Starting a Business With No Money? Here's What You Can Do
It can sometimes feel like the only way to start a business is by being wealthy, to begin with. We even came across people landing on our website with questions on ‘how to start a business with no money,’ and we thought we’d help out by providing some practical advice.
As it turns out, here in New Zealand nearly anyone can start a business with little to no money, as long as they are willing to put in time and effort and look for helpful resources. If you still don’t know where to begin, we’ve included some tips below.
Approach your Regional Business Partner Network
Whether you want to start a business with staff, work for yourself in lawn care, or something else, you can find out all about how to get your business off the ground from the Regional Business Partner Network.
This provider can inform you of the types of government assistance you may be eligible for, including those you may not have even heard of before. The Regional Business Partner Network is also a valuable source of information for business networking and connecting you with professionals and business advisors.
Make contact Maori and Pasifika development programmes
The Ministry of Business, Innovation, & Employment (MBIE) offers a range of tools and information to help Maori and Pasifika businesses get started, grow, and thrive. There are even programmes and schemes available to assist with funding interns, purchasing Maori land, and buying products and services to help with business growth.
You never know what’s available until you start looking, which means your dreams of starting a business with no money may be a lot more realistic than you might think.
Consider business financing
If you’re able to put together a solid business plan that shows your valid expected business projections, you may be eligible for business financing through lenders.
While it’s essential to get expert advice before you go down this route, it can be an ideal way to get your foot in the business door and start making an income.
Look for local funding opportunities
You won’t know about any grants for small businesses in New Zealand if you aren’t actively looking for them. Don’t be afraid to contact local councils and information providers to find out where you would likely discover such grants.
Typically, when they do become available, you’ve got to meet a series of criteria. The more open-minded you are about your business venture options, the higher your chances may be of being able to start a business with little to no money.
Work with a current business owner
As driven as you might be to start or purchase a business right away, the timing may just not be right. That doesn’t mean you have to give up on your dreams altogether, but it does mean that you might need to wait a little longer.
Working in a lawn mowing franchise for instance offers many benefits. By working for someone else who already owns a business in the lawn and garden niche, you can come to understand how the company works before you take on the responsibility of starting a lawn franchise on your own.
While you’re working for someone else, you can also be saving money to put you in an even more desirable position to buy one for yourself if the opportunity becomes available.
Turn to your loved ones
While relying on friends and family for money to start a business may not be your first choice, it’s helpful to know the option is there if you need it. You may be able to provide them with a sound business plan that gives them confidence, particularly if you are buying a franchise with an already well-established company.
To avoid the risk of relationships souring, consider setting up the loan as a business agreement through lawyers rather than relying on a classic Kiwi handshake agreement.
Look at potential investors
Even if your goal is to be the sole owner of your dream business, bringing investors on board might be how you realise your dream a lot sooner. Investors can provide the start-up funds you need in return for a stake in your business. This is known as equity capital.
There are several advantages associated with equity capital, such as having no fixed payment requirements. If you went down the loan route, there would be. Investments also don’t increase a company’s fixed costs or burden.
If you bring investors on board with your new business venture, you can even defer dividends and, instead, direct your cash to your everyday operating requirements and business opportunities.
Looking to start a business with no money?
As challenging as it might be to start a business with no money, you do have a myriad of different options at your disposal. Weigh up the pros and cons of each and decide if any stand out to you as viable.
You never know; you may be eligible for funding that sees you on the path to business ownership sooner than you might think.