6 Ways To Start A Business With Little To No Money
There's always talk about entrepreneurship and how it can be the key to making your financial dreams come true, but there often isn't as much talk about the sacrifices—especially those that hit your pockets hard—required to get a business off the ground, nevertheless keep it running. And maybe you've got a great idea, but when you're out there just trying to live a normal life, who can even think about taking money out of the I'm-barely-making-ends-meet account and putting it toward starting a business? Research even shows that one of the top reasons women don't start businesses is because of the startup costs required.
Well, we're not into discouraging our aspiring bosses out there. We're here to talk solutions for starting a business with little money. Here are a few ideas inspired by those who have done just that so you can get started on making your business vision a reality:
1. Start small and scale.
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Sometimes that infamous quote, "Go big or go home," might not apply to startup costs. Take a nod from the founder of The Mane Choice who is now CEO of Olbali Corp. Courtney Adeleye started her line of haircare products by making the first product in her home, and she took advantage of free resources such as YouTube and Instagram to build her customer base. Within a few years, she was able to turn those small efforts into millions of dollars in sales and expansion into collections of products in stores likeTarget.
Get out of your own head and get into facts by reading up on what it truly costs to start your business and then calculate, based on your finances and lifestyle, what you can realistically afford to do.
For example, if you want to sell clothes, maybe start with one cache item, see how that sells, and then expand the line. Want to offer a service? Start with one niche that you can excel at, track the success, then pivot and change your strategy where necessary. Want a storefront? Try a mobile or online business first, build up your capital and customer base, and create a plan for saving up and financing for your grand opening at a later date.
2. Pool investors.
There are many ways to do this, but don't let that overwhelm you. (Also, don't be intimidated by the big-money talk or the multi-millionaire professionals who are the movers and shakers.) If you have a good product, prototype, brand, or idea, think strategically about who could invest in your launch and get in the game.
Angel investment organizations or firms are a good place to start (and there's a good list of those that support women- and minority-led startups here). Platforms created by women like Arielle Loren, founder of 100K Incubator, are also great resources for finding investors and networking with other entrepreneurs.
You'll want to weigh the pros and cons of taking on an investor to start up your venture. Getting money is great, but investors sometimes have authority over important aspects of your business including how the money is spent or even the name of your company. They might also, down the line, play a role in how you run your brand or even decide whether you remain as the leader at all.)
Another great option is crowdfunding or microfunding, where you use a platform like Kickstarter, present your business idea or project to the world, and raise funds via community investors.
Dawn Dickson, founder of Flat Out Heels and CEO of PopCom, was able to raise more than $1 million to launch and expand businesses via supporters in her community. Other entrepreneurs have used this method and raised funds even without having a physical product, gauging interest and building momentum via pre-sales, offers of equity, and prizes.
Oh, and don't overlook networks within your family, your school, your civic organizations, or your workplace. There might be someone less than six degrees of separation from you who is willing to invest just to gain a percentage in profits or ownership or to contribute to the greater good.
3. Get into a pitch competition.
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Be inspired by the story of Stephanie Smith, founder of Digital Insomnia, who won $25,000 to put toward creating a digital marketing simulator prototype. Or the story of Range Beauty founder and CEO, Alicia Scott, who was able to take her brand from $300 to $300K by becoming a master of pitching her business. Organizations and businesses often sponsor pitch competitions that offer thousands of dollars in startup funds as prizes, and this is a great way to get that financial boost you need to start your business. Some even cover all expenses and offer additional support resources like mentors and tech tools.
Sharpen up those public speaking, marketing, and sales skills, sis, and make sure your business plan is a solid one. Invest in a coach, watch competitions online, or attend a few so you can hear common feedback from judges.
The better prepared you are, the more likely you'll come out the victor. (Oh, and of course, here's a great list of a few to start with. Yep, you're welcome.)
4. Outsource and partner up.
Any time you can split the costs of something, you save, so if you have a similar idea as someone else or you might be serving the same audience, why not partner up and pool resources? Malaika Jones, Nia Jones, and Tai Beauchamp, the three Spelman sisters who founded wellness brand Brown Girl Jane, are a great example of how combining talents and resources for launching a brand is more than smart.
Let's say you want to start a business building and selling phone apps. Well, maybe there's a tech professional in your network (or someone you could get to know through, well, networking) who wants out of the 9-to-5 life and has plans to transition into tech entrepreneurship. Pitch your idea and see where there might be common goals. Match their skills and network with yours and you might have a winning combo in which you can split the costs of bringing an idea to life.
Not too keen on partnering up and sharing profits? Many online vendors can handle certain aspects of getting your business off the ground in a more cost-effective way due to their level of experience or expertise. It might be a better idea, in the long run, to simply pay them a one-time fee to handle those areas.
Contacting a consultant with skills in coming up with cost-effective strategies for starting your business can sometimes save you money in the long run. LinkedIn is a great place to start to find other professionals and entrepreneurs to become partners or consultants, and nothing beats attending events and seminars (whether virtually or in person) where smart business-minded and successful folk congregate.
5. Try low-investment retail.
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Just a disclaimer on this one: We're not talking about "easy" or "get-rich-quick" ways to start a business, and you'll want to be aware of all risks associated with these sorts of businesses (or any business, for that matter). That being said, dropshipping, print-on-demand, and direct sales are options for breaking into a business without shelling out a lot in upfront costs.
Picture this: You design something for T-shirts, mugs, or other custom items (or pay a one-time fee for someone else to), upload the design on a third-party supplier portal, build your store on a platform like Shopify (which costs less than $50 to launch), and then let the third-party supplier take care of the production, inventory, and shipping.
Products are made only after orders are received (thus, printed "on demand"), allowing you to avoid several overhead. Sites like Amazon offer dropshipping, and there are other platforms that allow you to create your own marketplace without having to take care of order fulfillment.
If you've ever heard of Avon, Mary Kay, or Tupperware, then you know a bit about direct sales. With this model, you might have to pay a registration or starting fee (several of which are less than $100), be offered an optional, moderately priced starter kit of products, or both. You'll earn a commission on sales (with some as much as 50 percent) and you'll be able to tap into a network of support from others in the industry.
The direct-sales market includes selling almost anything nowadays—cosmetics, kitchenware, coffee, health and wellness supplements, hair extensions, appliances, even medical scrubs—but be sure to look into the fine print on quotas, refund policies, and earnings or incentive models. Avoid scams, and be sure you have a realistic understanding of the sales savvy, time commitment, and financial investment required for success in these types of businesses.
6. Be patient and save up.
Some of us want to start something without worrying about a loan to pay back or investors to answer to, so a savings plan is the best option. If you don't have enough money right now, save up. It may take a bit longer, but hey, you have to start somewhere. Karen Young, founder of Oui The People, a personal care brand, saved up $1,500 while working for Estee Lauder to launch the beginnings of her business. Shana Cole, founder of The Shana Cole Collection, used $4,000 in savings to launch her first line of lipsticks and expand her customer base from Jamaica to the U.S.
Slow and steady can win the race, and if you're able to be disciplined, set a goal, and stick to a plan, you'll eventually have the money you need to get started. Think about it: Saving just $5 a day can go a long way. In one year, you'll have more than $1,800 for your entrepreneurship adventure.
Look at your current budget and needs, and find areas where you might be able to cut back or adjust in order to pour into your "Business Launch" fund. Also, be sure to look into savings accounts that have higher interest rates or high yield options so you can get the most from your efforts. Squirrel away your next tax refund, or find ways to give your savings a boost such as reselling items or downsizing your home or car. Implement settings like automatic transfers or deposits to a separate account so that you'll be sure to hit your goal in the time you need to.
Finding the money to start your business on a small (or barebones) budget is all about being creative and figuring out the best route for your future. The key is to at least take that first leap, with research and planning as your parachutes, and just go for it.
For more business tips, career advice and profiles, check out the xoNecole Workin Girl section here.
Featured image by Getty Images
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ItGirl 100 Honors Black Women Who Create Culture & Put On For Their Cities
As they say, create the change you want to see in this world, besties. That’s why xoNecole linked up with Hyundai for the inaugural ItGirl 100 List, a celebration of 100 Genzennial women who aren’t afraid to pull up their own seats to the table. Across regions and industries, these women embody the essence of discovering self-value through purpose, honey! They're fierce, they’re ultra-creative, and we know they make their cities proud.
VIEW THE FULL ITGIRL 100 LIST HERE.
Don’t forget to also check out the ItGirl Directory, featuring 50 Black-woman-owned marketing and branding agencies, photographers and videographers, publicists, and more.
THE ITGIRL MEMO
I. An ItGirl puts on for her city and masters her self-worth through purpose.
II. An ItGirl celebrates all the things that make her unique.
III. An ItGirl empowers others to become the best versions of themselves.
IV. An ItGirl leads by example, inspiring others through her actions and integrity.
V. An ItGirl paves the way for authenticity and diversity in all aspects of life.
VI. An ItGirl uses the power of her voice to advocate for positive change in the world.
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The Power Of Your Big 3: Understanding The Astrological Significance You Hold
Explore your sign’s 2024 horoscope predictions to learn what is in store for you this year in love, career, and more. Check out the love compatibility of each sign to learn more about zodiac pairings and all things compatibility.
Astrology has become even more mainstream and a phenomenon than it ever has in the past. We have gone beyond the, “What’s your sign?” and have moved into “What’s your big 3?” seemingly overnight, and rightly so due to the significance of knowing these important details. Your Big 3 in Astrology represents your sun sign, your moon sign, and your rising sign.
This trifecta is thought to be one of the most significant details of your birth chart and gives you and others more of a full-picture look at who you are beyond just your sun sign.
What Does Your Big 3 In Astrology Say About You?
Knowing your big 3 is important, especially if you are someone who has never really resonated with your sun sign. You read about what it means to be an Aries, but may not align with what you see or your experience with other Aries. Meanwhile, the whole time, you have a Libra rising, the complete opposite sign of Aries, and this is why you have always seen yourself as a more laid-back and less confrontational Aries.
Elements hold a key role in your birth chart and having a big 3 where the elements are all compatible or the same often signifies someone who knows who they are and is comfortable in their skin. Whereas someone with a different element for each part of their big 3 may have challenges with identity or defining who they are or how they want to present themselves. It’s a different type of perspective when looking into your big 3, and it helps you see where your strengths and needs are in life, and how to tap more into this potential.
Your Big 3 In Astrology Explained
Your big 3 can help you navigate life by understanding which part of you comes out more in different circumstances. At home, you are most like your moon sign, when you are out and about, you are most like your rising sign. Whether you are at home or out and about, your goals, purpose, and interests are most like your sun sign.
You can find out what your big 3 is by looking up a ‘Birth Chart Calculator’ on your search engine, typing in your birthday details (you will need to know your birth date, location, and the exact time you were born), and generating your birth chart.
Read below for your sun, moon, and rising signs.
YOUR SUN SIGN
Your sun sign represents the core of you and what motivates you to shine and be your best self. This is your personality, goals, purpose, identity, ego, interests, direction, and where you light up in life.
FIRE SUN (Aries Sun, Leo Sun, Sagittarius Sun)
If you are an Aries sun, a Leo sun, or a Sagittarius sun, you are outgoing, confident, fearless, and in tune with yourself and your personal goals and desires in life. You go after the things you want, and you are not afraid to take up space. You are someone who prefers to be more independent, and you are often in more leadership roles in life.
EARTH SUN (Taurus Sun, Virgo Sun, Capricorn Sun)
If you are a Taurus sun, a Virgo sun, or a Capricorn sun, you are grounded, dependable, loyal, hard-working, and logical. You prefer the finer things in life but also work hard to get where you are. You are someone others feel they can rely on, and you are often a support for other people in your life. You are very connected to the material sides of life, and have a gift for manifesting.
AIR SUN (Gemini Sun, Libra Sun, Aquarius Sun)
If you are a Gemini sun, a Libra sun, or an Aquarius sun, you are light-hearted, free-flowing, intelligent, and communicative. You speak what is on your mind, and you love to connect and communicate with others. People know you for the things you say and your out-of-the-box ideas, and you are someone who is open-minded and provides a safe space for people to be authentically themselves.
WATER SUN (Cancer Sun, Scorpio Sun, Pisces Sun)
If you are a Cancer sun, a Scorpio sun, or a Pisces sun, you are thoughtful, generous, emotional, loving, and compassionate. You care deeply about the people you love, and you are always there for others. You may be more emotional than most, and this is due to your strong intuition and open heart. You are creative, inspiring, and motivated towards connection in life.
YOUR MOON SIGN
Your moon sign represents your emotions. This is the way you express yourself emotionally, how you process your emotions, what you need in love, what makes you feel safe and nurtured, your desires, intuition, your inner world, and what’s going on beneath the surface.
FIRE MOON (Aries Moon, Leo Moon, Sagittarius Moon)
If you are an Aries moon, a Leo moon, or a Sagittarius moon, you are someone who is not afraid to communicate your emotions or how you are feeling, and you can feel your emotions from a mile away. You are confident in yourself and are someone who stands up for what you feel is right. You have a strong need to be seen and heard in your relationships, and a certain type of understanding is needed for you to emotionally thrive. You may have some challenges with anger or high energy and are working through emotional impulses in this lifetime.
EARTH MOON (Taurus Moon, Virgo Moon, Capricorn Moon)
If you are a Taurus moon, a Virgo moon, or a Capricorn moon, you are someone who is emotionally grounded, safe, comforting, and logical. You aren’t overly emotional and may not show your emotions to people much at all, but that doesn’t mean you don’t have them. You think before you speak, and you process your emotions before acting on them, and you tend to be more down-to-earth and understanding when it comes to other people’s emotional worlds as well. You are someone people go to when they need someone to talk to you as you are a very good listener.
AIR MOON (Gemini Moon, Libra Moon, Aquarius Moon)
If you are a Gemini moon, a Libra moon, or an Aquarius moon, you are someone who is fun, outgoing, and emotionally open-minded. You don’t like heavy emotions or too much emotional drama, and you tend to be more go-with-the-flow in this area of your life. Good conversation and mutual understanding are very important to you in your relationships and you want funny banter and inspiration in your connections with others.
WATER MOON (Cancer Moon, Scorpio Moon, Pisces Moon)
If you are a Cancer moon, a Scorpio moon, or a Pisces moon, you are someone who lives by their heart and values your emotional world deeply. You crave a deep type of intimacy in your partnerships and you need a partner who is going to give you that type of emotional connection. You are more private with your emotional world and you tend to hold a lot in, but this can often lead to sudden outbursts as well. Overall, you are the definition of emotion and others learn a lot from you on what it means to love and to feel.
YOUR ASCENDANT (RISING SIGN)
Your ascendant sign represents your perception and the energy you put out into the world. This is the way you come across to others, the way you express yourself, your physical traits and aesthetics, how you manifest, society, and what you expect from the world around you.
FIRE ASCENDANT (Aries Rising, Leo Rising, Sagittarius Rising)
If you are an Aries rising, a Leo rising, or a Sagittarius rising, you come across to others as confident, bold, and stylish. You are known for the way you look or the way you present yourself, and you are usually adorned in bright colors or wearing something that others take a lot of notice of. You are someone who walks into a room, and all eyes are on you, and you love that. You want to be on the move and on the go, and you love to show up in the world exactly as you are today. You see the world with a lot of possibilities and like it's yours to have fun and enjoy yourself in.
EARTH ASCENDANT (Taurus Rising, Virgo Rising, Capricorn Rising)
If you are a Taurus rising, a Virgo rising, or a Capricorn rising, you come across to others as responsible, beautiful, natural, and dependable. You are a hard worker, and you may be known for your career or the work that you do. You are someone who walks into a room and people feel an immediate sense of comfort and like you are someone they can trust. You have strong values and goals, and you are someone who knows what they want. People love to be around your down-to-earth energy, and you make others feel safe and grounded.
AIR ASCENDANT (Gemini Rising, Libra Rising, Aquarius Rising)
If you are a Gemini rising, a Libra rising, or an Aquarius rising, you come across to others as outgoing, friendly, and talkative. You see the world as a place to learn, connect, and be inspired, and you are on a quest for knowledge and understanding. You connect with people from all walks of life, and you tend to have a pretty open-minded and unique friend group. You care a lot about your style and aesthetic and always strive to be authentically you wherever you are. You can talk to people for hours and are often meeting new people and making new friends wherever you go.
WATER ASCENDANT (Cancer Rising, Scorpio Rising, Pisces Rising)
If you are a Cancer rising, a Scorpio rising, or a Pisces rising, you navigate life through the lens of your emotions, and you are deeply connected to the undercurrents of life. You are ruled by your emotions, and this side of you is not something you can keep hidden away easily. You get emotional when you think about society and others at large, and you want to be known for the kind and sincere person you are. When you walk into a room, you feel other people's energy right away and are highly empathic and intuitive.
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