Obtaining a business loan isn’t as easy as the YouTubers claim it to be. You should know if your credit is in bad shape, you will not get a business loan. Yep, that’s right. The bank takes into consideration your (personal) credit and spending habits. The YouTubers often will leave that pertinent information out. Plus, do you want someone over your shoulder every month harassing you for money while you are trying to learn how to grow your business? Do you want to be a slave to the lender? Trust me; you don’t want that added stress. It is best to start small and slow. 

I have a few tips on how to start your business with little to no money. If you decide to employ one or all of these suggestions, you can fund the business without debt. The sooner you start, the better.

Sell unwanted or used items from around your home

Aspiring business owners are eager to get into debt; I think it’s because they don’t know any better. Often, they tell me I don’t have any money to start my business; I need a loan. My response is no, you don’t need a loan. And 80% of the time, I am right. Don’t get me wrong, sometimes you need additional funding depending on the industry, the equipment is expensive, and you need a prototype developed or extensive R&D. But, most people can start their business by selling unwanted or unused items. I’ve counseled with women wanting to start a clothing boutique with no money. They own a couple of Louis Vuitton handbags and other luxury items. The sad part is they were no longer using them. Those purses, shoes, and clothes sat in the back of their closets for years. Or there is a car not in use and just taking up space in the garage. Sell those items and use the money to start your business. There is absolutely nothing wrong with it. It’s a good business decision, and you will be proud of yourself once the business is operational.

Apply for grants

Applying for grants can be tricky. Most grantors are looking for established businesses with a track record of sales. In some cases, there is a minimum annual revenue amount your business must meet with other strict requirements. Here is a list of possible grant opportunities for your business.

1. Amber Grant (https://ambergrantsforwomen.com/get-an-amber-grant/)

2. IFundWomen (https://ifundwomen.com/grants/apply-for-grants)

3. Build Your Legacy by Essence & PineSol (https://www.essence.com/yourlegacy/)

4. FedEx Small Business Contest (https://www.fedex.com/en-us/small-business/grant-contest.html#)

5. Minority Business Grants (https://www.mbda.gov/grants)

6. Scale-up Pitch Challenge (https://nbmbaa.org/scale-up-pitch-challenge/) 

7. https://venmo.com/business/small-business-grant

8. https://www.getfundid.com/grants/categories

9. https://www.fundera.com/blog/small-business-grants

Use your God-given talents

Use your talents and skills to make extra money on the side and use the money to start your business. If you want to start a Photography Studio, use your knowledge to teach photography workshops on the weekends. Promote the event on Eventbrite, Google Events, AirBnb Experiences, Meetup.com, the local paper, and neighborhood coffee shops. You can apply this to any skill set. There are a lot of people willing to pay you for your knowledge.

Rent

Most business owners think they need to own everything when starting. You don’t. Renting is a great way to keep more money in your pocket during the lean months and years of starting a business. Rent equipment or supplies and add the cost to the invoice. The clients can pay a 50% deposit upfront, helping to reduce the cost of doing business and your out-of-pocket expenses. A new business needs to invest its profits in operations (anything that makes your business more efficient) and advertising. But not social media ads. That’s a waste of money.

Purchase in smaller quantities

Buying in bulk allows you to take advantage of better pricing. But you can’t squeeze water from a rock, so what do you do? You buy what you can afford. Find the best deals within your small budget until the demand for your product increases. Once that happens, you can buy in bulk and take advantage of the price break.

Pre-orders

Allow customers to pre-order products, and then use those funds to create them. It’s a great option if done right. The start-up costs are low. You can test the viability and demand of the product before investing in manufacturing. However, I do want to warn you. If you find it hard to keep your word, are terrible with money, or are a procrastinator, I don’t advise you to do this. It will bite you in the butt. If you don’t deliver as promised, people will chase you out of town with torches and pitchforks and expose you on social media. And you don’t want that!

Are you finding the tips helpful? Click the link to support the blog and keep helpful content coming your way.