The ways to start a business with no capital in South Africa are not as obvious as you may think. If you are clever and careful with any money you have you can begin a new venture at little or no cost to yourself.
Points we cover here to help start a business with no capital:
- Start your business small
- Work from home
- do not hire staff
- Start a business while still working
- Form a partnership
- Use low cost advertising
Many people dream of being successful entrepreneurs. But if you do not have the funds, starting a business with no capital can be daunting. However there are ways you can start a business with little money.
Most entrepreneurs who start new businesses without capital of their own will apply for a loan from a financial service provider. Or will approach potential investors for start-up money.
However, this is not always the best first step. Although you might not be able to fathom how you can run your business with no capital, there are several ways. To get started without money or with very little of it.
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Once you start making money, you can invest your own money back into the business and grow your company in that way.
Although starting a business with no capital or with very little of it may require much more time and effort and may go slowly. At the end of the day you will reap the rewards of having no debt and no investors to pay off.
Tips to start a business with no capital
Start small
Rome wasn’t built in a day, and neither can your business. If you are willing to start very small, you will be able to grow slowly on steady foundations.
There will be no stress of paying back loans or investors and your business will be completely your own. So start with a few clients or sales only and work from there.
Work from home
If possible, do not try and rent an office or building in the beginning.
Clear an area in your home and start work from there. Because you will save on rent and utilities and getting to your office from home will be very convenient.
If your home is too small for your business, ask a family member or friend if they have a shed or flatlet for you to use.
You could offer to pay them a small fee and you will not have to worry about deposits and other fees.
Do not hire staff
Try to do the work yourself if possible. Until your company has grown to a point where you can afford to hire staff off your company’s income.
Refrain from hiring people whose salaries you will be responsible for. If you must hire staff, try to hire as few as possible.
Start a New Business while Working your Current Job
If possible, try to stay in your current position while you start up your new business.
Because new companies are not all that secure, you do not want to put everything you have into a business. Only to watch it crumble and leave you with nothing.
You will have to work longer hours and work harder than you would if you were only devoting your time to one job. However the safety it provides will be worth it.
Form a partnership
It might be hard to do all the work and administration by yourself. Look into forming a partnership with a friend or acquaintance. Because you will be able to share the load and perhaps take on more as a team than you would be able to take on by yourself.
This might also allow you to keep your current job while you start your business.
Low Cost Advertising Can Help You Start a Business with no Capital
Advertising is one of the most important parts of any business. Good advertising is the key to success.
However, you do not need to pay an advertising firm thousands of rands to market your business. You could do it yourself. If you are starting small, word of mouth advertising is your best bet.
Treat your clients like gold and ask them to put a word out for you. If they have received good service they will definitely recommend you to others.
Use social media websites like Facebook and Twitter to advertise your business. Because these websites are invaluable at getting your business known.
Create a free website for your new business with a free website builder like this one from Google. All companies must have a clear, concise and easily accessible website to be successful.
To Summarise
Starting a new business venture in South Africa is not always an easy process. You need all the help you can get in the beginning.
We have learnt some ways to begin without a lot of cash to get started.
So use your wisdom. Don’t make any quick decisions that will get you into financial difficulty.
Use this advice to start a business in South Africa with no capital outlay. And good luck with your new venture. Whatever it may be that you are starting.