| Do you want to start a business, but you have | | | | planners agree that knowledge about a particular |
| absolutely no money to invest in it up front? Don't | | | | business or industry is the best asset you can start |
| despair! You're certainly not alone and you may find | | | | with. If you are an expert in a specific subject (or you |
| that your business will actually turn out better. Chances | | | | choose to become an expert in an area), then you |
| are your business will be healthier and better equipped | | | | should also have useful knowledge about that |
| to respond to change. You'll learn creative new ways | | | | market--the sources, the competition, the major |
| to handle different challenging situations. However, | | | | players, the likelihood of future demand, etc. This |
| success will require a healthy dose of time and | | | | specialized knowledge almost always helps you to find |
| commitment to hard work on your part. | | | | new opportunities and ways to creatively build a |
| When you don't have the money you think you need | | | | business without the need for a fat bank account or |
| to start a business, you may feel isolated and alone. | | | | investment fund. |
| The truth is that starting a business with zero funds is | | | | If you want to start a business from scratch without |
| so common that there is a word for it--bootstrapping. | | | | major funding, you'll have to make up the difference |
| The term comes from the idea that you can "pull | | | | with hard work and a huge investment of your time. |
| yourself up using your own bootstraps." Although that | | | | So it's best to stick with something you are passionate |
| might be physically doubtful, it is possible to creatively | | | | about. You need to believe in what you're doing and |
| gather and apply scarce resources to start a business. | | | | believe in yourself. Successful bootstrapping will require |
| It may not be the most comfortable way to start a | | | | personal sacrifice, so be sure you start something |
| new business, there are advantages to avoiding | | | | that's worth it to you. |
| entangling relationships with investors, lenders or | | | | When it comes to starting a business with zero funds, |
| venture capitalists. | | | | providing services is usually the best choice. Selling |
| Those who support the practice of bootstrapping your | | | | products usually requires a cash investment at the |
| new business into existence point out that companies | | | | beginning to create or purchase inventory. Plus, you'll |
| started in this way are usually healthier and more | | | | have to pay for storage space. But when you are |
| stable in the long run. Why would this be so? Imagine | | | | providing services, you really only need the tools of |
| you've just started a new business with a big wad of | | | | your trade, which you may already own. Lower |
| cash courtesy of some optimistic investors or venture | | | | startup costs will increase your chances for success. |
| capitalists. In this situation, there is very little pressure to | | | | Whenever you consider starting a business with zero |
| make money immediately. There's no real penalty for | | | | funds, you should be open to help from any and all |
| wasteful spending or loss of focus. | | | | sources. Friends and family can be excellent sources |
| But when you're bootstrapping a new business from a | | | | of "in-kind" contributions, like a place to provide services |
| zero cash starting point, creativity and problem solving | | | | or a couch to sleep on when things are tight. Another |
| are your highest priority. There's no safety net of cash | | | | option worth thinking about is working a part-time job |
| to catch you if you fall, so it's essential to keep your | | | | to make your living expenses and building your |
| eyes on the task of creating profit. Not only does this | | | | business the rest of the time. Once your new business |
| make you more successful more quickly, it also | | | | starts showing a profit, you can drop the part-time job |
| provides excellent training for future periods of rapid | | | | and put 100 percent of your time into your new |
| growth. Many businesses often have difficulty if the | | | | endeavor. |
| needs of growth are greater than current cash flow. | | | | Starting a company without any startup money may |
| Business started by bootstrapping don't have this | | | | seem like a crazy idea, but people do it successfully all |
| problem because this is where bootstrappers | | | | the time. The businesses that emerge from this |
| live--using scarce resources creatively to meet the | | | | process are flexible, adaptable, and never have cash |
| needs of business growth. | | | | flow worries. When you start with nothing, it can only |
| Do you have what it takes to successfully bootstrap a | | | | get better. |
| new business with zero funds? Most business | | | | |