Working for yourself... it's the dream, right?
Starting your own business seems like a pipe dream for a lot of people, but it doesn't have to be. People are starting more companies than ever.
You can even start one from your home. In 2018, reports showed that over 50% of small businesses without employees are based in homes.
So how can start a small business and run it without a loan? We offer you a few options in this post.
Keep reading to learn five ways to accomplish your goal.
1. Keep Your Job
What kind of business are you building? Is it necessary for you to do it full time from the very beginning?
For most people, the answer is no. Keep your day job when you are first starting and build your business part-time.
Your salary is your safety net that ensures you don't starve. This safety net means a less stressful time for you when you are trying to grow your business.
2. Don't Buy What You Don't Need
When you want to provide the best service, it's hard not to go overboard. Your customers deserve the best, so you need to have the best resources available.
But chances are you can provide excellent service without breaking the bank. Take an inventory of the minimum necessary to do the job and use that.
You can still provide excellent service without paying a fortune.
3. Use Profit to Build Your Business
When you keep your expenses low, then you are going to bring in more profit. Don't let that money sit and go to waste.
Use it to reinvest in products and services that will grow your business. You start slowly, but you will build a company that has no debt.
4. Crowdfunding
If you do need cash to build the business you want, then consider crowdfunding as an alternative source of money.
Instead of going to a bank for a loan, you are first asking if people will pay for your product.
A crowdfunding campaign does two things.
First, you get market research. People will tell you with their money if your product is worth buying or not. You can validate ideas and learn what to change with your plan.
Second, you get money to build your product. Unlike the bank loan, you don't have to pay this money back.
The people funding your product are paying for it. You will need to build and deliver it, but after that, you are in the clear.
5. Use Legal Funding for Court Costs
If your small business is surprised by an unexpected legal problem, you probably don't have the funds to deal with it.
Experts developed legal funding as a means to fund contingency fees for lawyers.
Don't Wait to Start a Small Business
Things have changed. It doesn't cost a fortune to start a small business anymore.
Make sure you research all your options to see everything available to you. You have more choices than you think.
Are you looking for more small business advice? Head back to our blog for our latest blogger posts on loans that help small businesses!
