

Not many business ideas can work without sufficient starting capital. That’s why you need to spend some time brainstorming and sifting through possible business opportunities. Don’t be afraid to throw away ideas that sound off or unattainable.
Is your business concept viable? Is it unique? If yes, will it generate value for your target audience? Getting answers to these questions will help you figure out if your business idea will work or not.

Here are some business ideas that have proven to work with limited or no budget:

Start a Craft Business: Don’t underestimate the power of making “something.” You can make jewelry, handcrafts, birdhouses, graphic designs … whatever you’re good at. You will probably need to shell out a few bucks for supplies, but these products often fetch many times over the initial cost. And the best part is that there are myriads of places you can sell these items, including flea markets, Etsy, Bonanza, eBay, Abe’s Market, and so on.

Resell Products: You can start off by purging items you no longer find useful. This way, you can raise some money to buy items you can resell on Amazon, eBay or through drop-shipping.

Sell Your Services: You can sell your top skills on marketplaces like Craiglist, Elance, Fiverr, Skillshare, and TaskRabbit, just to mention a few.

3) Stay On Top of Your Market Needs

Do a market analysis to figure out how you can stay ahead of the competition. Oftentimes that includes checking out market trends and identifying challenges that your venture might confront in the near future. The next sensible step is to determine how to address these challenges, face off competition, and stay profitable.

4) Network

It is important to surround yourself with people who can help in one way or the other. Attend business seminars, talks, and even trade shows where you can find potential investors.

5) Get Feedback

If you are planning to get into business without money, it actually helps to get a second opinion from people who are familiar with the market and associated challenges.

Starting a business with no money is no picnic. With this handy checklist, you can power through the whole process and round up enough money to buy your dream franchise.

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