Entrepreneurship is the new hot job market out there, and even though so many people wish to become entrepreneurs, not many of them actually go through with their plans of starting a business.
Often it’s the feeling of apprehension that holds them back from realizing their dream. It’s understandable to have certain fears before starting something new, and when that something is a huge undertaking such as starting a business, many people are afraid to invest their time and money into something that they aren’t sure will turn profits.
More often than not, money is the number one factor that holds aspiring entrepreneurs from setting up a business. While some think that they don’t have enough funds to start a venture, others fear that putting down a lot of money could become a risky investment.
If you think money is the obstacle in the way towards achieving your entrepreneurial dreams, here are a few things to keep in mind.
You Can Save Money by Paying in Time
If you have a great business idea and the passion to turn it into reality, but don’t have the capital required for setting up a business, you can actually create the things you would normally pay for in a business by simply investing in more time. For example, if you have an idea for a website or an app but can’t afford a team of designers and developers to work on it, simply take it upon yourself to build the website by learning how to code and design.
Sure, it’ll take much more time than hiring a professional to do it, but at least you’ll be saving a ton of money this way. Not to forget that the new skills you acquire through the process can open new doors of employment opportunities in case the business doesn’t take off.
Of course doing everything yourself isn’t the most efficient way of starting a business but that’s how most successful entrepreneurs with financial constraints began. Once you start earning some profit, you can reinvest it into the business by hiring employees so that you’re completely hands free to focus on other departments such as growth and innovation.
Most Digital Businesses Can be Set Up for Free
A lot of things on the internet are free. Consider the number of learning resources and opportunities you can access online with the click of a button, all free of cost.
Similarly, if your business requires a website, there are several free platforms like WordPress and Wix that will host your website for free (or for a small fee) and allow you to create a brand new website in under 30 minutes using pre-designed templates.
If you know the right platforms and tricks, you can even do marketing for your business for free, thanks to the power of social media and search engine optimization.
Look for Investors
If none of the tips mentioned above apply to your business idea and you still need capital, chances are that you can raise funds by pitching your idea to venture capitalists or finding a partner with deep pockets who is enthusiastic to work on the business with you.
Sure, you’ll be losing out on the profits because your investors or partners will have a stake in the business, but if you’re willing to sacrifice 100 per cent ownership for more funding, this may be one way to do it.
If your business involves making something tangible, you can even raise funds on crowdfunding platforms like kickstarter. Maybe someone in your own social circle in willing to give you a loan as an investment if they really believe in your business idea. There are plenty of possibilities for raising funds, and there is a high chance that at least one of them will work in your favor.
Using Revenues as Investment
Even if you don’t have capital initially, you can easily use the revenue from your business once it takes off and simply use it to sustain operations for the first few months.
This may require you to forgo taking out a salary from the business for yourself and instead direct the cash flow towards company development. You don’t need to create a website, a logo or other branding at the time of starting the business. Simply go with the minimum requirement for selling a product and prioritize revenue over fleshing out your company – the rest can be taken care of later.