Starting a business, with no money is a question I often hear. Many people who are facing difficulties see it as a solution. However it's important to consider the drawbacks and challenges that come with such a situation.
Personally I believe that starting a business when you have no funds is not ideal due to the desperation it can bring. Desperation often arises from reasons for lacking resources, such as limited skills, experience, knowledge or even the wrong mindset. It reveals aspects of who you are as an individual.
Therefore I advise against starting a business for the purpose of making money if you are currently struggling financially. Please note that this perspective contradicts what many gurus or experts in entrepreneurship advocate, for. However as someone who supports entrepreneurship myself I believe it is essential to prioritize stability before venturing into business endeavors.
Get a Job.
Get yourself employed, take care of your expenses and ensure you have an income. It doesn't matter if it's a part time or full time job; what matters is that you start earning some money right? Once you finish work in the evening, after 5 o'clock that's when you can focus on your business. You know, what the younger generation refers to as a "side hustle." That's absolutely fine. There are opportunities, with technology and computers nowadays.
However don't jump into starting a business with no money. Assume it will thrive miraculously. Seriously if you can't even secure a job now why would you think being successful in business is any easier? Take a moment to reflect on that; it sounds rather foolish. Hey if you're skilled, at what you do and genuinely add value to the market then sure! Once you have some stability and bills are taken care of then consider exploring what kind of business venture appeals to you.
But let me tell you something; I believe that not everyone is cut out for starting their business or becoming an entrepreneur. It's not a path that suits everyone. This belief of mine stems from the fact that nowadays the media, including platforms, like YouTube and social media heavily promote the idea of entrepreneurship. Being your boss and starting your business to live a certain kind of life.
Well if you actually speak to individuals who have embarked on ventures, the majority of them face failure. Statistics indicate that 90% or 95% of small businesses fail within the first five years. The actual percentage doesn't matter much; it's just alarmingly high. So knowing this when you take a leap into something it's, like accepting the fact that there is a chance of failure. 9 out of 10 times to be precise. Even if you do manage to succeed the likelihood is that you'll barely scrape by and face challenges without thriving. However here lies the issue; those few who make it big are often celebrated and showcased on magazine covers. We read about how they made amounts of money or achieved success. Yet what we don't see are the thousands who didn't make it because their stories don't sell in magazines. You won't come across headlines, like "An entrepreneur who lost all his savings and had to mortgage his house resulting in a $200,000 loss." Those stories rarely receive attention.
If you actually have conversations, with entrepreneurs you'll hear many of these stories. I've started businesses. Faced failure in many of them. I've had years filled with mistakes and setbacks. So entrepreneurship isn't meant for everyone. It truly isn't, for everyone.
You Don't Necessarily Have to be an Entrepreneur to Make a Lot of Money.
I've learned a lot over the years. Having skills that can generate an income can lead to success. It allows you to earn an amount of money. If you invest it wisely you can also enjoy a life. Being an entrepreneur requires leadership and various skill sets. It's similar, to how not everyone can become a swimmer. Anyone could be a marathon runner. Not everyone has what it takes to be a world class basketball player; it's just not suitable for everyone. However when it comes to business many people tend to be overly optimistic. They believe they can easily start and succeed in their business within three months or break in the first month. Some even think they will make millions within a year, quite incredible isn't it? Nobody starts a business with the mindset of failure or expecting not to make it profitable, within three months or six months.
What happens if it doesn't generate any profit within a year? What, about after five years? What options do you have then? How would you handle the situation? Now consider the impact, on yourself your family and those who care for you... It's likely that you may have already relied on them for support to begin with. So what steps would you take next? You would end up placing them in a predicament.
Worries to Think When Starting a Business
When starting a business it's important to come from a place of stability and financial security with some income and savings set. It's also beneficial to have skills and support including guidance, from a mentor. Additionally having an edge in the industry you're entering is advantageous. That being overly optimistic it's crucial to assess the risks and uncertainties. Consider what could go wrong and what you may not. Assumptions you might be making. How can you ensure your plan will work? What if things don't go as expected or take longer than anticipated? To focus on winning it's essential to prepare for possible failures and setbacks. By addressing these concerns upfront you increase your chances of success. Be prepared, for any challenges that may arise and be adaptable when things don't go according to plan.
You may have a solution and a plan, for all of those situations. It's likely that you've carefully thought things through and believe that this approach would be effective. However I must admit that the answer I'm about to give you may not be as exciting as you'd hoped. I know you're seeking guidance and encouragement. Simply saying "go for it" or "become an entrepreneur" is empty advice. It's not the guaranteed path, to success that people often make it out to be. I would advise you to reconsider before starting a business. Ensure that it's something you genuinely desire and prepare yourself mentally and financially before diving in. The journey won't be easy. The challenges you anticipate may be even greater than you initially thought. Moreover these difficulties are likely to persist for a duration, than being short lived.
Let me share an anecdote before we conclude this blog post. Years ago I had the opportunity to have lunch, with my mentor. During our discussion my mentor posed a thought provoking question to me; "Ukeme what do you believe is the quality for an entrepreneur?" Being relatively inexperienced at the time I naively suggested that having vision might be crucial. However my mentor quickly responded with a "no." I then proposed that leadership and the ability to build a team could be traits. Again he shook his head. Said "No." As I continued brainstorming I mentioned persistence as a quality, an entrepreneur must never give up. Again my mentor. Replied with another "no." Finally I suggested that capital and financial resources must be necessary, for starting a business. Again my mentor simply said "no." I kept going, never stopping. He mentioned, "You know what? All of those qualities are important. However they're not the traits, of a successful entrepreneur." He shared something that stuck with me.
According to him the key characteristic of an entrepreneur is their ability to persist through pain over a period of time. The capacity to endure pain for a prolonged duration. Then when I was much younger and lacked understanding it didn't fully resonate with me. Now as I've matured and reflect on where I stand today it actually holds true in ways. The ability to withstand pain for a length of time. When everything else seems to be working against you, when the market is unforgiving and even your own family doubts you—when the world perceives your chances as slim to none—during those days when your businesss on the brink of closure and you're just days away, from losing everything—when you feel completely alone without anyone who truly comprehends or can offer assistance—not even your spouse understands you in those moments—can you persevere? Sure you can definitely do that repeatedly. It's actually one of the qualities of being an entrepreneur. So that's my answer. How can you begin a business without any money? I may have gone off on a bit of a tangent. I believe there are crucial points I've shared with you. If you have any questions feel free to comment below.
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