Business Without Big Investment? Yes, It’s Possible!
Owning your business offers many benefits like unlimited income potential, flexibility, personal satisfaction, and creative freedom. If you want to start a business but lack funding, don’t worry—it’s possible to start with no money.
Can’t believe it? Keep reading to find out more!
All businesses need some investment, but if you have little or no money right now, it’s still possible. With a solid plan and the determination to face any challenges, anything can be achieved.
Success Story of the Dosawala
For all those who are unsure of starting a business with zero budget, should hear the great story of Prem Ganapathy.
Prem was stranded at the Bandra station, when the person accompanying him left him and ran away. A kind stranger helped Prem get some money to return home. But he chose to stay and began working as a dishwasher in a small restaurant, gradually earning his way up to a tea boy. His excellent customer service made him popular, bringing in triple the business.
A customer offered Prem a partnership in a tea shop, but when the shop did well, he was unfairly kicked out. Not giving up, he took a loan and started his own dosa stall. By watching others, he learned how to make dosas. His focus on cleanliness and good quality made his stall very popular, despite its small size.
Prem saved some money and instead of going home, he took a big risk and opened Dosa Plaza near Vashi station. Though his Chinese food venture failed in 3 months, he learned from it and started adding Chinese flavors to his dosas. His unique creations like Schezwan Dosa and Spring Roll Dosa gained him a lot of attention, with 108 different types of dosas on his menu.
A customer from a mall food court team suggested Prem open a stall there. Eager to grow, Prem focused on better service and offerings. He also worked with ad agencies to build his brand, designing the logo, menu, and uniforms for waiters.
He received many franchising offers and learned how it works. Dosa Plaza now has 26 outlets, 5 of which are company-owned, with 150 employees and a turnover of 5 crore. All branches are connected and have training managers and manuals to maintain standard and uniform product and services.
To start a business without money, plan carefully. You can raise funds through government schemes or find ways to cut costs. Here are some tips for starting a business with little or no money:
Use Your Skills
The best business to start with no money is one that lets you use your skills and knowledge to earn money while enjoying what you do. For example, if you love dogs, starting a dog-walking or pet-sitting business could be a great option that doesn’t need much money to start.
Easiest Business
The easiest business to own is one that brings in passive income, which is money you earn without doing much work. For example, blogging can earn you passive income through affiliate marketing or online ads. You can also make passive income by selling digital products, like printables, journals, or ebooks, which you only need to create once.
Start a Sole Proprietorship Business
To make your business legally valid, you need to register it. There are different types of business structures, but the cheapest option is a sole proprietorship. To set up a sole proprietorship, you need a shop and establishment registration and GST registration. If more than one person is involved, consider forming a partnership, which is also cheaper than starting a company.
Government Schemes
The government has many schemes for startups and small businesses. Businesses registered as Micro, Small, and Medium Enterprises (MSMEs) can access different MSME schemes to raise funds. They can get loans and credit with fewer requirements under these schemes. Banks also offer loan programs with low-interest rates to support small businesses and promote startups.
Plan a Business Idea
Before starting a business, you need to create a business plan. This plan should include details about expenses, available funds, needed funds, turnover ratio, and cost-to-profit ratio. It serves as a blueprint for your business and helps you present your idea to friends and investors to raise money.
Pros
With total control, you make all the decisions without loans or investors, so you don’t have to explain anything to anyone. This means minimal risk: if your business succeeds, that’s fantastic, but if it doesn’t, you mainly lose the time you invested, not a lot of money. Plus, your starting finances don’t limit your growth. You can start small and still aim for great success.
Cons
Without initial funds, your business might grow slowly and take longer to get going. A bit of money can help speed things up. A tight budget means you may miss out on opportunities, like limited marketing and stocking up could be a challenge. If you dream of having a team, you’ll likely start alone, as you’ll need to wait until you have money coming in to hire help.
Bottom line
You can start a business with no money if you have a clear plan and strategy. The first step is knowing what you need to do to get started. Once your business is running, you can look for ways to grow it and reach your goals, such as applying for small business loans to help you expand.
