The lack of personal capital is not a reason for you to let go of your dream to launch and grow your own enterprise. A business is possible despite limited funding as long as you know what you are doing.
Money is essential in building your business because of the following: licenses and permits, suppliers, equipment, office space, association, subscriptions and memberships, operating expenses, legal fees and employees and contractors.
Given the importance of money, there are three options you can consider in order to begin your business.
1. Reduce your needs. In this option, you will adjust your business model in order to lessen the needs as listed above. You can do this by running the business on your own (initially) at home. This way you reduce employee expenses and office space fee. Another way is to do a thorough research to find cheaper suppliers. The rest of the expenses are unavoidable though like licensing and legal fees.
2. Bootstrap. This is like your business’ adjustment period. Instead of going full-pledged with your business, just start with the basics first. You can do this by launching a blog and one niche service, reducing your scope, audience and profit to give you a head start. You can also start as a self-employed individual for a simpler tax situation. Once you see revenues coming in, you can build your business piece by piece the way you imagined it to be.
3. Outsource. You can raise your capital through an outside source. Here are some potential sources you can consider: friends and family, venture capitalists, angel investors, crowd funding and loans from the government or banks.
Choosing one of these options or combining them will help you reduce your personal financial investment into your startup. Of course expect to make small sacrifices if you want your business to thrive. But never let the challenge of capital be a hindrance because it can be conquered.