This is one of the most common questions that are frequently asked by many people. Raising capital to put your business idea to life could really be challenging to many. In fact, many prospective entrepreneurs fail to make it because of they fail to mobilize the necessary capital they need to succeed. This article presents some of the ways how to build a startup business without any financial resources.
Generate a powerful idea with an attractive business model
The idea is the actual blueprint of your startup business. By all means, every successful business in the world came from an idea. But remember, having just an idea isn’t enough. You must also be acquainted very well with how the idea you have will be able to generate revenue and also bring profits, possibly int the long-run. Therefore, the first step in building your startup business is to ensure you’re well conversant with what you ought to do. Being passionate about your idea is very important. In addition, your startup idea must have the actual problem it intends to solve in the market. Most startups fail because they ignore the needs of the market and do what they think is interesting, while ignoring what the customers want.
Apply for grant funding
Grants are some of the reliable funding sources for people who want to start businesses without any financial resources. One great thing about grant funding is that, awarders don’t take a certain share of equity from the awardee; something that is really interesting. There are various grant funding opportunities that could even give out a couple of millions of dollars. It is also important to know that there are those specific areas which are lucrative to receive grant funding. If you’re project or startup is about using artificial intelligence to solve world’s problems like hunger, climate change etc., you’re likely to be quickly endorsed for grant funding, Companies like Google usually give out grants to change-makers working to solve world’s problems using artificial intelligence.
Build a mutually beneficial partnership
Partnerships are really important if a person doesn’t have financial resources to run his or her startup business. With a partnership, it is easier to mobilize resources from other people who have the money, then implement the idea you have. One of the most interesting things about partnerships is that all partners share all the burdens that arise in the business. What makes a successful partnership is each member knowing their role they’re supposed to play. If your startup is about making a tech product, it doesn’t necessarily mean all members need to be techies for your business to grow. What it takes is for each member to play their role as stipulated in the partnership deed. Let’s say the role of some members could be to contribute financial resources while other others could be implementing the business managerially and technically.
Find investors to pitch your idea
In this age of tech-boom gold rush, there are thousands of investors willing to put their money in an idea that is really disruptive to the market. One mistake most entrepreneurs commit is to present vague ideas that lack a straight forward business model. Investors don’t care about the technicalities of your business or product; all they care about is how potent is your idea to generate them much money. If you an entrepreneur who doesn’t have the capital resources, considering to find suitable investors could be your priority. It is also important for an entrepreneur to understand that, investors could be willing to sign you a cheque as long a certain percentage of equity is awarded to them. This basically means that if you ask money from any investor, you must be willing of give up a certain part of your business to them.
Build a good prototype & launch a crowdfunding campaign
Crowdfunding has become one of the most reliable way to raise money for startup businesses. Over the years, billions of dollars have been raised through various online crowdfunding platforms like Indiegogo, Kickstarter, funded and so many others. However, a successful crowdfunding campaign needs a serious strategy that could enable an entrepreneur to raise the money they need. To be able to persuade a large number of people to raise capital for your business, you must have a compelling and credible story behind your product. This story becomes a stepping stone for you to reach into the hearts and minds of donors and well-wishers. Usually, businesses make sure they have a working prototype which they showcase; as true proof of concept of what you they’re trying to raise the money for.
Reach out to Family & Friends
Your family members are your rock and foundation. They’re the first people to trust and in most cases, they’re willing to believe in whatever you intend to do. Many family members are willing to offer you startup capital so that you put your business idea to life. However, it is important to know the most suitable mechanism on how to ask for help from family members and relatives. The fact is reaching out to family and friends for capital contribution could be fruitful or disastrous, depending on how you handled the money they gave to you. If they give you the money and then misuse it, it is more likely that your family members will be so pissed at you and your relationship with them is likely not to remain the same. Therefore, be careful when doing it
Join small business loan Programs
Usually government agencies and financial institutions have programs that offer small business loans. Acquiring a loan is practically not the right choice of any startup entrepreneur, due to how costly it could be especially in the long-run. Business startups that specialize in real estate can easily go for these loans. For startups that are into investing in fragile areas, it is better that they shun away from these kinds of programs.