No Money? No Problem! Bootstrap Your Business Idea
One thing that stops people from starting their own business is figuring out how to get capital. How do you start a business if you don’t have any savings, can’t get a loan, and feel too embarrassed to ask family or friends for help? Although your situation may appear hopeless, you can bootstrap your business ideas by starting a self-funding business, trying crowdfunding, or getting a silent partner.
Self-Fund by Reinvesting Profits
One of the easiest businesses to self-fund is an online business. All you need is a website to share your portfolio or showcase your products.
Setting up a website is affordable if you do all the work yourself. You don’t need to know how to code because hosting accounts make the technology invisible. In fact, all you have to do is click a few buttons and fill in some blanks in a site-building template to set up a website. It’s also convenient to set up an online payment system for your customers with a company like Blue Snap. Later, once your business earns profits, you can add an email autoresponder, landing pages, sales funnels, and so on.
You could fund the business from your wages and build it in your free time. Once you get clients and make sales, then you can self-fund the growth of the business. Eventually, you will reach a point where it will cost you money to go to work because you’ll earn far more from your home-based business than you do from your 9-5 job.
So what kind of businesses can you create online on a shoestring budget?
Here are 7 Affordable Home-Based Business Ideas:
- Freelance writing
- Social media management
- Virtual assistance
- Affiliate marketing
- Selling crafts on Etsy
- Selling collectibles on eBay
Ask for Donations Through Crowdfunding
Crowdfunding is showcasing your project on a reputable crowdfunding website like Kickstarter so that the public can donate to your project. This is not peer-to-peer lending, but microfinancing. Since people will donate, you won’t have to pay them back.
Using articles, digital samples, illustrations, photographs, and videos, you can describe your project in detail when you ask for donations.
To thank donors, provide them with rewards, such as free products, discounts, or an honorary membership to your members-only website.
Find a Silent Partner to Invest in Your Idea
A silent partner is someone who funds your business without getting involved in its operations. They will receive a percentage of your profits in return for their capital investment.
If the silent partner is not a family member or friend, then research their background to make sure they are honest and dependable people. Ask an attorney to draw up a contract that spells out all the terms and conditions of the partnership.
Many Financial Options Available
Self-funding, crowdfunding, or getting a silent partner are simple ways to bootstrap a good business idea. There are numerous other ways, too. You need not rely on credit cards or loans or other more traditional ways of funding your business.
By keeping your operating expenses low and doing most of the work yourself rather than outsourcing it, you can start your own small business with only a modest amount of capital. Later, of course, you can reinvest your profits to scale up your business.