Best low cost business to start

Starting your own business without money in five steps

November 28, 2020 by Juul Dijkhuis

Starting your own business can get bogged down in not having the capital to start the business. We show you that in five steps you can still make your entrepreneurial dream come true. Starting your own business without money is in fact quite possible.

For starting your own business you do not have to take out a (business) loan with which you can buy a building. With the right approach and with the right principles you can soon start without money. Try to keep the costs as low as possible.

Starting your own business without money?

You can keep the costs down and use your business to build up capital with which you can continue to grow the business. With our step-by-step plan, we will show you in a few steps how to start your own business for which you will borrow the money or even not need to borrow it.

Step 1 – Investigate the possibilities and discover the opportunities

Starting your own business without money is not always feasible. So don’t go straight to the Chamber of Commerce, but start with proper research. Are customers waiting for your company? You can hire a research company for this, but you can also do your own research.

Put yourself in the shoes of your own customers and what they want. Ask competitors what their products or services cost. Can you do it for this amount or even less? Stay especially honest with yourself. Look critically at the costs and estimate whether you can earn this investment back within a few months. Starting a business without money can work, but if the chances of success are small, you can better spend the money differently.

Also use friends and family for this. Would they buy your products or services if you were a stranger? Be sure to present your financial plans to them as well. They can with their honesty protect you from a misstep or just strengthen you in achieving your goals.

Do you already have a business, but want to go to the next level with financed capital? Then it might be interesting to look into factoring. Applying for a business credit card can also be an interesting option.

Step 2 – Determine your minimum capital requirements

Make a financial plan for yourself in which you explain the necessary costs and set the goals for the coming years. Estimate the costs of setting up a business and keep in mind that you need to build up a turnover slowly.

So you don’t just need money for startup costs. You also need to have enough money behind you for the first few months after starting up to build your business and a customer base.

In the first six months after starting your business you need to recoup the costs. If it’s going to take longer, you need to cut costs even more or see opportunities to convert more.

How can you work on your own business for free?

If you think that setting up a business without or with little money will not work for you, you can look for free ways to boost things. For example, you can do this by:

Consider whether you can do without a website. For example, first ensure growth through Bol.com or make use of Instagram and Facebook;

Create your own house style via Canva, for example. It is relatively easy to create your own style;

Make use of barter. Do have a website built and trade it with your products or services;

 Cut your own expenses substantially so you can get by with as little income as possible after starting your business.

Step 3 – Starting your business with borrowed money?

With this step we can help you. By comparing different lenders, you’ll arrive at the lender who charges you the lowest interest rate, and who also has favorable terms.

There are also other ways to finance the costs incurred in starting your business:

Ask if friends and family are interested in lending (or giving) you money for the costs of setting up your business. This way you can at least see how enthusiastic they really are about your plans;

Can you borrow more cheaply through a crowdfunding platform? Check it out;

Are you entitled to a subsidy from the government? Check the website of RVO;

Go for a small loan. This increases your chances of getting a loan;

Choose a lender not for the familiar name. Online lenders are often cheaper and also have less stringent requirements for a loan.

Step 4 – Go register with the Chamber of Commerce (CoC).

On the website of the Chamber of Commerce you can immediately start registering using your DigiD. But you can also first make an appointment for a consultation. Many people do not know that the Chamber of Commerce can also help you with entrepreneurial questions.

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