Starting a small business may not take as much capital investment as you might think. Some businesses require very little start-up money to get them going. But if you are already broke, starting a small business might seem impossible and impractical. However I’d argue that one of the best times to start a small business is when the stakes are the highest, like when you’re broke. Why? Because when you’re broke some the best and most creative business ideas come to mind as you ponder different ways to make money to solve your budget shortfalls.
If you do indeed decide to start a small business while you’re broke, keep these tips in mind to help you get started, and be sure to understand your needs when applying for a business loan.
Choose Something You are Passionate About
When you get ready to start a small business you should choose something with an immediate demand so you can get started making money right away, but you should also consider choosing something you are passionate about. Passion will go a long when in helping you make your business succeed, especially if you will be trying to run your business alongside a full-time job. The work hours can get grueling and your passion will be what keeps you going when you are tired.
Avoid Unnecessary Expenses
Don’t get caught in the trap of comparing your brand new business with a business that has been operating for many years. Just because an existing business can afford to do lots of expensive advertising or pay for fancy business supplies doesn’t mean your start-up can afford the same things. This is especially true if you are broke while trying to start your new business.
Build Your Business with Sweat Equity
Just like many first-time homebuyers with a long list of upgrades they want to make to their home, small business owners often have to resort to sweat equity in order to be able to afford things. Instead of hiring a professional to do things for your business, or to your first home, you’ll have to get creative and figure out ways to do things yourself. DIY0ing projects will save you a lot on labor costs, but it can be a big time investment, and you’ll still have to pay for materials or supplies.
Avoid High Interest Debt
One of the biggest mistakes people make when starting a business is using a credit card to fund the start-up costs they can’t pay for themselves. Instead of doing this and paying up to 25% (or more) interest on credit card debt, you should consider taking out a business loans with a lower interest rate to pay for those costs instead. Everline provides a great option for those businesses that have been around for 12 or more months, need up to $150,000 and do not want a lot of paperwork.
Starting a business without much start-up capital is difficult, but it’s not impossible if you choose something you are passionate about, are very careful about costs, try to do most things yourself, and avoid high interest business debt.
Have you ever thought about starting a business? What’s holding you back?