Starting Your Own Business with Little Capital

Sources of Business Finance
December 24, 2016

Entrepreneurs put many wonderful ideas on hold because they believe they do not have enough funding to finance it. They believe that their idea does not have the potential to lift up from the ground unless they get either the Aladdin’s lamp or a major funding from a generous resource. In this article, we are going to tell you some tips and provide you guidance as to how you can start your very own business with a little capital. Let us now look at some of them.

Give Services and gather funds

Having no or little capital is no excuse. If you have an idea, which is perfect and has the potential to succeed, then you should not wait for an uncle with heavy pockets to leave you money to start your business. The easiest thing, perhaps, is to start a service-oriented business. You start by offering some services to people as per their requirements, needs or wants. The next thing you do is collect some funds. A product-based business is the one, which requires a significant amount of up-front capital to be started up. If you are such a situation, then you should sell your services, collect funds, and then use those funds for setting up your product-based business.

Sweat a little

Constant struggle with commitment to some objective provides success to the entrepreneur. If you cannot find a door to get opportunity to acquire success, then you should build a door. Especially when you are starting up a new business, you will have the need to struggle. Knock on a few doors, tell people about your business idea, work on your booth and close your own deals.  Many billion dollar companies have started from merely someone’s backyard or garage and have lead their owners in to becoming big business tycoons. Hard work always pays off so get your butt of the cozy chair and start your struggle today.

Find sources for funding

According to a traditional theory in entrepreneurship, you should not deviate from your idea and stick to it no matter what, in order to become a successful businessperson. If you have started your business with the little amount that you have, then you need to struggle to keep it running and keep the funding coming in somehow, as desperate times must call for desperate measures. Look for resources around you that might help you with financing your start-up. There are many options, which one can choose from. These options include the following:

  1. Getting a loan from a bank or financial institution.
  2. Purchasing assets for business on the lease.
  3. Getting funding from close friends, family or peers.
  4. Consider a business incubator.
  5. Go for crowdfunding.
  6. Apply for Small Business Innovation Research (SBIR) grants.
  7. Consider bootstrapping.

In a nutshell, do not let the lack of money, finances and resources to discourage you from struggling on the path to accomplish your business goals and become successful.