7 Steps to Start a Business from Zero

Companies, no matter their size, don’t start on their own. Someone, somewhere, someway, started something that eventually became a profitable entity. We’ve heard all the terms, like crowd funding, venture capital, angel investment, and the list goes on and on. While all these do exist, the majority of businesses are started with very little to no money. The reason people succeed isn’t because of their cash position but because those entrepreneurs had zeal, a vision, and a passion.

power of a business consultant I want to work less and make more money revenue profits

In fact, no amount of money guarantees success, even if a business is well-funded from its inception and follows a smart plan in a strategic way, it can still fail. The Edsel is a perfect example. Produced by one of the most successful corporations in the world, the Ford Motor Company, the Edsel rolled off the assembly line from 1958 to 1960. It was, in its day, by far, one of the most advanced private passenger vehicles. It featured such technology as the Teletouch system and had many other creature comforts, as well as plenty of functionality. However, the line failed to the tune of $350 million, an astounding $2.8 billion in today’s dollars.

Follow these 7 Steps to Start a Business with Little to No Money

Failure is a terrific teacher, if you are willing to learn from it. A good lesson to learn and accept early on in starting a business is that money, as the Edsel clearly demonstrates, doesn’t equal success. Incremental growth, accompanied by patience, tempered with realism, does wonders because such a combination requires focus. When you set aside the distant future, you necessarily put the present at the forefront.

…now is the time to have a heart-to-heart with reality. Reality of what? Well, start with yourself. Your experiences, gifts, passion, life goals and areas of weakness. Seriously. Knowing thyself is the first place to start on your trek toward your vision. —Forbes

In other words, you’ve got to use what you have now, and turn your natural talents into marketable products and services, which is the very essence of business. Richard Branson, who has dyslexia, started his entrepreneurial career breeding budgerigars at age 11 and it didn’t work. Neither did his plan to sell Christmas trees. Next, with practically no money, the future billionaire started Student Magazine, which morphed into Virgin Records. He, like many mega-successful entrepreneurs, started with little to no money, and you can do this too, by doing a few simple things:

  • Do your homework about the market and competition. The reason so many businesses fail is due to misunderstanding the market and not having a clear conception about the competition. Don’t worry if it seems as though the market is flooded, because you can carve-out a niche.
  • Take small, incremental steps and don’t dive-in. A card table, a favorite spot on the couch, a workbench, or a kitchen are all acceptable places to start a business. When you first begin, do it part time and don’t rack-up expenses. If you commit too much time and/or too much money, you’ll put a lot of undue pressure on yourself and make bad decisions.
  • Try to build out a niche. This bit of advice really bears repeating. If you find a smart way to separate yourself from the competition, you can build a stronger, more attractive business.
  • Set small, tangible money and benchmark goals. When you set high goals, you need to do a lot more to reach them and that often leads to failure. When you set small goals, you’re more likely to accomplish them and that makes for a ton of motivation and satisfaction.
  • Build a responsive, easy to navigate website. You need a presence on the internet, which you probably know. There are very inexpensive and easy to use platforms that will be more than sufficient to get you started.
  • Get out and network but don’t sell. Your website, though a necessary tool, isn’t going to be a salesperson; but you can be, if you network to become a known quantity and not to sell.

Finally, give yourself permission to make mistakes and don’t make the huge mistake of waiting for perfection to launch your business.

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Guest Post: The Best Advice for Retirees Aiming to Start a New Business

Written By: Jim McKinley There are many different reasons for starting a new venture after entering retirement. Maybe you want to pursue a business idea you never had a chance to realize before, or maybe you miss putting your knowledge and skills to work. No matter what’s driving you, your first priority needs to be keeping your financial future secure and intact. Check Your Perspective Your first step toward developing a successful business during retirement is developing a realistic fiscal outlook. As Inc. explains, thinking in terms of the financial future is a must. Even if you retired at a young age, are currently economically sound, and are in great health, you need a strategy oriented toward long-term success on all fronts. According to some statistics, nearly a third of all retirees must dedicate 40 percent of their retirement income toward existing debts, and if you have a situation where you’re starting out your business barely making ends meet, you are more apt live with stress and financial struggle instead of making good headway. Examine Debts Acknowledge any debts you have, including your mortgage. If you already owe money to creditors, make it a point to become debt-free as soon as possible. It might be a good time to downsize your home, and you should examine what you have in your retirement savings. Also, take a hard look at your credit report and examine it for any accounts that don’t belong to you, clerical errors such as incorrect dates, or old debts which should be removed. According to ConsumersAdvocate.org, investing in a credit repair service can mean entering into your new business venture with solid financial footing and better peace of mind for your golden years. Solidify Your Plan Once you have a good feel for your financial position, take an earnest look at what you expect to be doing. US News notes the largest part of success for small business owners is making a solid business plan, which includes recognizing an existing need and then finding a way to meet it. Are you offering the right product or service at the right time? Do you already have the abilities to fill that niche, or do you need to invest in special equipment or training? Some retirees turn a hobby into a small business, such as making handyman repairs, landscaping, or selling handcrafted items online. You might decide to be a real estate agent, in which case you should check the requirements where you live. Resources for Funds According to the Muse, if your business idea requires a substantial investment, you might decide to take out a loan or find investors willing to help finance your endeavor. You could reach out to friends and family members through crowdfunding, or connect with specific people you think might be as passionate about your idea as you are. Think about the need you intend to meet as well as who will be impacted and how. Be creative in your outreach, be ready to pitch your idea, and you might be pleasantly surprised at the outcome. Pathways and Exits How long do you plan to work at your new venture? Depending on your objective, you might only intend to work for a set number of years. For instance, some people work until they reach a particular financial goal or a specific age, while others develop their businesses with the intention of passing it along to someone else later. Have a plan in place for how you will later exit your business. Your business’s legal structure can help determine your exit strategy as much as your goals, and certain formats can also help protect your personal finances. You may wish to explore the AARP’s entrepreneurial resources when deciding how to proceed. Taking on a new venture during retirement is a big step. So, weigh your situation carefully to ensure your financial well-being. With some careful planning, you can start a new business without risking your future.

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