A man remembering his had times when he was poor despite the fact that now he is super rich
Reality or a Far-Fetched Dream?
The myth of achieving millionaire status from a non-wealthy background is persistent. This notion is fueled by stories of successful billionaires and entrepreneurs who supposedly started in their parent’s garages with innovative ideas that addressed societal needs, ultimately leading to immense wealth.
Owing to the downfall of the economy in most parts of the globe, despair, and hopelessness would be a common scene among the youth because young people believe upfront capital is required for investment and wealth creation, they feel discouraged by the perceived lack of opportunity.
However, in my opinion, there is a difference between remaining skeptical or taking action in any way, in the worst-case scenario you can put it down to experience in the end.
9 Steps to Starting a Business With No Money
Embarking on the entrepreneurial journey without financial backing can be daunting, but CEOs and founders have shared their wisdom to guide you. From leveraging free publicity to building a robust social media presence, explore the nine crucial steps these seasoned professionals recommend for starting your business with zero capital.
- Leverage Free Publicity
- Invest Time as Currency
- Utilize Free Online Resources
- Capitalize on Skills and Network
- Validate Business Idea Early
- Form Strategic Partnerships
- Clarify Your Value Proposition
- Engage Your Existing Network
- Build a Social Media Presence
Leverage Free Publicity
We launched in May 2016 with absolutely no capital. Our app has now been downloaded well over 4 million times.
When we started in 2016, we used every opportunity to make our small website better known. We created profiles on all social networks and just started posting. After a couple of weeks of posting and gaining some sales and fans, the whole thing gained traction, and we were able to afford the first ad campaigns on Facebook, with an advertising budget of €2-3 a day. From then on, we were growing slowly but steadily.
The thing is, nowadays there are many free ways to communicate your ideas publicly. If you start without capital, that is the best chance to make your business known.
Edgar Suppes, CEO, edquadrat GmbH
Invest Time as Currency
Ensure that you have the time to invest in your business, as starting a venture with no capital will require significantly more effort. Without financial resources, you will need to dedicate your time and work on the business without immediate compensation. Essentially, you are exchanging time for money, using your efforts as the currency to drive your business forward.
AL Tran, Realtor, Blogger, Author, DS Inspire
Utilize Free Online Resources
One key step when launching a business without any capital is to leverage free resources and tools available online. In this digital age, especially as a CEO in the tech industry, there are countless valuable resources, from free marketing tools to cost-effective IT solutions. This approach does not only help to offset the lack of funding but also promotes efficiency and creativity. It’s about turning constraints into a power source for innovation, making the most of what’s available to drive growth and progress in the business.
Abid Salahi, Co-founder & CEO, FinlyWealth
Capitalize on Skills and Network
One important step to take when starting a business with no money is to leverage your existing skills and network. Instead of focusing on what you lack in capital, concentrate on what you already possess—whether it’s a particular expertise, a strong professional network, or even a personal brand.
Begin by offering services or products that require minimal upfront investment, such as freelancing, consulting, or digital products. Use your network to find initial clients or partners who believe in your vision and are willing to support your venture, possibly in exchange for a share of future profits or a stake in the business.
This approach not only allows you to start generating income immediately but also helps you build credibility, test your business concept, and gather valuable feedback without the financial burden. By focusing on your strengths and nurturing relationships, you can gradually build the foundation of your business, reinvest profits, and grow sustainably from there.
Shehar Yar, CEO, Software House
Validate Business Idea Early
A notable way to start a business without any capital is to concentrate on getting feedback for a given business idea before pouring time and money into it. This includes finding out who your customers are, what problems they have, and if there is a need for the proposed solution.
To validate your business model, start by carrying out market surveys, engaging potential clients, and collecting their opinions. You might consider making a simple model or a website to test the waters. Doing so gives you the opportunity to test your idea so you can make improvements and develop the business properly without loss of resources. This approach makes it possible to get more prospective partners, backers, or clients for whom it will not be difficult to sell a properly thought-through and well-validated concept.
Khurram Mir, Founder, Kualitee
Form Strategic Partnerships
Establishing strategic, solid partnerships is crucial when starting a business without money. This approach involves aligning with individuals or organizations that share your vision and bring essential expertise and resources to the table. These partnerships enable you to leverage collective strengths, which is especially important when financial resources are limited.
Here’s why strategic partnerships are vital:
- Resource Sharing – Partners can provide much-needed resources, such as technology, expertise, or market access, which you might not be able to afford initially.
- Risk Mitigation – Collaborating with established businesses or experts reduces the risk associated with starting a new venture alone. Partners can offer insights and guidance that help you avoid common pitfalls.
- Enhanced Credibility – Associating with reputable partners can enhance your new business’s credibility, making it easier to attract customers, investors, or additional partners.
- Cost Efficiency – Partnerships can save costs through shared marketing efforts, joint events, or collective bargaining when purchasing supplies or services.
- Innovation and Idea Exchange – Working closely with partners can foster innovation. Regular interactions can lead to new ideas and approaches, potentially giving your business a competitive edge.
The foundation of successful strategic partnerships is an explicit agreement where all parties understand the mutual benefits and are committed to the venture’s success. Building these relationships on trust and maintaining open communication is essential for long-term success. By prioritizing strategic partnerships, entrepreneurs can launch and scale their business ventures effectively, even without initial capital.
Tammy Levent, Founder & CEO, Elite Travel Management Group, Inc.
Clarify Your Value Proposition
The first step I’d recommend is to really get clear on your value proposition—what problem you’re solving and why your solution is the one people need. When you don’t have funds, you need to be razor-focused on what sets you apart. This clarity will help you pitch your business to potential partners, customers, and even future investors.
It’s about creating a compelling story that resonates with others, making them want to support you even if you don’t have financial backing yet. Essentially, if you can get people excited about your idea and show them why it matters, you’ll find that resources have a way of finding you.
C.L. Mike Schmidt, Personal Injury Lawyer, Schmidt & Clark
Engage Your Existing Network
Starting a business with no money is not just a challenge; it’s an opportunity to innovate and strategize.
In my 30+ years of experience as a business coach, including my role as the former Executive Director of Goldman Sachs 10,000 Small Businesses, I’ve witnessed firsthand how resource constraints can spark creativity and resilience. Working with 886 small business owners who collectively generated 15,000 jobs and nearly $1 billion in revenue has taught me one crucial lesson: the most important step when starting a business with no money is to leverage your network.
Think about it. Your network is a treasure trove of resources, knowledge, and potential partnerships. It’s not just about who you know, but how you engage with them. When funds are tight, tapping into your existing relationships can open doors to mentorship, collaboration, and even bartering services.
For instance, during my time as a Kauffman FastTrac facilitator, I saw entrepreneurs transform their ideas into thriving businesses by simply reaching out to their contacts. They found co-founders, secured pro bono services, and gained invaluable advice—all without spending a dime.
In today’s fast-paced economy, the ability to pivot and adapt is more critical than ever. By fostering genuine connections and being open to collaboration, you can create a support system that propels your business forward, even in the absence of capital.
Franne McNeal, President, Significant Business Results LLC
Build a Social Media Presence
Use all the free social-media platforms to build your following. Say what others aren’t saying, poll your audience, and ask what’s missing in other people’s offers and services. Start there, and keep building your following!
Mangla Sachdev, Founder, Expat Business In A Bag
Overstated Resources
There’s a downside to even valuable resources becoming too much popular. In my opinion, a book’s widespread popularity can overshadow its core message leading to the whole thing getting ignored by the younger generation.
People might subconsciously resist adopting the book’s principles, fearing they’ll become part of the mainstream, even if those principles are genuinely helpful in real life.
This is what I see happening with authors such as Bryan Tracy, Randy Gage, Robert Kiyosaki, and his famous book “Rich Dad Poor Dad”. Before presenting an outline of what one can do to start their own business without or with the minimum amount of money possible. Let’s take a look at Robert Kiyosaki’s personal experience and his advice in the first place.
Through Kiyosaki’s Lens
Robert Kiyosaki (The Rich Dad Channel, YouTube) argues that modern society is divided into two financial mindsets. The majority prioritizes stability, seeking a salary, pension, and job security.
Kiyosaki calls this approach “lazy” such as his own dad who held a PhD and kept going back to teaching at university for the paycheck as he put it and it often led to the excuse “I can’t afford it.” He believes that mindset is the key to breaking free from this cycle.
Nevertheless, it can be a piece of cake to raise capital from scratch by using the OPM method which is using “Other People’s Money”.
For instance, Kiyosaki explained his first deal which was a 10,000# deal, there was a 10% difference in the deal as a discount or something similar which he was aware of, so he offered the deal with the full price to the customer, and took the 10% for himself.
Consequently, he believes it does not need necessarily cash in order to be able to make a wise move financially resulting in creating capital and funds.
The Shoe-Pocket Business
A keen eye for detail and an understanding of customer needs are crucial for finding a perfect market niche.
Kiyosaki exemplifies this, he identified a gap in the market when jogging became popular. People were losing their car keys while running, often resorting to hiding them under tires. This problem inspired Kiyosaki’s idea for a shoe pocket, a product that not only helped him pay off his debts but also attracted investors. There are numerous approaches and ways to carry out a plan or realize an idea, yet, the thing that matters most in my opinion is the path itself since it could alter the objective of the whole project or even change the character of people along the way due to the circumstances and moments that members of the group experience.
To start a new business without any money or with the least amount possible one could opt for options such as:
Grants
To begin with, a grant is simply a sum of money given to a person or an organization for specific purposes sometimes the donations happen to receive a perk or an item in the end which is a symbolic gesture, yet, the whole concept would be aiding a vision to be realized and if it makes people’s lives easier in any way, the idea is more likely to receive grants.
Selling your services
- Freelance Writing
- Virtual Assistance Services
- Social Media Marketing
- Handyman Services
- House Keeping
- Home Nursing
- Dog Walking, etc.
After you choose the business, you have to think out of the box and come up with a solution that hasn’t been thought of much in the market or find a gap in the relevant business to fill. In this way, your company could become known much sooner than expected and yield results.
Elements effective in this regard would be proper branding, choosing the right brand name which is better to be consisted of two or at most three syllables.
Can we invest with ONLY 10$?
Now let’s see if we could go for a business or financial move with only 10 dollars in our pocket.
The answer is Yes, according to many mentors in this field there are many areas in which one can invest with even less than 10$ and it could be a great start setting foot on the path of investment and breaking the cycle of paycheck comfort zones.
According to Kris Krohn (2021)10$ investment tips
Cryptocurrencies
While cryptocurrencies may be less tangible and unfamiliar, especially for older investors, they can be a viable option. Even a small investment, like $10 in Bitcoin or Ethereum, could potentially grow significantly if the price rises. Hence, a 10-dollar risk would definitely be worth the try.
Figure 2 A person sitting on an armchair, looks well-off and smart, before him on the screens well-known stocks are being depicted
Stocks
How to Find Cheap Stocks — $10 Opportunities
Although the investment task of reaching a million-dollar portfolio could seem like “pie-in-the-sky”, there is good news:
you can start your investing with far less. Multiple companies have stocks that trade for less than $10, providing opportunities to new investors. Here are some examples:
Sirius XM (SIRI): Offers satellite radio services in North America. Although its sub-base has matured, it provides an income stream possibility in the form of dividends. The Question: What’s to become of satellite radio in a streaming world?
Casinos: Several casino companies are under $10 a share. These can benefit from tourism and consumer spending. Consideration: The gambling industry is cyclical and can be hit by economic downturns. Research the companies and their footprint before you invest.
ADT (ADT): This security company offers home security systems and monitoring. Consideration: ADT is being challenged by new tech-based security companies.
Ambev (ABEV): This Brazilian beverage giant is the world’s largest brewer by volume. Consideration: The company’s performance is tied to the health of Brazil and other emerging markets.
Nokia (NOK): This Finnish telecom equipment company is a big player in 5G. Consideration: Nokia’s success depends on 5G adoption.
Before You Invest:
Low Price Doesn’t Mean Low Risk: While these stocks are cheap in terms of price, they still carry risk. Research the company’s financials, business model and industry trends before you invest.
Diversify: Don’t put all your eggs in one basket! Spread your investments across different companies and sectors to reduce risk.
Other Options:
Fractional Shares: Many online brokers now allow you to invest in fractional shares of companies with much higher share prices. So you can own a piece of a company even if the price is above $10 a share.
Exchange-Traded Funds (ETFs): ETFs are a collection of stocks or bonds that track a specific index. Investing in an ETF allows you to get exposure to a diversified basket of companies with one investment.
By understanding the risks and exploring different options, you can make informed decisions about starting your investment journey All in all, the interesting point in all these mentors is their mindset and sheer determination, resilience and unquenchable thirst for growth. Hence, in order to wake up and break the loop of a robotic life, one seems to have to make the leap of faith and take the risk.
References:
- Kris Krohn. (2021, January 13). $10 Investments Everyone Can Afford. YouTube. https://www.youtube.com/watch?v=f46W1g8WKz8
- The Rich Dad Channel – YouTube. (n.d.). Www.youtube.com. https://www.youtube.com/@TheRichDadChannel
