Blog

10.08.20

MYTH BUSTING – ENTREPRENEURS NEED LOTS OF $$$ TO START A BUSINESS

Larry Rottmeyer, PhD, Director of Innovation Education, The NIIC

Many people think that you need tons of money to start a business. In reality, that’s not the case. Sometimes you can get started with little to no funding. Starting a business with no money might initially seem like a far-fetched idea, but it’s possible.

When starting a new business, it is vital to remember scale. Many successful entrepreneurs start small to test the waters. The best thing about launching a new venture is you can start as small as you like. Then, watch it grow.

Still worried about how you can start a business with little or no funds? Start a new company with what you already have. Consider your:

• Skills – what can you do?
• Experience – what have you done in the past?
• Knowledge – what do you know?
• Tangible resources – what do you own, and what can you have access to?

Look at relationships you have with others, map out your network of connections, and consider how your contacts could enable you to use what you have more effectively. Your relationships can help drive the shape and growth trajectory of the new venture.

Also, consider launching a new service business. Almost anyone can start a service business. There are often good financial and strategic reasons that a service business would make the most sense. Here are five reasons a service business is the easiest business to start with little funding, especially for beginner entrepreneurs:

1. Requires Little Startup Investment: Typically, there aren’t rental space expenses, there are no products to develop, and there are no employee costs. You can start in your home and be the sole owner.
2. Fast to Start: You don’t need a lot of preparation. If you are locally based, marketing can be as easy as word of mouth. Starting an online business is just as easy. Online reviews and recommendations can get that referral business going quickly.
3. Generates Revenues Quickly: Service businesses bring revenues in the door fast. In most cases, you get paid within a few days or weeks, and often immediately upon performing the service. Simply do the work and get paid. Rinse and repeat.
4. Offers a Good Profit Margin: Service businesses have some of the highest profit margins among small businesses since overhead costs are low. You don’t need a lot of infrastructure or inventory to perform a simple service business.
5. Can be Started as a Side Hustle: You can run a service business on the side while still employed or in school. This is a common, lower-risk way to build a business. Try it. Like it. Then launch it full-time.

There is no need to wait for funding to get started. You don’t need a lot of money to begin your next business adventure.

Let us help you with your startup efforts. Our NIIC Navigator® Learning Management System can help you create new business adventures. Learn more by visiting our website or contact us at info@niic.net.