10 Useful Things to Know to Start an Online Business with No Money
A lot of people would love to start an online business. Unfortunately, not everyone has the capital to go as big as they’d like when setting it up. However, many people will start one with having little or no money. All it takes is determination, motivation and a willingness to learn as you go. This isn’t saying that business education is a waste of time. On the contrary, a good education could be worth the investment. But not everyone has the funds to go back to school, let alone start a business. So, what should you know when you’re ready to step up and build a business from the ground up without a dime to your name? Well, here are 15 things you might find useful about how to get into an online business when you’re broke.
1. Identify Your Target Market
In 2014, it was discovered that 42% of failed startups were from the result of a poor market for products and services. This didn’t mean that the ideas themselves were bad, but that the immediate market had no use for the business. For example, it would be difficult to sell air conditioning units to people living in Alaska. From the perspective of an online business, this will be more centered around marketing. If you offer a specific service or product, you need to make sure the right people are getting those advertisements. This may take a bit of research as you need to identify who will be the most interested in what you offer. Thanks to the various marketing tools available on the Internet, this process can be easier than you might think.
2. Start Small
You don’t have to step into the world of business with an extensive portfolio or a vast array of goods to sell. When you have no money, starting small gives you the chance to build up the company. Some owners started with just a few items to sell out of their basement and expanded into larger facilities. Again, this centers around how well you market the brand and how much effort you put into the business. Even the smallest of online startups can attract a consumer base with the right ads or the perfect comment in social media. It’s all about building a reputation for excellent service. Let the income of the business provide its own expansion.
3. Don’t Underestimate the Competition
Because it’s easy to get the ball rolling for an online business, you need to be aware of the competition. You’re not the only one trying to make a living off of the Internet without an extensive bankroll. In fact, this is often one of the top 10 reasons why many businesses fail according to many experts. Starting an online company without money doesn’t guarantee failure. It doesn’t guarantee success, either. It’s worth your time to perform your own kind of reconnaissance to discover how the other guys are working. Don’t try to copy the competition, though. Do what you can to make your company better.
4. Social Media is Your Friend
Social media sites such as Facebook and Twitter are excellent platforms for marketing. First of all, it costs nothing to create profiles specifically for your online business. You can start using these immediately to focus on engaging your target market. Nearly 80% of people in the United States have a social media profile of some kind. Depending on the type of online services you offer, you have access to literally millions of potential buyers through these hubs. However, this doesn’t mean you’ll access all of these people instantly. It takes a bit of strategy and planning to get their attention when you post something new on your profile. Luckily, you have access to a myriad of excellent tools for social media marketing.
5. Know Your Skill Set
It doesn’t take much for anyone to identify a skill that can be offered online. Many freelancers make their living from providing services ranging from filing online documents to writing. If you have a marketable talent to offer, then you don’t need an investment for products. In 2015, approximately one third of the entire workforce in the US participated in freelance work of some kind. A large portion of this was due to online business operations. When you don’t need anything but your skills and an Internet connection, it’s possible to develop a degree of success. The hardest part about offering yourself in such a manner is realizing the amount of competition you’ll face.
6. Do You Really Need a Business Loan?
For a traditional startup, a business loan may be ideal to get the equipment and products needed for the company. However, not a lot of funding is required when operating an online organization. While you might need a few pieces of equipment to get started, it may take less money than you realize. If you’re looking to start an online store and need money for inventory, be smart with it. Essentially, you can run the business out of a room in your house using an old laptop. Keep your expenses as low as possible and you won’t need a hefty loan that will loom over your head for the next several years. You may be surprised with what you don’t need for the business just by using some of the things you have laying around your house.
7. Crowdfunding May Be a Source of Finances
Crowdfunding is when you post your business idea on sites like Kick starter or Indigo Go and receive donations from others. These platforms have helped a lot of people get their projects off the ground. What makes these platforms ideal is that you don’t have to worry about paying back a loan. Unfortunately, not all projects can reach their goals. For instance, only 28.7% of projects on Kick starter actually reached their monetary amounts. Since most platforms like this will deny a payment if a goal isn’t reached, you can’t assume you’ll have success raising revenue. On the upside, crowdfunding costs nothing to join and has potential to be a worthwhile venture depending on your idea.
8. You Don’t Really Need Staff
While having an extra set of hands would be beneficial in some cases, it’s not a necessity. Don’t worry about trying to pay someone to perform a task that you can do yourself. If you don’t have any money to begin with, you can’t really pay this person, right? Some owners believe they need to delegate and have a strong workforce in order to be successful. For a startup, it may be putting you on the hook for paying someone when the coffers are limited. Besides, there are many ways to outsource small tasks to other freelancers in the event you are dire for some help later on.
9. You Don’t Need a Commercial Office
One of the best things about an online business is that it doesn’t necessarily require a physical location. You don’t have to worry about rent or overhead expenses such as utility bills. In fact, some online businesses can travel with you regardless of where you go. The home based business makes up approximately 52% of all small businesses in the United States. Should these individuals decide to move to a new part of the country, it’s possible the company can move with them without a hassle. However, this will also depend on the type of online organization you develop. Something like an E Commerce store may take a bit of effort to move.
10. Maintain a Good Budget Plan
Once the money starts coming in, you need to set up a comprehensive budget plan. After all, putting money back into the business could increase your income. Focusing more on purchases that can further your business is ideal. Expanding inventory, adding services or even increasing advertising could all be beneficial. You don’t want your success to become stagnant. You don’t have to set up an extensive research and development section of your online business, though. Put a few extra dollars into something that will boost your success. According to statistics, approximately 75% of business owners stated how marketing was effective. This doesn’t mean you need to put in thousands of dollars in something like Google Adwords. However, it does show how setting up a good budget plan can help your online business grow by setting aside a few dollars for advertising.
