#AskPS
Bhavik Jain .

How to start a company with little or no money?🙁🙁

Starting a business without initial capital could be a tedious task!!!😟😟

In my view, there are three things that are needed to start a business:

  • Money
  • Customers
  • Product/Service

SINCE WE ARE DOING THIS WITHOUT MONEY, WE ARE LEFT WITH JUST CUSTOMERS AND PRODUCTS.

What would be the best way to proceed in this situation? How to hustle in this situation?🤔🤔

Originally Posted Here
29 Comments

Geet Kiran Aneja

maybe productize your marketable skill initially and sell it to a ton of customers. Money raised! now do what you want with it.:)

Bhavik Jain 

Didn't get you, can you elaborate?

Sooraj Kumar R

offer services. Think freelancing.

Bhavik Jain

So you are saying, I should juggle between giving away my skills as a freelancer and the company?

Sooraj Kumar R

not giving away. Getting paid for it to build the capital to start a company.

Bhavik Jain

Oh yes i mean the same, so i should start using my skill and do freelance job while i am also running the business

Abhishek Avikk Gupta

Social Media will always be the best way to grab your early list of customers when you don't have heavy budgets to start your business.

Bhavik Jain 

Through ads?

Abhishek Avikk Gupta

priority for setting up a profile , create relevant content , then go for ads.
&
CONSISTENCY MATTERS THE MOST

Many local businesses started doing it already and getting good results.

Bhavik Jain 

As I mentioned I have cash which is nearby to Zero, then how will I pay for the ads?

Abhishek Avikk Gupta

as I told ,we need to look for content creation part first through which we can expect some organic traffic and can convert it into some revenue by putting different online initiatives .

E.g starting a specific fb community might help and engage people inside that community can help all of us even more.

Bhavik Jain 

a community will be a tough job. Can somebody start with running a page?

Abhishek Avikk Gupta

both ways will do fine. Strategy can be different depends on what kind of content we have in bucket.

Bhavik Jain 

Yeah that can be done to attract the people towards the page but then we need to use the same content to convert these people in to leads?

Abhishek Avikk Gupta

if the CONTENT is engaging & they Love Sharing it ,They Can be your Top INFLUENCERS & who knows you end up attracting more people & have more leads.

Deepanjan Datta

IT depends on the product you are developing. If its a hardware product, you require initial capital and you can manage it either from your savings or, from your parents. If its a software based product, you might not require initial money; you get customers and traction without any initial funding (may be). In my view there are five things that are needed to start your business:
1. Money
2. Evaluation
3. Product
4. Accuracy
5. Traction

Bhavik Jain

Can you share some information on all the points except money?

Deepanjan Datta

Although I got my first funding (although very small) just based on my idea and evaluation of my idea, in general, you need to have the following points:

1. Evaluation of idea: for e.g. you are making a medical device, say a wearable ECG device. So, you need to talk to the many cardiologists about your thoughts, what they think about your design and product; who are your target customers etc etc.and see if they are fine with having such a device.
2. Develop the product: both electronics hardware, wireless communication system (if needed), Mechanicals, software dashboards, App etc etc.
3. Have an accuracy test w.r.t a gold standard device. You need to buy it, or, manage it from some labs etc etc. try to increase the accuracy of your product. Accuracy matters a lot, at least to me. A minimum 99% accuracy you should have w.r.t. gold standard device if you are into hardware products. if not, brainstorm and try to have an accuracy of 99%.
4. Now go back to the clinicians and test your alpha / beta proto. You could get at least 40-50 patients if you visit 5-10 clinicians; you test your device or, software on them, collect your data, have a real time comparison and show your result to an investor; get funding.

Bhavik Jain 

Looks good for a physical product but does this works for a service company?

Agni Chatterjee

if you have no capital get a job, save money , raise capital or take loan. You will need money for the business.it is exciting to read about businesses which hussled their way to sucess but they are more of a statistical aberarration than a norm, considering the fact that even funded companies fail left and right , going without capital is putting the odds against yourself

Bhavik Jain

It is always hard or near to impossible for a person to get a business loan without showing any capabilities of paying it back on time.

Agni Chatterjee 

Raise some money from family and friends to build the MVP and see if it sells . Also if there is profit in the initial sales you can use it for scaling , if it is a profitable business all investors will invest heck even I would fund it

Bhavik Jain

Yes that can be done

Paras Shah

For a sustainable business you need paying customers. If the product or service is valuable for any person then they will pay for it. One of the best ways is to create a prototype and get pre orders for your product. If you are getting pre orders you definitely have a viable offering. In US a lot of startups first go through crowdfunding routes where they showcase the product via a video, raise the goal and ship the product. That validates your product and gives you a customer base.

Bhavik Jain

What about a company selling service?

Paras Shah

If you are selling a service as well create a communication with the unique features and value to the customers. Also create a standard demo. That will explain your offering. Early adopters will pay. Also if its a SaaS then use freemium models or 1 week trials.

Bhavik Jain

Noted and thank you

Mittal Patel

Scaling product based companies without funds could be difficult but for IT related services it can be done with little or no money. It all depends upon the skill of the entrepreneur in the beginning. One should have a skill which he can sell and accumulate funds to grow team.

I have started 2 companies with very little money and both scaled very well. In first company we were providing web development services.
The second company I started in 2018, Pragnakalp Techlabs, is also going well now. Focus was on to find paid clients of Chatbot Development and I did. Initial clients gave company a kickstart and then I could grow the team to build Chatbot Development and NLP based products. We are still providing services to generate revenue company and keep the company afloat.

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