You Don’t Need a Lot of Money to Start a Business
Don’t do nothing if your procrastination is due to lack of money
You can start a business with little or no capital. All you need to do is research and plan first, then figure out how much money will be needed for your venture (if any).
A lot of people procrastinate because they don’t have enough funds; however, there are other ways that could help them such as raising funds against assets, bringing in investors, or partners.
Let’s explore the steps you MUST do first.
1. Is the idea valid?
In other words, will there be a market for it?
Does your idea fill an unmet need OR does that need exist now too and if yes how does your idea compare?
- What price point?
- Will it be profitable
- How will you deliver the product or service?
- Who is your customer?
- What pain point are your resolving?
- What value are your offering?
2. Have a plan.
It is crucial that you have a clear and concise direction for your business. The more detail in the plan, the better!
Make sure it’s supported with valid data – don’t just hope things work out.
Do the research. Visit websites that can help you to understand the size of the market, statistical websites that can give you valid and current data.
Your research should include speaking to your prospective buyers and asking them if it was packaged like this or priced at such-and-such an amount would they buy the product. You can also ask about delivery methods – are there any specific concerns?
Would they buy and would they pay the price. Why and why not?
3. Do a skills check.
Do you have the skills to create this product, to deliver the product, to sell the product, to market the product, to build the business?
If you don’t have all these skills, who can you speak to to cover the skill gaps, who can you collaborate with, to co-create with, to partner with, to mentor you to ensure that all these skills plus many more are available as you create launch and grow your business?
Building a successful business is hard work. You need accountability, guidance and support from people who know what they are doing- which means you should never go into it alone!
4. Who are your competitors?
What does your competitor look like when it comes to pricing, value add services, delivery, quality, marketing, and logistics?
Go ahead and buy their product and observe the process – how can you improve?
How will your business and idea compare and how can you be better?
5. Run the numbers
You’ll need to prepare a cash flow forecast so that you can see what income is coming in, when it’s going out and what the cost of operation is as well as what capital injections will be needed.
If you are looking for an investor or lender you will need to consider interest payments, principal and interest repayments and share of profits.
The more people who know about your business idea, the better. Not only will it help you find investors but also partners in like-minded individuals ready to go out on a limb for success!
When pitching your business idea, be prepared.
You will need data and knowledge on what makes a success story so people can understand why they should invest in you instead of someone else who might have an identical concept but doesn’t back it up with enough proof-of-concept!
7. Can you fund yourself?
Before you consider borrowing or securing an investor – do you have access to funding against the assets you already hold?
How committed are you to this idea and business concept if you’re not prepared to access the funds yourself against assets you already hold?
8. Who else can help with your funding?
There are so many options available to – 1st, 2nd and 3rd tier lenders, investors, business partners and of course your family and friends.
Regardless of where the capital come from, treat it with respect. Even if family and friends are willing to lend you their money or invest in your idea – there is always a condition on how they will do so!
Let’s consider this question – “What would you want to know if someone came to you to borrow money from you or for you to invest in a business idea”?
Business is serious, money is serious ..
- What security can you offer?
- How certain are you of providing them with a return in Investment?
- What term do you need to repay the investment or loan?
- What interest rate?
- When will repayments commence and at what level – interest only initially and principal and interest?
- Make sure you have a written loan agreement
There are many areas that your prospective lender investor or partner will want to have confidence in regards your idea, and your business plan is what they need to see. Even if family and friends!
The point of this blog is to check your commitment to the idea.
Don’t procrastinate your idea if money is your only barrier now, do the research, check the data, put you plan together and talk to people.
What are you going to do different today?
Nick and Jo’s reason for starting Navig8 Biz was solely to help small business to build and scale up and not be exposed to business failure. They want to share what they have learnt over the years – what worked, what didn’t, and to share how to push through the bad times and how to hold onto the great times.
You have two choices
- Business Planning Basics
We want your business to succeed and we’re here to help every step of the way. So go ahead and register now so we can get started helping you build your dream business today!
A self paced program to build your business. Your business plan is a roadmap. It’s essential for building growth, planning your financial trajectory, filling in unforeseen gaps, attracting investors, and creating a killer sales and marketing strategy. Without it, your business is flying blind, doing burnouts in a wasteland of lost time and money that could be better spent in the right places.
Click on this link to check it out
2. Biz Bootcamp Series
Join the Biz Bootcamp business community – we believe you’ll love it but most importantly it will get your business on track to being all you want it to be.
If you want to bring your business partner into the Bootcamp – do so – you don’t have to do this on your own. Register your business and bring one other key person to the bootcamp …. for free.
BIZ BOOTCAMP starts Friday the 15th of April – this is your opportunity to make a positive choice and change the direction of your business.
Click on this link to register