Launch Your New Business Without Money
Is it possible to start a new business without any money? Yes, although your definition of starting a business will be different from how your state defines a business. You can begin operating your enterprise without formally launching your business, putting off registering with the state, at least initially. Read on for some tips on how to make this a reality.
1. Determine your business model. What sort of business are you looking to run? If it is a retail operation, then you’ll have register it with the state to collect sales tax. You may also need to register with your community to obtain a business license.
If you’re planning to start a work at home venture such as a freelance writing or editing service, then you can take on customers without registering as a business. At least initially.
2. Establish a business plan. You’ll need to have a business plan in place for two reasons: to set rates and to qualify for credit including loans later on. A business plan may also be required by your state when you file your letters of incorporation.
Your business plan will include an executive summary and will offer a description of your business, marketing and competition details, your operating procedures and more. Check out the Small Business Administration website for more information.
3. Learn your state’s requirements. You may be able to start your business as a sole proprietorship and shift to an LLC or a C Corp later on. Some states permit sole proprietors to launch without registering or paying a fee, but that may not absolve you from paying taxes or fees according to Nolo.
Contact your secretary of state office to see what requirements apply to you. Explain your business arrangement and the path you want to take to organization.
4. Promote your business. By word of mouth you can tell everyone about your business. You can also use free sites such as Craigslist to solicit business. Set up a Facebook page to establish a web presence.
Attend local business group meetings, establish a free website through WordPress.com or Blogspot.com and set up social media accounts on Twitter and LinkedIn.
Each of the steps mentioned do not involve money. The assumption here, however, is that you already own a computer, a printer and have an Internet connection. Once you get customers and begin making money, you can buy business cards, advertise your business, and formally register your business with the state. Perform a business health checkup to gauge the strength of your operation.