We often get stuck on funding when we have a great idea to start a venture. And, more often than not, our bad credit and lack of sufficient investment funds hold us back. Gladly, there are various options for initiating business with no money and bad credit. However, we need to do an extensive search to find such authentic sources of funds for a new business venture. Also, putting all our hard work, ideas and resourcefulness will be in favor of our profits. Besides, we should understand the battle of finding a bad credit start-up business loan for us (budding entrepreneurs) is not easy. So, here are some of the steps that we all newbies should follow to get initiate a great start-up in no time.
- Opt for different funding sources– When it comes to entrepreneurs, who has no previous record of finances, ought to think out of the box. No doubt we can get some funds from our friends and family, but that might not be enough. One such source could be Angel Investors. They are individuals with high net worth who are willingly there to fund any business with great ideas. Business accelerators and incubators are there that can support our business for mentoring or shared administrative services or even for shared office spaces. Their basic motive is enabling the business they are helping to have rapid growth and get a great ROI. This is how they will get their shares or commissions.
Then, there are micro-loans, where we would require to pitch our business proposals and get a loan according to that. Crowdfunding is another great way by which we can give a kick-start to our startup. This way of funding works by giving a percentage of our gains to the crowdfunding sites. We can also try with the venture capital that are high-scale firms instead of individuals with a high net worth in Angel Investors. There are various more such sources, all we need is to search properly.
- Get started with service-oriented business- Collecting funds by providing services becomes a lot easier, unlike the product-based business that requires up-front capital. Make sure to begin in your field of expertise and interest to excel. For instance- if you are good at writing, then showcase your flair of writing to your network. This can help you start a business of your own without putting in much extra effort. You can even start selling your services to earn money for a significant business afterward. To get started, start talking to friends, colleagues or associates about your idea and eventually, establish yourself as an expert in the domain. Also, keep looking for alternative startup ideas, services that you can provide and different people for help. As per the traditional Entrepreneurship guides us to avoid sticking to one thing when you are not getting anything out of it.
- Avoid hefty start-up cost- Do you know the most expensive consultant any startup will hire is a lawyer? So, if we can successfully reduce the cost related to legal representation that will help us to reduce overall expenses. Making use of technology as much as we can in terms of replacing teleconference instead of physically visiting for deals. Moreover, advancement has hardly left any requirement for paper usage for most of the companies. So, even, our start-up can be free of papers, postage and ink cost. One of the most prominent things to initiate a minimum cost start-up is sticking to a specific budget. After all, having a clear idea of money leads to the implementation of smart financial decision for any business. We can avoid taking up expensive office place to start with and there is no requirement to buy brand new equipment either. This small adjustment or creating alternatives can be of great help to start a business with no money.
Do you know 75 percent of business funds are generated from outside sources? Well, this is so comforting for us to hear, right? So, we should stop worrying about our bad credit history and less money as there is a way for everything. With this approach, we will never find starting a new business a daunting task. All we need is to pursue our passion and do an extensive search to find reliable sources of funds for our intriguing venture. So, never let these hurdles detour your willingness to be a successful entrepreneur with a great business approach and ideas. Also, do not forget to stand out as small ideas can result in a significant difference.