Becoming an entrepreneur can be a tough task, especially if you don’t have the financial leverage to get started. However, with the right mindset and proper strategy, it is possible to become an entrepreneur without any money. In this article, we’ll explore some tips and techniques to help you start a business without any investment.
Starting a new business and trying to become an entrepreneur isn’t easy. That’s especially true when you have less money. But, many successful entrepreneurs started with no money and rose to great heights. No wonder why you, too, might be wondering about — how to become an entrepreneur with no money or experience in 2023?
Well, you are in luck today, as we will be answering that same question for you. What we provide you are tips and strategies rather than tricks. Money-making tricks or Get Rich Quick guides can reduce your overall potential to reach great heights. Even before you become an entrepreneur, you need to start a business. The upfront cost of starting a company could have significant variations as well.
What is an Entrepreneur?
Entrepreneurship is defined as the activity of setting up a business or businesses, and taking on financial risks in the hope of profit.
Entrepreneurship is about innovation and creativity. Money results from what you do and not why you do what you do. Usually, when a person cannot handle boss and office politics, or when a person is more interested in changing the world while the company’s vision is of status quo, he becomes an entrepreneur.
Mindset and the right attitude/intent are required. I recommend you to read books. Some great books can help you find your passion and develop an entrepreneurship mindset. These Books to Read For Self-Improvement can teach you a lot about life and make you a better human.
Entrepreneurship is done to pursue a dream/vision/idea in the form of a product, whereas conventional business is done for profits. However, every entrepreneur is a businessman as well. As a entrepreneur you should have the knowledge of running businesses as well.
So, let’s say you need to know how to make and manage money and have a great idea/vision/dream to be called an entrepreneur.
How to Become an Entrepreneur with No Money?
Let’s address the elephant in the room — how to become an entrepreneur with no money?
Establishing businesses without money isn’t easy. We know it. But it’s possible to become an entrepreneur without resources.
We will talk about how much money do you need to start a business. After that, we will provide insightful information about how entrepreneurs make money. This will help you get inspiration and ideas from them.
After that, we will provide steps to becoming an entrepreneur for those who have less money and no money.
How Much Money Do You Need to Start a Business
The first step to becoming an entrepreneur is to start a business. This begs the question, how much money do you need to start a business? Well, the money needed to start a business largely depends upon the company you want to start today.
For example, if you wanted to do dropshipping, you could buy a domain and get started. Whereas if you wanted to create an airline, it would require significantly more capital to get licenses, aircraft, and employees.
So there’s a lot of variation in how much money do you need to start a business. You need to lay down all possible expenses as compulsory, necessary, and unnecessary to make things clear. Know your fixed costs and liabilities.
This will give you a clearer picture of the money needed to start a business. If you want to become an entrepreneur, your goal should be to start the company in a way that requires minimal expenses.
If you want to become an entrepreneur by doing e-commerce, you could start with dropshipping, where you would need less than $100 for an upfront investment.
Let’s go back to our example of starting an airline business. You could start as a company, a charter service, with smaller aircraft (that you can take on lease). This massively brings down the cost. Don’t get me wrong, this would still require money, but it would massively reduce prices until you are profitable enough to afford competition in large-scale aviation.
In short, the answer to how much money do you need to start a business is different for different businesses. if you want to become an entrepreneur with no money, you must figure out how to get started with a minimum investment.
It’s important to keep unnecessary costs to minimum. Avoid marketing expenses as much as possible. Instead, focus on organic marketing to grow your views.
How Entrepreneurs Make Money
Once you start your company, you will need to start making profits quickly to become a successful entrepreneur.
Real entrepreneurs make money to produce high profits while keeping products affordable. You need to know how to make money most efficiently.
Many prominent entrepreneurs have found ways to earn money quickly. We will also teach you the art of “how to start a business for free”.
The first step in how to start a business for free is to find creative sources of money. For example, Google utilizes our search data to earn revenue from marketers. It keeps search free for consumers and deserves it from marketers. Similarly, one of the best examples of how entrepreneurs make money is McDonald’s.
How? The founder of McDonald’s once said that
“[his] real business is NOT making hamburgers, but rather it is real estate.”
McDonald’s is a known fast-food chain, there hero product should be food. They don’t even sell real estate. How could its business be real estate?
McDonald’s runs on a franchise model, where they lease out land to a franchise that uses the global SOPs to have the same products and tastes across the world. McDonald’s essentially gives real estate and provides training.
This model keeps McDonald’s highly profitable. Even at the peak of the COVID-19 pandemic, when fast food was mostly shut down, McDonald’s kept earning from the rents of these franchises.
Such techniques are used by many to become successful entrepreneurs. Make your products affordable and still highly profitable. Like McDonald’s and Google, you must figure out a way to earn money without troubling customers.
How to Get Money For Businesses
As an Entrepreneur with fewer resources, you have to be efficient to bring maximum output with minimum input. If you are yet to start a business, you are unlikely to get investment or funding.
You must remember, “Money Saved is Money Earned.”
Build Income Sources
One of the biggest problems when you become an entrepreneur with no money is the lack of funds to start a business.
When you become an entrepreneur without Money or Experience, you start using your cash at fast rates, and as you have already left the job, you won’t get a handsome amount in your bank on the first day of each month.
It is difficult to adapt to uncertain payment cycles for someone who has been used to getting a handsome amount of money at the start of the month.
The solution is to make some portfolio and passive sources of income like stocks and real estate.
Portfolio income sources could be sold if you reach a dead cash shortage, while other passive sources can create a regular income. You would be able to become an entrepreneur with the money when you leave your job.
YouMultitask money and further earn cash for your business startup by learning to multitask passive/portfolio income.
You must learn how to effectively save money that can be leveraged to become an entrepreneur with no money. It starts with prioritizing your workload to multitask and multitask efficiently.
The key to multitasking is to prioritize tasks properly. Dr. Steven Covey very well suggested the right approach to managing time. He suggests categorizing all your work in 4 quadrants, as shown below.
You should finish Quadrant 1 first and then complete the tasks in Subsequent Quadrants. Dividing work into these four quadrants can be helpful and is a crucial tip to multitask better. It ensures that you do not do a less-priority task before a high-priority job.
Tasks of high priority should be done first, with charges of lower or the same emphasis being done in parallel by multitasking, allowing you to do the work of 2 people alone and reducing the time it takes for a particular task.
How to Start Businesses With No Money?
You might have almost no resources and want to start a business for free. No problems.
One of the most important things about how to start a business with no money is that money should always be a catalyst in your entrepreneurship journey. It should never be a prerequisite for your entrepreneurship firm.
- To start a business for free, you should look to borrow money from friends and family.
- Most Federal, State and Local Governments have programs to finance startups. They often take much higher risks than conventional investors.
- Crowdfunding is a new and effective way to become an entrepreneur with no money. Companies like OnePlus started with crowdfunding and are thriving today.
- If you have high confidence in your product, try to build the MVP (Minimum Viable Product). This massively improves the chances of getting funding from investors.
- Another trick about how to start a business with no money is to find a co-founder. A co-founder will help you make better decisions and may help you get finances.
Becoming an Entrepreneur without money or experience isn’t easy, but it’s still possible.
You have to leverage every resource to its fullest. Time is money, and you have to put in the time when you don’t have money.
Strategies like leveraging the Internet and multitasking are instrumental in achieving your goal.
In the end, you have to find hidden opportunities. All of the ways I mentioned are tried, tested, and work for many, but every Entrepreneur has different struggles and problems.
That’s why you should be creative and always look for even more ways to achieve what you want.
In case you have any great ways that you used to become an entrepreneur, let me know in the comments below. I will certainly add it and help others become entrepreneurs.