3 Easy Ways to Start a New Business With No Money
Not every new business needs VCs.
New businesses are mushrooming in every nook and cranny of the world. Ideas are worth millions they say, but someone’s got to have a budget for the business to take off.
What happens next is the sad death of an idea, however revolutionary, and the possibility of a million-dollar business gets buried in deep helplessness.
Thankfully for most creatives, the idea doesn’t let them rest till they can get them off the ground and find ways to launch them successfully. For the big business dreamers who know the technical know-how or have someone to guide, there will be Venture Capitalists to back those dreams.
Small businesses almost always rely on family and friends for support to kick off their passion project(s). Not everyone can have rich friends or relatives who believe in them.
More so, it’s often the family and friends who not just back off from supporting your new business idea, but they’d give their all to convince you to stop dreaming about it and get a “normal” job.
But a creative mind will find other ways to get started. Here are some ways how small to medium-sized businesses with a shoe-string budget could raise funds and find support.
Scrips
Many new businesses have zero problems starting off by offering Scrips.
Scrips are akin to gift coupons or certificates that can be used to pay for other services a new business cannot afford. Like marketing, advertising, designing, acquiring real estate, and so on.
Pros:
- Businesses can get started without the overwhelm of arranging funds to just get off the ground.
- The gift coupons would be priced at the selling price of the product, whereas the manufacturing cost will be lower, thereby letting the business enjoy some profits before the product is used/delivered.
- Not all coupons get used immediately as the validity would be till 6 months or a year, so the business will have time to honor the scrip coupon for a year.
- About 10–20% of the coupons may lie unused till after the validity period which is again a profit for the business.
Cons:
- Not every service provider will say “yes” to Scrips.
- They may not be viable for every type of business where time is money.
- Unused scrips may be considered a burden for the service provider
- If scrips printed are not distributed it can be an overhead for the business.
Clearly, Scrips are an acceptable form of exchange in lieu of other services they cannot yet afford. They also get to save on their capital, generate more revenue, and make early profits.
Bartering
Though this is similar to scrips, there is a difference. There wouldn't be any coupons but a contract or similar in exchange for services.
For instance, a copywriter providing content to an SEO provider who in turn assists the copywriter to elevate his website content in Google.
A restaurant promising to buy raw material from a particular vendor in lieu of mutual special prices.
Pros:
- Better than scrips as the mutual exchanging of services is more like a win-win.
- Benefits are more immediate with zero or minimal waiting period.
- A more viable option for any type of businesses
Cons:
- If the services exchanged are not perceived as equal, it is less likely to work out.
- Bartering may not be practical for a long time
- Any delay in processing the mutually agreed bartered service will break the business relationship and cause a loss to either or both parties.
Free Sample or a Freebie
Think it only works in the B2C businesses? Let me prove it otherwise for you.
It’s no secret that many freelancers started by offering their first services for free. Believe it or not, they most likely will get another project from the same business.
Here’s why… Humans in general cannot accept anything for free. So you can bank on that reciprocity trigger. If the client likes your service, why would he not have more paid gigs for you in the future?
And what about a new software application’s free version or a 30-day free trial option. Get people to use the product and get used to it, so they will not mind paying the price for it.
In his book, “My Life in Advertising”, legendary American copywriter of the 19th century, Claude Hopkins has battle-tested this.
Hopkins swears it is a given that — free samples or offering a new product initially at a low cost or offering a freebie along with the product are much cheaper options than trying to hire a marketing agency for a new business.
Pros
- Businesses can get a foot in the door of new prospective customers at a minimal cost.
- Works cheaper than advertising costs.
- If the product is good, customers would most likely stick on.
Cons
- Might not be practical in all businesses.
- If the product is a dud, it will not take the business anywhere but south.
- Budgetary constraints might make this option, not a viable one.
Though giving free samples can be risky because anything free can be considered cheap and worthless, it can be a game-changer for certain consumer products. If possible, it can be converted into a free trial option.
Vacuum cleaners were once given to test for a week and then be returned or bought. Likewise with Amway products.
A few copywriter friends of mine have exchanged copywriting in exchange for music lessons for kids, and even aromatic massages for themselves. Top copywriters are often offered a company’s equity at times.
With more and more businesses going the online route, Scrips, Bartering, or Free sample/Trial options can happen online.
If you like more bite-sized tips like these let’s connect on Twitter
P.S: This article may contain a few affiliate links.
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