“Well, I’d say Money has been my biggest challenge all my life. It takes a lot of money to make your dreams come true, but I did it. Disneylands, TV, Movies” Walt Disney [The Kingdom is now worth $184 Billion – Wiz4biz]
Startup Topics: Keep your Day Job, Qualify your Idea, Analyze Market, get Advise, Network, do Field Trial, Determine $$$ Needs, Crowd-Funding, Loans.
Got a great Business idea and want to start with no $$$ down? You’re not alone. But for most aspiring Founders, getting hold of that much needed capital is usually the biggest challenge in Starting a Business.
Lack of Fun (er, Funds), however, should not deter you from pursuing your entrepreneurial dream of Starting a Business. You just need to have confidence in your idea and a clear vision about how you are going to execute it. Once you have that covered, getting the funds to support your dream may not be as difficult as it seems. Look out below !!!
Checklist: Start a Biz w/ No $$$ Down.
1. Keep Your Present Job.
Being practical is extremely important when you are considering the idea of Starting a Business. You need a steady source of income before you can set up your Business, so it’s advisable to hold onto your current job. By retaining your present job, you will be more secured when you need to take risks.
But pursue your Dream. You will, of course, need to spend extra hours and work harder. But the transition from being an Employee to a Business Owner will be far smoother as you won’t have any or little additional expenses to worry about.
2. Qualify your Business Idea.
Coming up with a great idea is just the beginning of your journey as an entrepreneur. There are many more steps that you need to take before you can get started. Fleshing out your Business idea is one of them, and it’s very critical to the success of your venture.
Is your Idea really unique? What value will it generate? Is it something your Target Audience really wants? Or is it something you think they’d want? Will they pay for it” Getting answers to these questions is important to determine whether or not your idea is worthy.
3. Analyze your Market & Challenges.
You have a brilliant idea that you know will definitely work. What kind of challenge will your Competition be? Will it be difficult for a rival to copy your idea improve and/or re-package it in a better way? You’d better know the answer. A potential investor will ask you this when you ask them for funding. It’s very important to understand your market you operate in & your competition. You should first look at the trends and identify challenges that your Startup may face. The next step is to understand how you are going to address those challenges to get & stay profitable.
4. Discuss your Idea with Experts.
If you are planning to get into a completely new market, it would really help if you got a second, third (or more) opinion from people who know the market + the challenges involved. An idea that looks good on paper may not be that attractive when you actually get into the details. An expert’s opinion may help you look at things from a different perspective and gain more knowledge that you may lack.
5. Network with People.
When you don’t have $$$ to start your Business, it’s essential you find the right people who can help. You may attend Trade Shows, Seminars & other events – where you can find potential investors. You may also join various Online Forums on Social Networking sites where you can find useful tips and resources to bring your Business to life or join/start a Meetup – specializing in you area of expertise. Most Investors are quite active on Social Media, so if you can wow them with your idea, they may fund your great dream.
6. Do a Field Trial.
Want to find out if your idea is indeed unique? Run a test and find out. A successful Customer Beta Test will give you the confidence you need to launch your product or service + feel confident you have minimized the risk. You can start on a small scale by giving away some Freebies to a few people in your target audience group to see how they respond. A small trial can give you some new insights to tweak grow your product + identify challenges that you might have overlooked.
7. Assess your Funding Needs.
You require $$$ for starting a Business, but how much do you really need? Without a clear idea, you run the risk of coming up with an un-realistic valuation of your Business, which will put off Investors and get a apossible Loan rejected. So before you start wondering how you should raise $$$, you should focus on evaluating your funding requirements. How much do you need to get started? How much are you going to need until you become profitable?
8. Explore Crowd-Funding.
(ie, KickStarter has changed the way founders are raising $$$ to fund their new Businesses. Whether you want to sell a new SW tool or set up an organic Food bar, you can get people to invest in your new Business). You pay these Investors back with product, equity or sometimes – not at all.
9. Secure a Small Business Loan, if Necessary
There are several Loan programs aimed at helping first time entrepreneurs. The Small Business Administration (SBA) operates Loan programs offered by the U.S. Government. To qualify for the loan, your Business must meet some criteria such as: 1) it must operate in the United States, 2) it must qualify as a small Business according to SBA guidelines, 3) you must operate for profit & 4) you should have a good Credit Score.
Comments: Do you have any other Tips for Starting with No $$$ down?
from Small Biz Trends 12/16 enhanced by Peter/CXO Wiz4biz
For more Info, click on Link for Starting a Business.