Starting business with no money
I know this sounds nearly impossible but people have done this.
You can start business without money yes obviously it be easier to start with money. This has happened a lot people have start business without money one of the most famous cases was Dana White who found out the owners of the UFC were trying sell got on to his friends Fertitta brothers owner Casinos to buy the UFC in in turn gave him 10% of the company as a finders fee.
Ryanair the Europe biggest airline O’Leary returned from a visit to U. S. Southwest Airlines convinced that Ryanair could make huge inroads into the European air market, at that time dominated by national carrier. He competed with the major airlines by providing a “no-frills”, low-cost service. Flights were scheduled into regional airports, which offered lower landing and handling charges than larger established international airports.
Ryanair was start by Tony Ryan who hired Michael O’Leary to manage Ryanair. Michael O’Leary had work with Tony as account. After friendship build between them he hired him as assistant than had him manage Ryanair. Michael pretty much copy southwest airlines making some changes which could be argue didn’t improve business model such as bad customer service. Sometimes networking can be used to start business without any money.
The middle man method this is finding product sell as the middle man. The founder of Nike Phil Knight was he first start out as young graduated, he negotiated exclusive right to sell the shoe Onitsuka Tiger (now ASICS) in America. The profit he used from selling shoes was then use to Nike. The middle man method was also use by Ray Kroc at time was milkshake mixer salesman he did use some of own money however I thing agree it worth talking about. He seen two brothers Richard and Maurice McDonald putting in a big order for milkshakes. He was curious about this McDonald’s restaurant he went there he was really impressed with system of McDonalds how they were able to sell food so quick and cheaply compared to any other restaurant. He made deal with them he started franchising McDonalds making the huge business you know today. It was really happy story as Ray Kroc did screw over Richard and Maurice McDonald.
Another case of a finder’s fee. Show this is nothing new look at the writer James Joyce live in Italy Trieste in 1909. representative of some cinema owners and businessmen from Trieste set about opening the Volta cinema, he went to see Valentine James Roche at the Dublin Woollen Company on the same occasion and secured the Triestine agency for Irish tweed. Now none of this work out for James Joyce however few years later the cinema business and Irish tweed business were set up by someone else they were very profitable. If they had been successful Joyce would have been given a finder’s fee and small ownership like Dana White got from UFC. Finder’s fee is a commission paid to an intermediary or the facilitator of a transaction.
This is use for small business but they use angel investors. These wealthy people who invest into companies for equity (ownership) in the company “In 2013, 41% of tech sector executives name angel investors as a means of funding.”
Crowdfunding can be used for example if you were making comic book or video game or whatever. You crowd fund costs of marking comic book for example if you get money not only is the cost of the comic book pay for but you have also found audience for your product.
Now as said early even if someone is bad, we can learn from them Elizabeth Holmes started the company Theranos which was a big scam. But what we can learn from her is it possible to raise money if you have a good pitch and good idea obviously don’t commit fraud. company Theranos was started in 2003 nearly one year later Holmes had raised $6 million. By the end of 2010, Theranos had more than $92 million in venture capital. As said earlier if smart and good at communicating people will give money if do a good presentation and have good business. Plan you will hear people say I have good business Idea but I don’t have money it won’t be easy but there are ways of getting funding from venture capital. If able to give good presentation and have good business plan. Elizabeth Holmes pretty much copy Steve Jobs presentation skills even changing voice to sound similar to Steve Jobs and even wearing his trademark turtleneck. She also had bit of luck in the people she knew before start of the business but my point is learn from other people by watching.
Let me get you the mind of angel investor or venture capital. Different between angel investor is individual. venture capital is the same thing but company. angel investor was explaining how angel investing works he said it about odds they expect some business to fail which can give them tax right off some business to do so-so business but they are excepting 1 in 10 venture capital to do so well it better for the other 9 business plus profit. In other words, it is a calculate bet. While business plan are important and so is the idea important sometimes investors going with guts so don’t be afraid to use emotion. Sometimes business ideas are similar but what separates them is person sometimes the angel investor or venture capital is beating as much on the person as they are on the business.
There is saying never use your own money. I don’t fully agree with I would never invest company where the owner is not using their own money. Lot of tech companies will build the app or software first which doesn’t really cost that much and then use venture capital to raise the money. The case with property developers they will pre-sell houses or apartments. Will only start construction after until a certain proportion of the house’s apartments are pre-sold. This is done with some luxury products as well. This mention is use by drop shipping. Drop shipping “where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product using the drop shipping model, it purchases the item from a third party and has it shipped directly to the customer”. It other words say selling product for 100 dollars the customer gives 100 dollar you than pay drop shipper 75 dollars make 25-dollar profit if your able to get lot of sales that will be big profit. But if don’t get lot of sales it does not cost any money as you are not keeping the inventory.
I want to plant seed in head that there are ways of starting business without any money or very little money if you are smart and think outside the box. In many ways this mental exercise of overcoming perceived limitations. For example, lot of people want start restaurants but these businesses have high failure rate which a lot of people don’t realise. If person want to start restaurant, they start it small steps I have seen it where people will start cooking from home sell a bit food. Then start market stall work self’s up to food truck and then work themselves up to food restaurant. By way some food trucks can be so profitable or food stall owner’s workout it more cost effective to do business that way than doing restaurant with all its overhead costs that come with running restaurant. Sometimes when looking at starting business think of small gradual steps. I know up above I have talk about some of the more grander way of doing thing but small gradual steps can really work. There is nothing stop you from using both approaches the above ways will just skip some of the steps.
If you have business idea or if don’t think of any business and write down some small steps to get to that business. Look if don’t want run business that fine this more mental exercise to get the mind working and seeing the small steps.
Starting business with no money
- Finder’s fee
- Venture capital
- Small steps
- Crowdfunding
- Middle man (drop shipping)
I want to plant seed in head that ways of starting business without any money or very little money if you are smart and think outside the box, you can come up with ideas.
