How to Start Your Own Business Without Money

Creating and sustaining your own business isn't just a way to wealth - it's a way to pursue your life's dreams and find personal fulfillment. This path isn't an easy one, but it's one that all of history's greatest entrepreneurs have had to follow.

Getting Started:

Keep your current job. By retaining a reliable source of income, you save yourself from the worry of not knowing how you'll pay your mortgage and from dealing with mountains of potential debt. However, you will have to work harder. Ideally, when your new business begins to pick up steam, you can gradually make the transition from a full time employee at your old job to a consultant or part-time worker. Eventually, you can transfer to your own business full-time.

Design a business plan. How will you make money? If you can't answer this question, you shouldn't start your own business. The purpose of any for-profit institution is to make money - have a detailed plan for how to do this before you embark on your business venture.

Do a competitive analysis. Who are your competitors? What do they charge for the product or service you're offering? Can you realistically provide this product or service at a higher level of quality or for a lower cost? If so, congratulations - you may be on to something! Research the market you're attempting to break into, as well as businesses that have (and haven't) found success in this market.

Research and test your ideas. Preparation and planning is vital before setting out on any business venture. If you can, look for opportunities to perform "test runs." For instance, if you're thinking of opening a restaurant, first try cooking for a church or school fundraiser to see if you can handle the hectic atmosphere of a busy kitchen and to judge whether your food is well-received.

Find opportunities to build skills cheaply. If you have an idea for a business but you lack the skills or training to pursue it, get the training you need for as cheap as possible. Try to make deals with training institutions or companies to have train you in exchange for services rendered.

Make the most of your existing assets. When you're starting a new business from nothing, you should use the resources you already have at your disposal as much as you can.

Streamline your staffing plans. It's expensive to pay your staff, especially if you want to hire well-trained professionals. Initially, keep your staff as small as possible to minimize expenditures. The U.S. Small Business Administration (SBA) recommends spending no more than about 50% of your profits on employee wages.

Ask friends and/or family for a loan. When attempting to build a business from scratch, your creativity and hard work can take the place of a substantial amount of money. However, you may reach a point where you simply can't proceed without a little money.

Secure an official small business loan. Many governments offer loan programs specifically designed to get small businesses off the ground.

Get the word out. The best-run business in the world will fail, if no body knows it exists. Here's your chance to make up for a lack of capital with your own hard work - if you can't afford to run TV adds or rent billboard space, try printing off flyers at home and handing them out on weekends. Go door-to-door advertising your business in the neighborhood. Make your own banner to hang from the front of your business.