Hello everyone! Today we'll talk about how to start your business from scratch and even without money. Many will say that this is unrealistic, but I can tell you more than. In this article I will tell you how to do this, I will give examples of 28 business ideas without investments that came to mind and we will talk about this topic in the comments.
What is important to know before starting a business from scratch
This is the most important point in this article. If you do not read it, there is no point in reading further. So, I will say briefly what is important to know, and below in the text I will try to dwell in more detail.
- In business, as in sports! Here, too, your internal attitude to this is important! Your mental attitude. If you are mentally prepared for the upcoming difficulties, ups and downs, then your business will last a long time. If you do not have money, but you decide to start your own business, then be prepared for a long journey. With money, everything is easier, but without it ... You understand.
- What is your business goal? You must clearly understand why you want to do business. “Because a friend is engaged, and the worse I am,” or do you really see a promising and unique business model, ways to implement it, usefulness for others, the reality of making a profit.
- We calculate the risks. - Never start a business with borrowed money if you are not sure that everything will work out for you and you will pay off your debts. - Designate for yourself that point, beyond which you will never, under any circumstances, go.
- Start small. No businessman started out right away with building a corporation globally. Everyone started with something small, many even without money. I think you all know these success stories. There are a lot of such people in the business environment. Never get caught up in large-scale business ideas that require a lot of investment from the outset. Assess your capabilities adequately. It's easy to screw up at the start. And there are also a large number of such people, just few people know them. Personally, I know a lot of similar failures.
- Choose the niche you are good at! Don't start your first business from scratch in an area where you don't know anything. Not everyone can be restaurateurs or fashion designers. But you may be looking to start a business with a partner who understands what you are not good at. Then you can take a chance. But again, agree on everything "on the shore".
- Confidently go to the goal! If you are in doubt or afraid of something, then it is better not to start your own business at all. You must be confident in your abilities and that you will succeed, and also be prepared for the fact that the idea burns out. It is very important to enjoy what you are doing, and then the petty troubles in the business will be easier to bear.
- Quality is important in business! It doesn't matter in goods or services! Never start a business if your offer is inferior in quality than existing ones on the market. Of course, by great chance you can get the first customers, but by doing so you ruin your reputation in the bud and quickly close.
- Not everyone is destined to be a businessman! In Russia, only 5-10% of entrepreneurs, and the rest are employees and unemployed. Such is life, not everyone is given to be an entrepreneur, astronaut, athlete, scientist, etc. You must understand this. I don't remember from whom I heard these statistics, it seems from Oleg Tinkov (if I was mistaken in the numbers, correct me).
Re-read these paragraphs one more time, or maybe several times, because without it there is nothing at all. Any businessman or entrepreneur will agree with me on this. Maybe with adjustments based on practice, but generally agree!
Diagrams of how to start your business from scratch
If you want to start your small business from scratch without money, then only these 4 schemes can do it.
Start a business with services
In 90% of cases, a business without money can be started only with services! This is logical. You earn on your own. It rarely works out with goods, because in most cases goods need to be purchased, and this is an investment.
Start a merchandise business from scratch as an intermediary
With goods without investment, you can start only as a middleman and only if you know how to sell. Because without sales skills, you will not be able to find a client. Rarely does it turn out to find a hot product much cheaper than that of competitors and so that no one except you knows about it. Therefore, always prepare for competition. Next, I will tell you in more detail how to open a business without investing in the resale of goods.
How to develop your business? Where to go, what to do next?
Only half of startups "survive" after 5 years of development, and only a third continue to work after 10 years. What can you do to keep your company afloat for a long time? To stand out and grow quickly in your market? The answer to this question will help you choose the right strategy for your business development.
The reference or baseline development strategies of the company are considered the most well-known and proven in practice.
What is the essence of reference strategies?
They reflect 4 different approaches to the development and growth of a company, they are also associated with a change in the state of one (several) elements, such as:
Each element can be in the following states:
- Existing state;
- New state.
For example, a company might choose to manufacture / sell the same product or start the production / sale of a new product.
There are four groups of business development strategies in total:
1) These are strategies that aim to change what is produced and the market in which this product is presented without affecting other elements.
The company aims to change the product for the better or to manufacture / sell a new product without changing the industry.
Think globally, start locally. Most people who decide to start their own business initially apply their own strategies based on experience in business at the most primitive level. This is evidenced by statistics, unfortunately, it is inexorable. 90% of new firms go bankrupt every year. We offer 7 universal strategic development tactics that you can apply today and quickly succeed in small business development. Here we will talk about ways to help develop your small business in today's competitive environment:
- Implementation of customer incentive programs without reducing prices for goods or services.
- Correct allocation of resources aimed at serving and attracting customers.
- Formation of an image of an expert for business and a leader in the media.
- Increase local popularity in order to promote the brand.
- Outline and Clear vision of the boundaries of your niche in the market for goods and services.
- Analysis of a large business as a competitor, identifying the benefits and benefits for a small business.
- Raising entrepreneurial standards.
These 7 strategies do not require specialized investments, you just have to invest your desire to develop and act. Results are guaranteed! You can emphasize a lot of related useful information from this article. And also quotes from successful strategists of the modern business world are waiting for you.
Develop standard business management skills
Intuition, emotions and advice from acquaintances are better tested in personal life than in business. Therefore, the first thing a budding entrepreneur needs is to improve their organizational standards in three steps:
- Strategic thinking and cold calculations must be embedded in the quality of an entrepreneur even before starting a company. Basic knowledge of marketing strategies, which uses tools to promote goods, set prices, search for new customers, develops a practical way of doing business. It is like a stone embedded in the foundation of a house, so your strategy must be ready before you build a foundation for business development.
- Write down your goals and remember to be real, they should be measured in time and investment, and also have their own localization. When making a decision on any topic, think about your primary goal: this decision brings you closer or rather alienates you from it. Success is the sum of small, deliberate decisions.
- Always take the time to choose the direction in which to move. Otherwise, how do you know where to go?
- Your strategy should include a reward system. Regularly reward yourself for new, even small achievements in order to be always motivated.
The tactics of raising one's own standards of managerial qualities should be applied to all types of strategies, so it comes first. If the level of the manager's quality standard is higher than the competitor's, you have a huge advantage. Develop self-discipline and defeat your competitors by working on yourself. In any strategy, it is important to manage resources, and the only question everyone has is: how are they managed? All four of the above rules will work if there is a created image of a manager and mutual support of employees according to the principle of synergy. Remember, the product itself is not everything! Firms very often focus on the product, motivating it with the old stereotype that is irrelevant in the competitive market: “a good product will protect itself”. The product itself cannot form apart from the three marketing tools: sales, distribution, and price. These elements are mutual and are born only together, creating a coherent integrity.
Strategically develop popularity with your business
How easy is it to find you? Think globally, but act locally, start being visible on your street, your neighborhood, your city. Expand the local popularity of your business with step-by-step strategies. Use the possibilities of the Internet and get interested in geo-targeting for your site. Test modern approaches to doing business, make friends with Google Analytics, check the statistics of your site. Remember, your website is not just a business card, but also a strategic tool, you only have a few seconds to attract a client so that he decides to take advantage of your offer. Think of visual design as an investment in attracting additional customers. Your brand logo should not be a work of art, its task is to convey a thematic message to target consumers. Take a high-quality surprise with the goods, regularly update the nomenclature in the price lists and prices. Fill in the contact information as much as possible, add the service: "Order a free call". Check the correctness of the site display in different browsers on different devices (PCs, tablets, mobile phones). Customers meet your apparel business. Plan a small project to develop the company's image and local popularity.
Only% of customers develop your business
The Pareto principle says about the 80/20 imbalance, which shows that 80% of the effort brings only 20% of customers, and vice versa, the same 20% will bring the business 80% of the income. All efforts cannot be equally designed for all buyers: firstly, it is unrealistic, and secondly, it is unprofitable. Look only at your target customer group, that is, the main market segment to which your proposal is directed. Think of the market as a cake. Your task is to carve out the most beautiful piece of the market for your own business. This does not mean that the big chunk is the best. Think about whether you know your customers not only from a demographic profile angle, but also from a psychological and behavioral one. How do your consumers live, what do they like, what do they expect, what unites them? Only in this way can you find the connecting thread of the proposal with the target audience of interest to him. In your advertising slogans, unleash the clientele problem, control the language of usefulness. Keep an eye on your promotional materials. Are they presented in an accessible language? Have you forgotten to note the benefits for the buyer? It is important for the client to get information from advertising: reliability, experience, safety. If you don't know your customer well yet, use the customer pleasure method. Use the mystery shopping method, that is, the person who will check the quality of customer service in the firm on the principle of observation. Do not be lazy to apply marketing analysis, their benefits can be objective, which you may miss. In practice, marketing tools are fairly easy to apply, and the results can be astounding.
Specialization strategy gives dominant business advantage
Good means a lot, but a lot is not good overall. If you are a beginner entrepreneur, first learn how to compete in a narrow industry. Typical mistakes that restaurateurs make are too long a list of dishes on the menu and, as a result, colossal chaos in the kitchen. The client waits for his order for a long time, after which he receives it in not the best quality. Of course, according to statistics, more purchases are made where there is more choice, but first of all, you should think about your money associated with the development of the assortment, as well as about barriers to entry of new investments. Naturally, this does not mean that he should not expand his activities. Just do it gradually as your business opportunities grow. One of the most important problems is the leftover goods that lie on the shelves. Most often, they bring losses, since they cannot be sold even at cost. The wider the assortment, the more sales, but also the more unprofitable balances. On the other hand, if a wide range of products has insufficient stock of goods, then many customers will be unhappy with the frequent lack of availability of previously purchased goods. With a wide range of products, it is more difficult to maintain a balance of surplus and shortage of goods in stock on shelves and warehouses. Be consistent throughout your time.