PPMP EP 18: You Don't Need Capital to Start a Business

Peak Performance & Marketing Podcast

Ask any wannabe entrepreneur why they’re not in business and the answer will be “lack of capital”.

Lack of capital has often been cited as the key challenge and reason by many potential entrepreneurs as the reason they have not started their business. Although this may be a genuinely honest reason for some type of businesses, lack of capital should not be the challenge for other type of business ideas. Especially those that are service based.

Service based businesses models such as Agencies, Consultancies and the likes have minimal set up cost. Therefore if you find yourself citing lack of capital as the reason why you haven’t started your Digital Agency or Real Estate Consultancy, then you’re using this excuse as a lame reason not to start.

I have used this excuse several times as the reason I haven’t started my Consulting Company when I know damn well that I do not need a huge capital infusion to get my consulting company off the ground.

How Service Business Models Work

Conceptualise the business idea

I advise that you go with the 1-page business plan from the $100 startup written by Chris Guillebeau. This is helpful so that you don’t get bogged down with writing a detailed business plan that overwhelms you and not make you take action.

Seek Out Client

Seek out clients by talking to friends, acquaintances, office colleagues etc. and run your business offers by them. In my case I talk to people close to me about the services I can offer them and listen to directions on what they actually need. Then I build services to suit that need.

I was always willing to help colleagues and friends with their digital and business strategy, business development etc. Some friends wanted me to help them raise investment for their business and raise funds for the non-profit causes which presented anopportunity to build skills in creating proposals for fundraising which became another source of income for me.

Building a business has become flexible due to the tools and opportunities we have at our disposal. Take advantage of them.

Music Courtesy: Squares