It is all too often that great business ideas never come to fruition because there are financial constraints and lack of capital investment. However, in today’s globalized world where technological advancements hav
e blurred geographical boundaries and opened up a plethora of opportunities that did not exist previously, entrepreneurs too have the advantage of realizing their dreams even without money to invest. The lack or absence of monetary funds should not be a hindrance or deterrence for any entrepreneur. The following tips can help budding entrepreneurs to realize their dreams even while lacking the required funds:
- Focus on developing an alternative revenue stream to fund your dream project: If one does not have the capital to start their dream project, one can always pivot and make use of services to generate cash flow to fund a product-based business. There are many times that aspiring entrepreneurs seeking to develop a proto-type throw in the towel early on because they are unable to generate funds to develop that particular product. The best approach in this case is to fund their dream project by starting a service based business whereby one provides services and collects funds. This way, one generates income that can be invested in the business project one really wants to pursue.
- Spread the word: Tell as many people as you can about your business ideas including your family, friends, colleagues and business contacts. The more buzz you generate about your idea, the more likelihood of it eventually securing an investor. Word of mouth is considered one of the most effective marketing tools, so employ that to your advantage.
- Social Media: Social media has single handedly revolutionized the way humans go about their daily lives. Our increased inter connectivity on a global scale is primarily attributed to social media. Entrepreneurs can make use of social media to cost effectively market and advertise their business ideas. Not only does it serve as an effective marketing tool but can attract investors. There are numerous funding campaigns online for budding entrepreneurs as well.
- Get Creative about Funding Options: Do not stick to the traditional means of funding but look for all avenues. There are government grants and loans other than the conventional bank loans. Reach out to relevant institutional bodies’ salient to your business idea for seed funding. Try crowdfunding and angel investors within your social circle and otherwise.
- Steer Clear of Credit Card Debt: While credit cards are always an enticing option but it’s a slippery slope and hence one needs to be supremely conscientious when dealing with credit cards. The goal is to ensure that one does not get buried into debt as nothing would be more detrimental than that to the business idea.
- Bootstrap: Instead of directly trying to establish a full-fledged business, take it slow and start only with the fundamentals. Slash the costs as much as you can and start with the basics. Start as a self-employed individual taking on all responsibilities, cutting down the cost of hiring people. Or one can engage ones family members to help out voluntarily. This way the cost of human resource is slashed. Gradually, the business can be expanded and built into the business one had imagined.