Are you wondering how to start a business with no money? This is one of the most frequently asked questions I get. When people ask me this, it tells me a lot about them. Chances are they are struggling with having no money and they have no idea what to do about it. Now, on social media, they see all these people who made it as an entrepreneur, and they think they could do the same.
Well, I personally believe that’s a dumb idea. Why? Because I think that the worst time to start a business is when you need money. It makes you overly eager, unprepared, and desperate. Think about it: Have you ever talked to a salesperson who desperately wanted to sell you something? How did you feel? Almost everyone feels put off if the other person is too desperate. When you have no money right now, that desperate person could be you.
But since you are in a bad financial position, you are probably looking for a way to change. You think starting a business could be your ticket out of your financial problems, right? But that couldn’t be further from the truth.
In reality, it takes a long time until a business becomes profitable. Starting a new business isn’t likely to be a get-rich-quick scenario and it won’t make you money fast. And guess what? Starting a business costs money.
I know, you see all these successful entrepreneurs on the internet. They make it look very easy. But what you don’t see are the struggles and hardships these people went through. Their story might look like an overnight success, but in reality, a lot of work, effort, time and money were involved.
So in this article, I want to debunk some myths about how to start a business with no money.
Why You Don’t Have Any Money
As I mentioned earlier, many people ask me how to start a business with no money, or how to raise money. But what’s the real reason why they don’t have any money? Chances are, they don’t have much in terms of skills, experience, or knowledge. If you don’t have any money to put into your business idea, it means you’re probably not ready. You’re not prepared.
It’s best to think twice because you could be setting yourself up to fail. Starting a business requires more time, effort and resources than you could possibly imagine. Starting a business requires resources like money, and it also requires a lot of mental resources.
When you can’t find a job or find a way to make the money you need to start a business, what makes you think you would be a successful entrepreneur? Dealing with money is a basic skill you have to acquire first. Perhaps you need to learn how to manage your money.
What it Really Means to Run a Business
To run a successful business, you need to be able to lead others, have self-control, have a vision for the future, and have many more skills under your belt. What’s more, you need the number one ability that every successful entrepreneur has.
What ability am I talking about? I’m talking about being able to endure pain for a long period of time. Starting a business is far from easy and there will be times when nobody believes in you. Times where you are days away from getting shut down and nobody can help you. You might have this vague idea on how hard entrepreneurship is – but let me tell you, in reality, it’s 10 times harder.
I know, this isn’t the answer you wanted to hear. You want me to say, “Yeah, go for it!” But I won’t lie to you. I want to set you up for success. So if you are still wondering how to start a business without money, consider my advice below:
Know That Entrepreneurship is a Big Risk
Entrepreneurship is a risky endeavor. The problem is, the media makes it look very easy. Too easy. We see these success stories on magazine covers and on social media. The media glamorizes the entrepreneurial ideal of being your own boss, and many people who aren’t fit to be an entrepreneur will chase this dream scenario. Suddenly, everybody wants to do their own thing, earn lots of money and live like a Hollywood star.
It’s easy to get confused with all this information out there. You are probably not aware at which level you are at right now and witch advice suits your current level. So when you hear tips on how to start a business you automatically think it’s good advice for you. But maybe you aren’t there yet. Maybe you should focus on other things first before you are ready to start a business.
Many Businesses and Start-Ups Fail
Because ultimately, about 9 out of 10 businesses fail. Over 90% of small businesses fail in the first five years. You don’t see those stories in the media, but it’s the harsh truth. Why do they fail? Because they entered their entrepreneurship with wrong expectations and poor preparation. I don’t want you to fall into the same trap.
Now, let’s say you would belong to the 10% who make it. That still wouldn’t mean that your business thrives. Many of the entrepreneurs who don’t fail are just surviving – but not thriving. They hardly make ends meet and don’t have a glamorous life. After-tax and all expenses deducted- not much money is left for them.
It’s the entrepreneurs that made it big who appear on the cover of a magazine. The mega-successful entrepreneurs are the ones you usually read about, so it’s my job to give you the more realistic, less glamorized version of the story. The thousands of entrepreneurs who fail won’t typically be mentioned in the media.
Don’t Start a Business For The Wrong Reasons
Why are you asking how to start a business without money? Likely because you want to make money. However, if you’re struggling financially, it’s the worst time to start a business. As I already mentioned, you are probably not ready.
But there are other reasons why people suddenly want to start a business. Maybe you are fed up with your boss and think you can start your own thing? That’s a very dangerous thought. Being fed up with your boss doesn’t automatically make you a good entrepreneur. If you don’t have any other reason for starting a business, you probably won’t succeed.When you start a business, make sure that it’s actually something you want to do. You don’t do it for money or revenge. You start a business because you are an entrepreneur, to begin with, and creating things is what you do. Click To Tweet
If you truly want to do this even when you know how hard it is, then save up money first and get yourself mentally ready. It might be a difficult journey for some time.
Not Everyone is Cut Out for Entrepreneurship
Just how not everyone can be an Olympic swimmer, not everyone can be an entrepreneur. This is because there are several important skills that are required to be an entrepreneur. Very few people possess these traits. These include leadership skills, networking skills, sales skills, and many more.
Most people who start a business for the first time are overly optimistic- Instead of predicting obstacles and having a plan for each potential problem.
If you really are keen on starting a business ask yourself these crucial questions:
- What could possibly go wrong?
- What do I not know?
- Which assumptions I’m making?
Don’t be too optimistic. Instead, prepare yourself for possible downfalls. If you face an obstacle what will you do?
Most people aren’t prepared for what’s for possible though times, and they’re too optimistic about what’s coming. This is just one example of why so many people are not cut out for entrepreneurship.
Do You Have What it Takes?
Years ago, I was having lunch with my mentor, and he asked me what I think is the number one skill that an entrepreneur needs to have. I thought about the qualities I thought an entrepreneur should possess, such as having a vision, being able to take the lead, and having determination. I kept listing qualities similar to these, and my mentor kept saying that none of them are the number one quality of a successful entrepreneur.
Although all of these qualities are important, none of them are the must-have. My mentor said, “The number one quality of a successful entrepreneur is the ability to endure pain for a long period of time.” When your friends and family are against you, the marketplace is against you, and the world seems to be against you – you must endure the pain. In those dark days, you’ll be in pain because you’ll feel very alone. You’ll feel like nobody understands you. Many people can’t endure this pain long-term – and that’s why they’re not cut out for entrepreneurship.
How To Start A Business With No Money?
By now you know, the short answer to this is – “you don’t”.
But there are some things you can do instead. These things will prepare you, so you can still start a business later – if that’s what you truly want.
If you currently don’t have money, and you want to start a business, get some steady money coming in first. Work a day job. Then, in the evening when you’re off work, focus on building your business. Millennials call this the ‘side hustle’, and they don’t get ahead of themselves by quitting their day job.
So let’s say you have a day job that earns you $2K a month. You build up your side hustle. Once it earns you $2K,$3K or even $5K you can quit your job and pursue that full time.
When you have some money coming in, you can start thinking about the type of business you want to start, and how much money you’ll need to start it. However, I don’t think everyone is cut out for starting a business – regardless of whether or not they have the money to do so. Entrepreneurship isn’t for everybody.
How to Find a Job
You are asking me how to start a business with no money. My answer is: go make some money. You see, most people sit around their couch and complain. They have all these ideas but they never follow through. Don’t be like them.
It doesn’t matter which job you get. Anything that pays your bills and lets you eat is fine. If you struggle to find a job, how successful would you be as an entrepreneur? Chances are, not very successful. So get your foot in the door by finding a job first and pursue your “side-hustle” in your free time.
Develop The Right Skills Before You Start a Business
Now you might be wondering, what could this “side-hustle” of yours be, to earn the money you need to start a business? Building up a business and working a day job at the same time is a lot of work.
That’s why I personally would advise you to use your spare time to develop a High-Income Skill. What’s that?A High-Income Skill is a skill that you can learn that potentially earns you $10K a month. Profitable high-income skills are public speaking, programming, copywriting and selling high-ticket offers over the phone (which is High-Ticket… Click To Tweet
High-Income Skills are great because they are always in demand, you can charge a lot for the service, and they don’t depend on the current economy. Having such a skill gives you unshakable confidence because it allows you to earn money almost at will. You need to put in the work and master that particular skill, though.
How To Start A Business With No Money: Follow The Wealth Triangle
If learning how to start a business with no money is truly your wish, here is how I would approach it:
As I said, first you get a job – really any job you want so you have your bills covered. In your spare time after you get home from your regular job, you develop your High-Income Skill. Once this special skill earns you enough money, you can quit your job and pursue the skill full time.
You want to get to that $10K a month. Why exactly $10K? From my experience, $10,000 is magically number. Once you reach that monthly income, you rarely fall back to a lower number. Your life’s standards adjust and you naturally want to sustain that amount of income. That’s why I suggest reaching that benchmark.
Now, when you increase your monthly income to $10K you can start thinking about building your business. It still won’t be that easy and it probably will take you some time. Many businesses don’t produce any profit in the first few years. So keep that in mind.
This is a very basic path I’m laying out for you, based on my principle of the Wealth Triangle. According to the Wealth Triangle, you need three things to unlock your wealth:
These three things are:
1. A High-Income Skill
2. A Scalable Business
3. High-Return Investments
All of this sounds easier than it is, however. Treat it more like a basic blueprint, not as rules set in stone.
It might take you months, it might take you years. But as long as you are moving towards your goal step by step – you are doing good. You are doing more than the rest of the world would be ready to do. Only very few people have the capacity to chase their dreams. To make little improvements every day. Even when nobody seems to notice your improvement at all.
You Don’t Have to be an Entrepreneur to Make Good Money
Do you plan to start a business to earn more money? If so, you may want to reconsider.
You don’t have to start your own business or be an entrepreneur to make a lot of money. In fact, you can make very good money by having a high-income skill. As I mentioned, some of my students earn $10K with their high-income skill. Then, they take part of that money and invest it. That way, you’ll have just as comfortable of a life as a successful entrepreneur.
When you are just starting out, focusing on your high-income skill is superior to any business idea. The reason for that is, no business will make you money as fast as a high-income skill can.
Since your skills depend on you, nobody can take them away after you mastered them. Even if the economy is bad and businesses are getting shut down, you still have your skills. No country can ask you for a tax on your skill. And compared to formal education like college, High-Income Skills are often much cheaper to acquire.
That’s why when people ask me how to start a business with no money, my answer is, develop a High-Income Skill first.
What Were You Born To Do?
By now, you are probably wondering which High-Income Skill you should learn. Which one brings you the highest return in the shortest time? The answer is, it depends on your personality and your natural talents. If you are more extroverted, you will be naturally good at certain skills. If you are introvert, you might better pick another.
People frequently asked me which high-income skill they should acquire. For that reason, my team and I developed the High-Income Skill quiz. When you take the free skills quiz, it will tell you exactly which High-Income Skill fits with your personality. It’s the fastest way to find out what you were born to do. It’s a good idea to start with the skill that the quiz tells you you’re best-suited for. Later, you can learn other High-Income Skills and profit from their combined power.
So, do you want to find out what your High-Income Skill might be?