"Beware of the half truth. You may have gotten hold of the wrong half."
Usually, most successful entrepreneurs in the world effectively utilize the resources they have to launch a business. That’s because finding investors, raising funds from various channels or putting in their own money isn’t always possible.
Therefore, these time-tested and proven tips could help you start a successful home-based business with no money.
Take Inventory of Your Resources
You’ll have quite a few resources that you’re not using to the fullest. One of these is your computer and Internet connection. The other would be smartphones with mobile data and free calls/ SMS packs that are popular in India
The other, most important resource is your time and skills. Find out how much time on any specific day you can give for a home-based business. And finally, check whatever skills you have that can help in creating a successful business.
I would suggest you write these down on a computer or notepad and review them a few times. It’s very important to be realistic in every detail you’ll jot down.
Identify Nature of Business
Identifying what home-based business you wish to enter can prove a hassle. There’s nothing to worry about. There are countless home-based business ideas you can find from any superb website that deals with such topics. Read these carefully and shortlist those ideas that appeal the most.
While there are several ideas for home-based businesses, it’s best to zero down on the one that is suitable to your geographic region. Dreams of nationwide and global expansion can wait for a while, till your business gains ground.
Once you shortlist such ideas, find out which ones suit your skills and resources. This is a very important step and tip to start a home-based business with no money. Because in the absence of investment, your skills and resources will be the main drivers of your home-based business.
Study the Market & Market Conditions
Most people who launch home-based businesses miss out on this very important tip: they don’t study the market and prevailing market conditions. This is extremely important. Unless you know who’ll be your customers, the price they’re willing to pay and the existing demand for a product or supply, you’ll end up shooting in the dark without much success. This will help to start a home-based business with no money.
Also, look for seasonal demands for a product or service. That’s because every business, regardless of its nature, always witnesses ups and downs in the market for several reasons. These can include high demand during the holidays or festive season and poor demand due to climatic conditions.
Know Your Competitors
A colossal blunder that most budding entrepreneurs who start a home-based business make is not gauging the exact extent of competition. They perceive competition as something they can easily overcome and become overconfident about success. This can be fatal to your home-based business.
Remember, your competitors are in the market before you. Hence, they’ll have a bunch of loyal customers. Also, you can find something about these loyal customers such as location and the price they’re willing to pay, services or products the competitor offers and the reasons for their popularity.
When you start a home-based business with no money, these competitors will already have a head-start as they’ll be having some money to meet the same challenges that your business poses and can counter it effectively.
Avoid Copycat Ventures
Avoiding copycat ventures is yet another tip to start a home-based business with no money. And there are strong reasons as to why I’m saying this. Firstly, statistics worldwide prove that between 60 to 90 percent of enterprises flounder and fail within two to five years of their launch.
The main reason: Fewer customers due to similar stuff available from competitors resulting in lower profits that make operating your business unprofitable.
So what can you do in such cases? The answer is simple. Innovate. You can innovate on what your competitors are offering instead of outright copying their product or service offerings. When you launch an innovative business offering that is something better than what’s already available in the market, you stand better chances of success.
By following these five simple tips, you could be creating a solid foundation for a superb, profit-making home-based business. Use free online resources such as social media to promote your business. As you go along and make profits, create a corpus fund to counter any cash shortage and allot a budget to expand your home-based business.