Are you wondering how to start a business yet you do not have the required capital? Do you want to be an entrepreneur but lack a starting point? Many who were like you started somewhere, and now they are business moguls who have suppressed the market internationally. You too will definitely make it in your business without the trouble of a bank loan. How practical is that you may ask? It is possible! Let us look into a few things that will help you start up your business without the headache of a bank loan.
- Get help from family and friends
You may see this as an ancient way of reasoning but the truth is that almost all the entrepreneurs who did not access a bank loan for one reason or another, started here. Family members are the ideal starting point. There is a reason for this: they can trust you with the little they have knowing that you won’t let them down once you start flourishing.
- Win a business plan competition
To start up a business, it is normal and professional so to say to write a business plan. A business plan is a laid-down proposal or procedure that entails how your business will look like, run, and get returns. In many countries around the world, entrepreneurs are asked by the government to come up with such blueprints. At times, they give grants to the best business plan. Seize this opportunity and get your capital.
- Sell to invest
This too might sound ridiculous. Selling what you currently don’t use in order to get capital to start your business is an ingenious idea. This way, you will raise money to not only start your intended business but also to replace the things you just sold with new and improved ones. Currently, many online platforms place used and unused items to those who need them. OLX, Uzanunuagari, and Sokohuru are among the notable platforms around.
- Monetize every step
Making a landing mark in business is one thing and sustaining the business is another. Since getting a bank loan is getting harder as it dawns especially with the current lending rates, (though at 14.5% is fair), be wise on how you grow. Let the early stage in your business help you grow by adding up stock rather than relaxing and enjoying the little profit. It is too early. Depending on the business, sell services and products as you move up such as eBooks for those who are online, and networking. You can also offer many services at a fee.
Perhaps what most people do is crowd funding. This is the practice where a good number of people with the same interest of starting a business without a bank loan; form a group to support each other. Once they are together, they collect money and give each other in turns to establish their small business from the first person to the last. In doing this, they would have started their respective projects at the end of the day without the headache of a bank loan. Albeit, you need to know who you are dealing with lest you will lose your meager savings. Yes, there are many other known techniques people employ in starting up their businesses without necessarily going for a bank loan, but these are the most commonly applied. Try any of these and you will be assured of not being caught up with a bank debt.