How to become an entrepreneur with no money: Tips For Entrepreneurs
Become an entrepreneur with no money in India. Becoming Entrepreneur does not mean requiring lots of investment. In India we will be showing you opportunities to become entrepreneur in India with little to no money.
Now we shall inform you well in advance that things may break for you in quest to become a entrepreneur, but we will show you examples how great entrepreneur become successful without much money.
Obviously making money is not the only motivator for entrepreneurs, but risk-taking, usually in the form of financial investments, is the underlying risk. Today we will discuss some ways on how to become a entrepreneur while managing money.
And what we provide you are tips and hacks, rather than strategies. Money making strategies or Get Rich Quick guides can reduce your overall potential to reach great heights. Goal of this post is to make you understand entrepreneurship and how to become a entrepreneur with no money or mat be less money
0. What is an Entrepreneur
Entrepreneurship is defined as the activity of setting up a business or businesses, taking on financial risks in the hope of profit. But financial risks does not mean that you need to put in money.
People who have vision or are passionate about something are capable of becoming entrepreneur. Usually when a person is unable to handle boss and office politics or when a person is more interested in changing the world while company’s vision is of Status Quo, he becomes an entrepreneur
1. Become a Entrepreneur Mindset
Remember that Apple, Google, Disney, Facebook all of these really sucessul companies started from garages.
Are you young, poor, unqualified – a student, or hating your job? Maybe a touch rebellious? Perfect. You have no bad habits, and will work until your fingernails fall out and your eyeballs roll onto the desk. The world awaits you.
Older, wiser, bit of money saved, experienced with a stable job? Maybe a mortgage and kids? Your job is much harder. It can be done, but it might feel like you’re trying to dance backwards through quicksand.
2. Idea and Product of Entrepreneurship
How To Become A Entrepreneur With No Money
Now another important thing is idea. Or the product. How to have a compelling idea. Most of the entrepreneurs have a vision or a ‘Just Cause’ or a ‘Purpose’ but some know how to materialize it in reality.
Usually a good idea comes at a sour of a moment. But who says you are restricted to your own idea only. You can simply pick up any idea in world that has a great potential.
Now as promised we give you examples for entrepreneurship at no cost. This example comes from Co-Founder of Apple, Steve Jobs.
Steve Jobs is best known for his contributions for graphic user interface, iPod, iPhone and iPad.
And it is suprizing to know that he didn’t got the idea of Graphic User Interface. He knew how to be a entrepreneur. He showed his entrepreneurship skills to take the idea from Xerox PARC or Palo Alto Research Center and he developed it that took Apple to unprecedented heights.
3. Leave Paychecks to Become Entrepreneur
One of the biggest problem when you become a entrepreneur with no Money specially in India is that you have to get used to the fact that you won’t receive paychecks anymore.
When you become a entrepreneur without money you start using your cash at fast rates and as you have already left job, you won’t get a handsome amount in your bank at the first day of each month.
The solution is to make some portfolio and passive sources of income like stocks and real estate. These would generate income to supplement your main business income and they can be sold in case you reach a dead cash shortage.
The great thing is that if right now you are doing job, start a part time job, or start investing in stock market. You would be able to become entrepreneur by the money when you leave your job.
4. Follow McDonalds Business Model For Cash
McDonalds the famous food chain is a really large business. And what there founder says is that his real business is NOT making hamburgers but rather it is real estate…
Suprized and Puzzled? Becoming an entrepreneur means keeping in mind every aspect of business. McDonalds is a great example of how to become a entrepreneur with no money.
McDonalds deals in Real estate and gives its franchise across the globe. The franchises themselves run the business.
How To Become A Entrepreneur With No Money Mcdonalds
You have to do similar to become a entrepreneur with no money. Rather than spending you have to invest the money into your business such that your money grows. Efforts and hard work can get you high enough but they risk money.
If you smartly put money, you would have return of investments that elleminate the risks.
5. How to Understand Market and Do Marketing
No great idea is fulfilled without it reaching people. We needs to understand that marketing is not a key element of the product, but it is a fund generator it is like real estate. You put money so that you can gain more. Where as product design and development and risk taking are done just because you have the courage, you want to build great products and you want to do hardwork.
6. Take inspiration From Google
How To Become A Entrepreneur With No Money
We use Google everyday and we use Google products everyday including YouTube, Search, Gmail, Photos and Drive.
Google is now not a entrepreneurship, but it gives a major lesson for entrepreneurship. A simple question, how much money have you spent till date on Google? Most of you would say 0.
Some would definitely have a Google phone or have a Google business email or may be more drive storage or YouTube Red. But we never pay for most of services on day to day bases.
This raises a interesting question? How do you earn billion dollars by keeping your most of the products and only charging for extra features?
This is a important lesson about How to Become and Entrepreneur. Google’s main business is advertisments. It earns all income from variety of advertisements.
Now like McDonalds has its business Real Estate, Google has Advertisments. But a major portion of consumer never pay for Google. If you can become a entrepreneur in a manner that your consumer and source of income are different. Then your entrepreneurship firm is sure to grow.
Google’s consumer is anyone who visits it’s site, it takes its payments from various companies that put advertisements. There consumer and source of income are different, in short there product is free
7. Be Practical About Your Goal
How To Become A Entrepreneur With No Money
The first and most important thing that I tell new entrepreneurs is the importance of practicality when it comes to to money. I’m blown away by all the “entrepreneurs” who start businesses and at launch, don’t realize the importance of generating money and how to manage profits. Instead of focusing on the present financial needs and building an actual company, they are too busy thinking about how much money they’ll be making four years from now. It’s a complete lack of practicality.
Cash is oxygen. How much money do you have to stay afloat and for how long? Do you have one year’s worth of rent and overhead? First-time entrepreneurs always make this mistake and it’s my biggest concern for them. You have to make sure your actions can respond to the bleeding of cash that occurs before you even turn a profit.
8. Leverage Taxation For Becoming Entrepreneur
One of the major reasons that entrepreneurs have to spend more is taxation. Now everyone should pay taxes.
But business is a organisation made to maximize profit while remaining in bounds of laws. So there are certain laws that vary from a job and business.
By standard a business pays taxes on net income whereas a employee pays over gross income. This means that a business pays tax over the money it earned subtracted by money it spent.
This means taxable income for:
Taxable business= money earned- money spent
Taxable employee= money earned
Take for eg. You earn $100 a year, and spend The $50 over the period. The taxation is 40%
As a business you would pay for 40% of $100-$50 this means 40% of $50 = $20
As a employee you would pay straight forward 40% of $100, = $40.
In both scenarios you earn same, your expenses are same but you pay double the tax as a employee. This is a really simplified explanation, and rules can be much more complicated and different varying from country to country.