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How to Start a Business with No Money
Starting a new business requires a certain amount of capital. The amount of investment required to start a business would differ based on the business model and the business plan. However, the investment in the business has nothing to do with the success of the business or potential size of the business. For instance, In started in 1981 with an investment of $250 (Rs.15000) is now an $8.64 billion (Rs.54000 crores) global company. Therefore, if you are an entrepreneur with a limited budget, you can follow the following steps to start a business.
LLP Registration with EMI Option
The first step in starting any business is to incorporate a new business entity. Incorporation of a business entity would facilitate the opening of bank account for the business, obtaining tax registrations and invoicing clients. L LP (Limited Liability Partnership) registration is the low-cost business registration at just Rs.8000.
Sell on E-commerce Portals
Once the business is registered, becoming a seller on Flip kart or Snap deal is easy. The articles on “How to become a seller on Flip kart” and “How to become a seller on Snap deal” provide detailed information for becoming a seller on an established eCommerce platform. Becoming a seller on an established eCommerce portal like Flip kart or Snap deal or Amazon provides easy access to potential customers. Further, as aspects relating to marketing, technology and logistics are taken care of by the eCommerce platform, you can easily start generating revenue.
The story of a young entrepreneur is a good example of a success story built on eCommerce portals:
Start providing Services
Starting a business that provides services oftentimes requires very little investment and can be scaled up easily. Businesses such as Digital Marketing Agency, Medical Transcription, Web Development, Tutoring, etc., require very little investment or infrastructure to start. Here are also some great Home Based Business Ideas. Further, the Government of India provides an exemption on Service Tax applicability until a business reaches an annual turnover of Rs.10. Therefore, small businesses that provide services do not have to collect service tax from customers, giving an edge over established businesses. You can also find numerous clients for starting a service business on platforms like E-lance and Freelancer.
Compile a Great Business Plan
If you have a great business idea but no funds to execute, then preparing a business plan would be the way to start. Today more than ever money is not required to start a business with plenty of private equity firms and angel investors looking to fund the next big idea. Therefore, it is important to prepare a good business plan and a pitch presentation to showcase the idea to friends, family and investors. Also, forums such as Tie Con, C II, F C CI, etc., conduct regular pitch presentations wherein you can easily reach out to prospective investors. So make business plan and get ready to pitch – if you want to start a business with no money.
Government Schemes
The Central Government and State Governments have a number of schemes to promote first-generation entrepreneurs. These schemes provide seed funding for the Entrepreneur to start a business along with the required bank loan. Some of the schemes that provide such funding are NEEDS Scheme in Tamil Nadu, Self-Employment and Talent Utilisation (SE TU) Program (announced in 2015 Budget), etc., Entrepreneurs with limited funds can also contact the nearest MS ME Office to enquire about seed funding schemes from the government to find ideas for starting a new business with no money.