How to Start a Business With No Money – 3 Expert Tips For Start Up Success!

Is it really possible to learn how to start a business with no money? The answer is a resounding yes! As a Start Up Business Consultant, I cannot recount the number of times that I’ve been asked this very same question. The good news is that starting a business with no money is not only possible – but extremely smart.

I mean, why would anyone want to incur major debt from a mountain of small business start up loans if they didn’t need to – or rack up high interest credit card debt as a means of cash flow management.   There is a better way – and it’s called bootstrapping. 

Let’s take a look at three ways in which you can learn how to start a new business without big bank loans.
 
Expert Tip #1:

Start a Business from Home
 
When searching for the best small business to start on a shoestring, a home based business wins hands down. By choosing this option you are eliminating roughly 32% of a traditional businesses’ overhead costs. With a home based business, some of these costs may be greatly reduced or eliminated all together. 
 
Consider the savings:

  • No office lease payments
  • No setting up services with utility companies (and no cash outlay for deposits)
  • No fuels costs for commuting to work
  • Decreased car insurance rates
  • Reduction in child care expenses 

According to a recent study, American companies could add more than $260 Billion to their bottom line profits, if their employees worked from home. There is simply no question that working from home is the smartest option for starting a business with limited resources.
 
Now that we’ve discussed where to start a business with no money, let’s examine the best small business to start on a shoestring.
 
Expert Tip #2:

Find Business Ideas Which Require Little or No Money to Start
 
Choosing the right business opportunity is the key ingredient to learning how to start a business with no money.

After all, not all businesses can be started without money. For example, is is near impossible to start a retail store with no money. Unless you have stockpiled a sizable lump sum, it is very likely that you would need small business start up loans to be successful with a retail business. 
 
It is, however, possible to start a janitorial business with no money. Finding the best business to start without money will require some internet market research. Do your homework and be on the lookout for “too-good-to-be-true” claims of instant wealth.
 
Expert Tip #3:

Find Free Sources of Business Start Up Funding
 
The third and final factor for shoestring start up success is saving money on initial business start up expenses and daily operating costs. Reducing these costs at the business planning stage is essential for the long term profitability and success of any small business. Many budding entrepreneurs don’t realize that there are many creative strategies for starting a business without a heavy debt load from small business start up loans, or borrowing from family and friends.
 
Make your dreams of small business ownership a reality. You can learn how to start a business with no money by greatly reducing business start up costs and operating expenses. Eliminate or reduce these start up business costs and you’ll discover the secret to starting up on a shoestring.

7 Simple Steps to Choosing The Home Based Business That is Right For You

In these difficult financial times that we find ourselves, many people are looking for ways to create additional income for themselves. Yet they don’t know where to go to find the necessary information. These simple 7 steps will hopefully help you decide which type of home business is right for you at this stage of your life and career and where to begin to turn your dream business into reality.

A HOME BUSINESS is simply a small business that operates from the business owner’s home office, lounge or kitchen. It is usually operated in one’s spare time and is often based around the interests of the business owner.

Here are 7 simple steps to help you choose the Home Business that is right for you.

Step 1: What is your Passion?

Some of the most successful home businesses have been built around the owner’s passion for something. Catering businesses are built around a passion for cooking and seeing people enjoy your food. Network Marketing businesses are often built around a passion for talking to people, one’s love for the products and helping people develop their own home businesses as part of the team.

So the first thing you need to do is look for something that you are passionate about, that you love doing in your spare time, and see if there is a business opportunity there. One of the fastest growing hobbies worldwide is Scrapbooking and many small business opportunities are being born out of this recent trend to turn a photo album into a vivid and colorful experience.

So whether it is woodworking or baking or writing short stories or whatever, your degree of success is likely to be higher if the home business is based on something that you love doing.

Have you heard the statement “Follow your Bliss”? Well, what is your Bliss? Because if you can link your home business to your Bliss, or Passion, you will be ahead of the game already.

Step 2: How much Free Time can you dedicate to your home business?

For most of us, our home business will be started and operated in our spare time. So now you need to decide how much time you will be able to devote to your new business. And for those of you who say “but I have no spare time for anything new”, I say, “look at how you spend your days and nights and you will see how much time you waste on non-productive stuff”. A good, and useful, exercise is to keep track of what you do over the period of a week, in the 6 basic categories of Work, Family Time, TV, Entertainment Out, Lazing Around and Sleep. All you will need to do is find some 8 to 10 hours a week that you can redirect, and you will have enough time to develop and grow and successful home based business.

Step 3: How Much Money is available to invest in your Home Business?

This is often another obstacle that people find to starting up a home based business. It is important to realize that some $$ will be required to make a go of anything, but some types of home based businesses require a lot more $$ than others. Often where less $$ are needed, more time is needed, but this is not always the case. And for most of us, the reason for starting up a home based business is to generate additional income because there is never enough money left over at the end of the month, or as they say “the money runs out before the month does”.

A Network Marketing business, for example, will often be able to be started for a couple of hundred dollars and a commitment to spend another $50 to $100 a month on training material, conferences and the like. But these sorts of businesses, if you follow the system properly, can start to deliver income within a few months. An Internet based home business may require a larger outlay in the beginning, maybe a few thousand dollars for the training program and software required and can become cashflow positive within 6 to 9 months. Buying into a Franchise on the other hand may require many tens if not hundreds of thousands of dollars. So look at your cash flow and decide what expenses you can give up temporarily, so as to free up some money to invest into your business. No business can be truly successful, if you are not prepared to invest some money into it from the beginning.

Step 4: What are your Specific Skills – what are you good at?

The next step is for you to decide how you can use your personal skills in your new business venture. What are you good at? This is linked to the first step, identifying your passion – but it is more about what you can do well and are confident about. So, if you are great with people and love to meet new people and can chat easily to strangers, then a Network Marketing business may be right for you. You will be given training on how to approach people, depending on which company you decide to work with, but your people skills will put you in a strong position to succeed.

If you are good with words, are a good writer and can put complex ideas into simple terms, of if you are creative and can think outside the box, or if you are good at getting other people to do things for you (a good delegator) then an internet based business may be perfect for you. In this modern age, more and more people are searching for information on any number of topics and are prepared to pay someone to provide that specific information for them.

If you are more business focused, a numbers person and can look at a balance sheet and see the clear picture, then maybe buying an existing small business and running it “hands off” may be a good option. This is also good for people with less free time, although some time will be required to make sure the business goes in the direction you want it to.

Step 5: Look at the Options that fit your profile

This is where you will start to narrow down the options that fit in with your Passion, your available Time, the Money you can free up to invest and your specific Skill Set. There are many hundreds of websites available that will be able to offer you the introductions to the various businesses available to you. You can go to http://www.google.com and enter one of the four sets of words as a starting point to find out what options are available. The four main categories are Network Marketing Business Opportunities, Internet Based Marketing Opportunities, Franchise Business Opportunities and Small Businesses for Sale. In each of these categories, add the city or area where you live to limit the options presented to those ones that are more suitable for you.

Step 6: Do your more detailed research.

Once you have identified 2 or 3 business options or ideas that look good for you, then you need to do some more detailed research into those options. Is there a market need for your Product? Is the Network Marketing Company growing strongly in your area and does it have good leadership? Is the small business you are looking to buy producing a positive cash flow with a good client base? Talk to friends or find someone who is doing something similar and discuss with them. Speak to a business broker if this is the direction you are going in. Once you have whittled your choice down and are confident you can make a go of it, now you are ready to start your business.

Step 7: Take the First Step and Do It

There is nothing more exciting, when starting to develop a new business, than to get going, so now you are ready to do something to implement your business. Find out where meetings are being held to do with the Network marketing business you have chosen. Go to a seminar on Internet Marketing if that is your chosen direction and take the plunge. Most of these sort of home based businesses offer a cooling off period, or a money back guarantee, so you will have a month or maybe longer to decide if the direction is right for you. But the longer you put off doing something, putting your dream business idea into action, the less likely you are to actually get it up and running.

If you would like to know more about this subject, or have any questions about Home Based Businesses, log onto http://stuartfish.biz You will find a number of articles on internet marketing there.

Baby Boomer Entrepreneurs, Get Tips From the Core Principles Business Incubators Use to Help Newbies

Baby boomer entrepreneurs can get tips from the core principles business incubators use to help newbie entrepreneurs. The fast growing new group of boomer entrepreneurs is made up of people seeking to retire from their current employment. They look for a semi-retired life as business owners as compared to traditional retirement. Boomers have an extra time pressure that makes learning from trial and error a poor choice for getting their businesses off the ground. Following a proven model can greatly expedite the development of your business and improve your odds of success. Business incubators regularly help new businesses launch. Taking a look at the core principles by which they assist newbie entrepreneurs has the potential to give you a head start.

Not just Baby Boomer Entrepreneurs, but almost everyone has thought about being in business for themselves. Yet only a few people ever go beyond the point of dreaming and actually start their business. Of those few, 95 percent will ultimately see their business close and not realize their dream of success. Unlike younger entrepreneurs, baby boomers do not have the time to learn by trial and error to overcome the risks of startup. Is there a way to reduce that risk?

Clearly, the answer is YES. Risk can be mitigated. It depends upon knowing what the 5% who are successful do  differently from the way the other 95% approach the task of forming a  business. The process used by business incubators may give us the clue to that difference.

What Are Business Incubators?

Business incubators are organizations that offer specific training programs for entrepreneurs to nurture fledgling businesses. Incubators generally involve starting a business in a location, somewhat like an industrial park, that is specifically structured to share resources and develop skills for people seeking to become entrepreneurs.

The National Business Incubation Association (NBIA) says that business incubation programs provide entrepreneurs with a guiding hand to help them turn their ideas into viable businesses. Since the first incubator opened in Batavia, N.Y., 50 years ago, incubation programs around the world have been providing client companies with business support services and resources tailored to young firms to help increase their chances of success.

The US Government Says Business Incubators Improve Odds of Success For New Companies

The U.S. Department of Commerce Economic Development Administration (EDA) validates that incubation works. Their research says that business incubators provide communities with significantly greater results at less cost than do any other type of public works project.

Researchers found that business incubators are the most effective means of creating jobs; more effective than roads and bridges, industrial parks, commercial buildings, and sewer and water projects. In fact, incubators provide up to 20 times more jobs than community infrastructure projects (e.g., water and sewer projects) at a Federal Government cost of $144 to $216 per job compared with $2,920 to $6,872 for the latter.

In another EDA-funded study in the mid1990s, it was found that 87 percent of all firms that had graduated from NBIA member incubation programs remained in business; and about 84 percent remained in the incubator’s community.

It is estimated that in 2005 alone, North American incubators assisted more than 27,000 start up companies that provided full-time employment for more than 100,000 workers and generated annual revenues of more than $17 billion. Many thousands more jobs were created by companies that had already graduated from these business incubation programs and now operate self-sufficiently in their communities.

If a strategic focus on innovation and entrepreneurship makes the difference in businesses started in business incubators, a similar focus must certainly work for baby boomer entrepreneurs facing the same problem of starting a business and avoiding the pattern of failure that most businesses experience.

What Are The Core Practices of Business Incubators that Make A Difference For New Entrepreneurs?

The National Business Incubation Association has consistently shown that incubation programs that adhere to the principles and best practices of successful business incubation generally outperform those that do not. They cite two industry principles that effectively characterize business incubation programs around the world, regardless of their focus or mission.

1. The incubator aspires to have a positive impact on its community’s economic health by maximizing the success of emerging companies.

2. The incubator itself is a dynamic model of a sustainable, efficient business operation.

The essence is that incubators provide a structure for entrepreneurs to learn to avoid the problems that typically cause failure. Entrepreneurs learn a behavior modification process to use deliberate business development techniques, business operation by design rather than by accident. Incubators normally admit entrepreneurs into a structured learning experience that expands their skills as they move toward a required level of skill and graduation from the incubator once the skills are developed.

What Can New Entrepreneurs, Especially Baby Boomer Entrepreneurs, Learn From Incubators?

Incubators are about expectations and systems. Incubators strive to be good models of a company that uses systems effectively for their own operations. They use systems to design the training experience of companies that enter their programs. Additionally, they teach their member companies to design and operate effective systems. It stands to reason that businesses created on such a systems model have a better chance of survival.

Baby Boomer Entrepreneurs can learn from the success of business incubators and the businesses they help start. If business incubators have systems that include key elements, your business should have key elements too:

- Commit to the core principles

- Obtain consensus on mission

- Structure for financial sustainability

- Build an effective board of directors

- Prioritize management time

- Develop an effective facility

- Integrate activities into the fabric of the community

- Develop stakeholder support

- Maintain a management information system

How Can Your Business Benefit From What We Know About The Success of Incubation?

1. Find out if there is an incubation service near you. Though most of these are resident programs, a number of variations are often directed by local economic development groups that do not require your business to be resident in an incubation facility. The  the National Business Incubation Association cooperates with many local programs and may be able to help you find out if there is an incubator near you.

2. If you can’t find an incubator, you may want to try a do it yourself approach. Get the best book written on applying the systems concept to business development. Many incubators use this as a a book in their training of new entrepreneurs,This is Michael Gerber’s The E-Myth Revisited: Why Most Businesses Don’t Work and What To Do About It. Each year, the owners of the fastest growing privately held companies in America credit this book as being the most important business book they have ever read. Again, many of the formal business incubation programs are based upon the concepts discussed in this book.

3. Look for Internet based information that can help you develop your own business incubation systems at low to no costs. Especially look for ideas that align with your specific needs in your stage of life as a  Boomer. Remember, you are looking to design a plan that allows you to avoid the most common errors that take place when new businesses are formed. Boomers who really want to make a mark do not have the luxury of running their businesses by the seat of their pants.

In summary, the most important point of incubation is to build a business by design. The first step is defining expectations. The second step is building systems to make those expectations happen.