Bootstrapping

Can You Set Up Your Business Without Capital?

One day set up your own company – A dream for many! Unfortunately, few do. You don’t have a specific project yet, you’ve just bought a house, you don’t know who to contact: you always have a good reason not to get started. Another reason often cited is the lack of start-up capital. What if we told you that a well-stocked bank account is not necessarily needed? Would you believe it? Probably not. Although, there are ways to accumulate money, or borrow, even if you don’t have a lot to initially invest. 

Start a business with no money

How much does it really cost to start a business? As you can imagine, starting your own business is not free. There are formalities to complete, starting with your registration and, in certain cases, the activation of your VAT number. You also need to pay quarterly social contributions and, depending on your activity, maybe get permissions. There are costs that you need to consider but they may not be upfront. Several solutions exist to ensure that starting your business costs you as little as possible. 

Start as a self-employed person on a complimentary basis

You can start as a self-employed person on a complimentary basis if you already have sufficient social security cover thanks to another status, for example that of an employee. The advantage of being self-employed on a complimentary basis is that you keep the security of your main activity. In fact, your social rights as an employee are regulated by your employer and you continue to receive your fixed monthly salary. In addition, the provisional social contributions of the self-employed on a complimentary basis are much lower than those of starters as their main occupation. 

You have certainly heard that the self-employed can deduct their business expenses well. It’s true, but don’t go crazy. Don’t choose the biggest company car or the hottest coworking office. It is very likely that you will be able to operate from your home. If you need heavy equipment, consider renting it first. You will understand: try to limit large expenses but know that you can claim back for a lot of things. 

These savings will give you a little more leeway while your business is up and running. You can always consider investing in equipment, computers, machines, vehicles… when your income is higher. Keep all supporting documents for these expenses. Business expenses reduce your taxable income, which means you have to pay less taxes and social security contributions. Please note, all costs are not deductible. You cannot therefore deduct any lunch or small gift. How do you know what expenses you can deduct? Keep these few conditions in mind: The costs must relate to your professional activity of course. They are necessary for the operation of your business. You can present supporting documents (invoices, VAT records, contracts, etc.). You pay or bear the charges in the year you want to deduct them. The self-employed on a complimentary basis can also deduct their expenses. The rules to be observed are identical. 

Money talks

Do you already know that you will need some capital before you start? Do you still prefer to have a financial reserve? Or can’t you really start your business without some major purchases or investments? Several solutions exist to boost your bank account. Some people choose to get loans. Can be a good or bad idea depending on how good you are with finances. Some people may have had issues in the past or may even be entitled to refunds. In this case you may want to look at Loans 2 go refund. 

You also always have the option of requesting a loan from the bank. In this case, make sure you are well prepared and make a detailed financial plan. Preparing this document will give you a clear picture of the financial future of your business. This is not the only interest of the financial plan. Well designed, it will help you gain the trust of your banker, who will be more inclined to support your entrepreneurial projects.

Use crowdfunding

The crowdfunding is to fund online launching your business by your prospective customers while testing your offer of products or services! By raising the necessary funds, you can start your business without money. Also, be aware that crowdfunding can occur during a growth phase: are you developing a new product? Are you taking premises to open a shop? Ask your loyal customers for a boost!

Call on love money

Do your relatives encourage you in your business project? Solicit them to finance your costs! This free financing allows you to get started without money, it remains to convince those around you. Also consider other forms of private funding – business angels, in particular. These, for sure (except sponsorship), will require a participation in the capital of your company and will require solid guarantees (you will undoubtedly have to invest your own funds in capital). But this solution allows you to start (or grow) with comfortable means, and you can completely keep control of decisions by inserting the appropriate clauses in your statutes.

Train for free

Do you lack skills? Do you want to acquire new ones? Free training is possible! In addition to online training such as webinars and tutorials, you can have free access to professional training thanks to your training account.

Choose the right tools

Choosing the right tools will also be necessary to start a business without money. Start with free tools (Excel, Word or the Google suite). You can also opt for free software, so you can find free accounting software or even free CRM software in our comparisons.

Develop your business for free

Starting without a business without money doesn’t just mean starting it. You will also need to develop it by finding your first customers, then many customers over time! To grow your business with little money, you can take advantage of “free” acquisition channels, which will only cost you time. Start with word of mouth and networking, if you already have experience on the subject. You will then need to create a professional website and start a natural referencing strategy (local or on a larger scale depending on the type of business you are starting). Bringing in business can also be a way of spending yourself without a cash advance, since you can pay business introducers only if they are successful.

Professional expenses. Expand your network

While it can sometimes be a source of jokes, networking can be really profitable. The more extensive your network, the better known you will be. And among all the people you will meet is perhaps a potential client or a valued partner. At a networking event, you are sure to meet people who are potentially interested in your services, or whose experience can inspire you. To find out, it will only cost you a little of your time and practice of your conversational skills. 

6 ideas for starting a business without money 

1. Freelance: web editor, graphic designer, web designer, developer – web professions are developing and opening up new horizons! Do you have an internet connection and a good computer (and the skills!)? You can start your business without money.
2. Personal services: hairdressing or aesthetics at home, childcare, gardening, dog sitting, coaching, no equipment required, no need for premises: you just need to use your skills and make word of mouth work.
3. Consulting: as long as you are properly trained (and experienced, for more credibility), you can become a freelance consultant without money.
4. Commercial agent: are you passionate about real estate? Practice as an apartment hunter or independent real estate agent, you can get started at no cost!
5. Intellectual activity: apart from your gray matter (and the diploma!), Little investment to plan to start as a psychologist or hypnotherapist, for example, if you take advantage of digital platforms to offer your services remotely – or if you set up your practice at home!
6. Crafts and DIY: painting, odd jobs, repairs etc. Are you good with your hands? You can start your business without money.

Make a business plan

Your business plan is the backbone of your project: this document allows you to structure your project, and serves as a reference from the creation to the development of your activity. You do a market study to study the competition (and the best business opportunities), you assess the risks, and you make a forecast budget. The opportunity to specify the expenses to be expected, and to avoid unpleasant surprises! Your business plan is also a useful medium to present to investors and banks: you are ready to request external financing, to create your business without personal funds (or with a minimum investment). 

So there you have it. Some tips and advice on how to get going with your business. No, it won’t be easy and the road is likely to be bumpy, but also, you will find that you have plenty of things to discuss and you’ll most definitely have the recipe for success in your hands.