Starting A Business With No Money
Have you developed a business idea but have no money to get it going?
Don’t worry. You can start a business with no money. Are you eager to find out how? Then read on.
Get a funding loan.
First, you need to find a funding source. It can be a bank or any small business loan administration (SBA). But since no bank is willing to lose money, most of them will refuse to give you a loan especially if you are a start-up. Anyway, don’t give up and don’t say “no” to your idea. You can persuade a bank or any other small business loan administration to give a business loan if you have a strict and clear business concept.
First of all, provide them with all the necessary documentation: credit report (credit history), business plan and resume with a detailed personal background.
Credit report–You need to provide a credit report to show that you are a responsible borrower and you have never had problems with repayments. The report also includes information about your late payments and bankruptcy (if there was any). If you have no credit report, you need to fill out an application which will be given by a bank or any other lender. Then your application will be sent to a credit bureau and the last ones will check the veracity of the information you wrote. So you need to give accurate information.
Your application should provide the lender with accurate information about you. It’s very important for a lender to know about your education, previous job and also whether you had problems with the law.
Business plan–A lender will ask you questions like how much money you need, how are you going to spend it, what assets (inventory, equipment) are you going to purchase, whether you have other business debts or not, and if you do, who are your creditors and so on. He may also ask you about your teamwork skills. Productive teamwork is a key to success. So you need to be extremely well-prepared with answers.
Most lenders will ask you about financial projected statements. You may either include it in your business plan or prepare it separately. It should include the following points:
- Balance sheet
- Income statement
- Cash flow
If you have a ready-to- market product, demonstrate it. They need to know what product they’re paying for.
And certainly you need to prepare all your legal documents, like registrations and licenses.
If after your best tries nothing works out , don’t despair. Look for government programs that give a funding loan. Just never give up, and with the right strategy you will finally start your business!
Photo © grantthai
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