So, you have a fresh business idea.Ã‚Â YouÃ¢â‚¬â„¢ve done your research.Ã‚Â You know that there is a market for your product or service, and now itÃ¢â‚¬â„¢s time to build a business.Ã‚Â But thereÃ¢â‚¬â„¢s a problemÃ¢â‚¬â€youÃ¢â‚¬â„¢re broke!Ã‚Â Such is the dilemma facing most entrepreneurs when they first set out to blaze the path toward starting a new enterprise.Ã‚Â If you have an idea for a new business, but are not flush with cash at the moment, be encouragedÃ¢â‚¬â€by simply adopting a few basic principles, you can start your company in bootstrap fashion, which means minimizing your expenses as much as possible, while still spending enough to bring your product or service to the market.
Before you even begin to take any serious steps toward building your business, you have to be absolutely certain that your business model is legitimate.Ã‚Â There is an easy way to do thisÃ¢â‚¬â€ask people!Ã‚Â One of the most common pitfalls that many new entrepreneurs fall into is that they attach ego to the business idea and are afraid to share it with folks who may not like the vision and idea.Ã‚Â You need to do the exact opposite.Ã‚Â You should share your entire business model with at least 5 different, unrelated people in order to gauge their reaction.Ã‚Â These people should be entrepreneurs or business people themselves, but they definitely need to understand business.Ã‚Â If all 5 people think your model is incredible and canÃ¢â‚¬â„¢t fail, then you know you are on to something.Ã‚Â On the other hand, if everyone thinks there are major problems with your business model, then itÃ¢â‚¬â„¢s time to go back to the whiteboard.Ã‚Â This step is 100% critical in starting a new business, and the good news is that it is absolutely free!Ã‚Â No net working capital is required.
Is It Mission Critical?
If you are going to start a business from a position of being cash poor, you need to make certain that every expense and investment you make is absolutely mission critical to bringing your product or service to market.Ã‚Â The only expenses you should incur are those that involve closing deals and selling your product.Ã‚Â This means you donÃ¢â‚¬â„¢t need the fancy office, etc.Ã‚Â You donÃ¢â‚¬â„¢t need a $400 ergonomic office chair!Ã‚Â Only spend cash on things that are absolutely mission critical to you bringing your product or service to the market.
What If You Are REALLY Broke?
If you are in college or have just graduated, and literally have no money or net working capital, you are actually in a great position.Ã‚Â HereÃ¢â‚¬â„¢s the dealÃ¢â‚¬â€most people in life never chase their dreams.Ã‚Â This is a fact.Ã‚Â The majority of people get jobs they do not like, they work at them for 30 years, and then retire.Ã‚Â As a young, smart entrepreneur with exciting ideas, these types of people LOVE to give you money because they tend to vicariously live through you!Ã‚Â This is no joke.Ã‚Â If you are in your early 20Ã¢â‚¬â„¢s and actually have a solid business idea, you will find folks who are willing to take a bet on you and loan you money to start a business.Ã‚Â There are simply two requirementsÃ¢â‚¬â€the business model needs to be legit, and you have to believe in it deeply.
Starting a business with no cash can be done.Ã‚Â Simply follow these few tips and you will be well on your way to success.