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Right Attitudes points out that prospective entrepreneurs often start by identifying an unmet need in the market and coming up with an idea to fulfill this need. But if these entrepreneurs can’t secure funding, their idea dies before it even gets a chance to grow.

 

Cash-strapped entrepreneurs can benefit from a different approach. Instead of trying to raise the money you need to fund your grandiose business idea, base your idea on the resources and relationships you already have. Starting small and making the most of your existing resources will help you get by until your business starts earning money on its own. Check out the following resources to learn how you can make this method work for you!

 

Identify Your Resources

Instead of focusing on what you don’t have, try to make the most of what you do have. Identify the existing resources that can help you develop a business idea that you can afford to get off the ground.

 

  • What skills and experience do you have? For example, if you’re great with numbers, consider starting an accounting or financial planning business.

  • What kind of business can you start with the supplies and equipment you already own?

  • Can you leverage your personal network for information, funding, or professional help?

 

Choose a Business Idea with a Low Startup Cost

Based on your answers to the questions above, you should have a better idea of the types of businesses that would work best with your financial situation. If you’re still feeling stuck, here are some low-cost business ideas to inspire you!

 

 

Focus on Affordable Marketing Strategies

Marketing costs can add up quickly. To keep your startup under budget, focus on cheap and free marketing strategies.

  • You can operate as an LLC to gain tax advantages and limit your liability. Learn how to start an LLC.

  • Some free ways to market your business include posting on social media and partnering with other businesses for cross-promotions.

  • For local businesses, a Google My Business account will ensure local customers can find you online.

 

Explore Your Funding Options

Despite how hard you work to keep your costs under control, you may still need access to some external funding to get your business off the ground. Know your options!

  • Crowdfunding is a good option for businesses with a meaningful story to tell.

  • CNBC notes that angel investors may be interested in providing capital for a share of your equity.

  • Bank loans, lines of credit, and business credit cards are some loan options that may be right for your startup.

  • To get more favorable loan terms, view your credit report and take steps to improve your creditworthiness.

 

You don’t need to be rich to start a business. In fact, you can start a business even if you don’t have any money at all! The key is to start small and build up your business as your cash flow grows. Take advantage of the resources you already have, keep your startup costs low, and select funding solutions that align with your goals.

 

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