Starting a small business or home business without startup loans is not only possible – but extremely smart. I mean, why would anyone want to incur major debt from a mountain of BIG bank loans if they didn’t need to — or rack up high interest credit card debt as a means of cash flow management. There is a better way – and it’s called Bootstrapping.
Let’s take a look at three proven methods of bootstrap start up:
Tip #1: Start a Small Business from Home
When searching for the most profitable business opportunity without the need for start up loans, a home based business wins hands down. By choosing this option you are eliminating roughly 32% of a traditional businesses’ overhead costs.
Just consider the savings:
- No office lease payments
- No setting up services with utility companies (and no cash outlay for deposits)
- No fuels costs for commuting to work
- Decreased car insurance rates Reduction in child care expenses
According to a recent study, American companies could add more than $260 billion to their bottom line profits if their employees worked from home. There is simply no question that working from home is the smartest option for starting a business with limited resources.
Get ideas on how to start a home business.
Tip #2: Find Business Ideas Which Require Very Little Start Up Cash
Choosing the right business opportunity is the key ingredient to starting a small business without start up loans. Afterall, not all businesses can be started without bank loans. For example, is is near impossible to start a retail store without a considerable cash investment. Unless you have stockpiled a sizeable lump sum, it is very likely that you would need bank loans to be successful with a retail business.
It is, however, possible to start a janitorial business without borrowing money. Finding profitable bootstrap ideas will require some internet market research. Do your homework and be on the lookout for “too-good-to-be-true” claims of instant wealth.
Check out some low-cost business ideas.
Tip #3: Find Free Sources of Business Start Up Funding
The third and final factor for bootstrap success is saving money on initial business start up expenses and daily operating costs. Reducing these costs at the business planning stage is essential for the long term profitability and success of any newl business. What many budding entrepreneurs don’t realize is that there are many creative strategies for starting a business without a heavy debt load from start up loans or borrowing from family and friends.
You can make your dreams of small business ownership a reality. Starting a small business without bank loans requires greatly reducing business start up costs and operating expenses. Eliminate or reduce these start up costs and you’ll discover the secret to bootstrapping your business.
Read the articles
- Using Crowd Funding Sites to Raise Money for Your Small Business
- List of Crowd Funding Sites
- Where to Find Investors: Entrepreneur-Investor Matchup Sites
- Pros and Cons of Financing a Business
- How to Manage Home Business Cash Flow Effectively
- Types of Business Loans for Small Businesses
- Why You Can’t Get a Bank Loan for Your Small Business
- How to Raise Money to Start a Business (Part 2)