I’m delighted to welcome a Guest today as Jeet Banerjee takes us on a road of startups and capital. I’d like to thank Jeet for taking the time to write this post and hope you take some tips from it. Over to you, Mr Banerjee
A common myth many entrepreneurs seem to believe is the necessity for capital to create a startup company. Having capital to use for your business idea from the first day is great, but a lot of us don’t have the money necessary to get started.
Instead of throwing your ideas in the trash, hear me out and see if any of these tips help you create a startup without capital.
1. Partner Up
Entrepreneurship is a team sport. You need a team with varying skills to come together to form the perfect business unit. If you have a great idea and strategy, people will generally want to partner up with you.
Always remember, 100% of nothing is still nothing, whereas 30% of millions is a lot of money. Go to mixers, events, or even look online to find people who can fill in the missing pieces.
2. Offer A Service
While your business idea may not be service-related, offering a service that has strong correlation with your business idea is a way to raise capital.
For example, if you were creating a standing machine that allows people to rent movies through an electronic platform, you could start by simply renting or selling movies. You could transition from a Blockbuster type store to a Redbox platform as you earn enough money to do so.
3. Angel Investors
Believe it or not, a lot of investors offer capital for ideas. Sure they may take a lot more equity than usual, but at least you have the opportunity to launch your startup.
An idea that’s great one year may not be as valuable further down the road. There are many conferences, events, round tables, competitions, or even online resources that can give you the chance to pitch your idea to an investor.
4. Group Funding
One of the most popular ways to acquire funding lately is through crowdfunding websites like Kickstarter or Crowdtilt. Many projects in the last year have not only received huge press attention, but sourced the necessary funding by launching on these sites.
In exchange for funding, you provide your “investors” tokens of appreciation. Group funding websites are free to join and can often reach your goal within a few short weeks.
5. Business Loans
Business loans have their advantages and disadvantages. The advantage is that you can potentially get the money you need to start your business, whereas the disadvantage is having to pay it back with interest in a given period of time.
The other examples don’t require you to lose anything, but a bank loan can result in the loss of money in the future. But if you’re a solid believer in your idea, getting a business loan could be your best option.
Everyone has a great business idea. Often we cannot pursue our ideas or business goals because we don’t have money to get started. However, with the suggestions above, and numerous others, starting your own company can be easy!
Each of the suggestions has their own advantages and disadvantages. Instead of trying to use every single one, try to find one that fits you and your business best. Remember, starting a business does not have to be so difficult!
Jeet Banerjee – @TheJeetBanerjee