How to start an SME without money?

Starting a business is no big deal; any Tom, Dick and Harry can start one, that too without money in hands. But to sustain it is the most harrowing as well as the most important part.

Many businesses fail half-way through, thanks to lack of proper planning and execution. If anybody with some innovative ideas tells you that he has got everything but money to start a venture, please ask that person to read this article.

It is very clear that you need to get your facts right before you venture into something. Do your home work before you start a business. It is a must that you know who your customers are, what they need and how you differ from your competitors, etc. So, if you think you have answers to these questions, you too can start a business. That too with no money in pocket.

I had a chat with Deepak R, one of the young co-founders of Bangalore-based Innoz Technologies, which is providing a Q&A search engine that delivers information over SMS. He claims that millions of people are searching for information on SmsGYAN, which Innoz monetizes through subscription as well as targeted advertising.

Deepak and friends started their company from scratch, literally. It all happened when he was chilling out with his friends on a fine day on their college campus, when one of them caught Deepak off guard with a request to instantly give him some tips on how to fall in love with a girl. With just a low-end mobile phone (not a smartphone) in his hands, Deepak could not get him the tips. But this very thought disturbed him for some days which later led him to launch Innoz Technologies and develop their flagship product SmsGYAN.

Their hard work paid off. A few weeks ago, the company received angel investment from a well-known angel investment group, seeing its steady growth.

 

So, one important thing to be noted here is that if your product is niche, venture capitalists and angel investors will come to you to invest in your business.

Here are some tips that can help you start a venture:

Borrow money

Everybody must have heard that 'a friend in need is a friend indeed'. Borrow money from friends and explain to him/her about the potential of the product that you are going to launch. Convince him/her with the possible profits that you are going to make with your niche product. You can also borrow money from your relatives.

Rent a place

 

Have you ever heard the word 'SOHO'? It is nothing but 'small office home office'. So, do not worry about renting an office space. If you have got a separate room at your home, convert it to your office.

Search for partners

Search for a partner from your friends circle or your relatives, who are willing to invest in your business. It may ease the pressure on you. It might also help you get new ideas. Perhaps, you together can create wonders.

Share-based staff

There is no harm to employ people with share in profit. It will save you a lot of money and you will get support at no cost.

 

Create a website

Search engine giant google offers free websites to SMEs. So you don't need to shell out huge amounts on creating and designing a website. Your website can get you a lot of customers. Copy, paste the URL on your social media account and ask your friends to share it with their friends. There is a huge possibility that your potential customer make a note of it.

Stay focused

If your business does not generate profit initially (most businesses don't), focus on improving your business and find out if there's anything wrong.

Get a part-time job

 

Initially, you may face challenges in getting working capital. So, if you get a part-time job, grab it. Invest a part of your salary to your business.

Negotiate everything

Everything is negotiable. So, negotiate with banks to fund your business. There are many banks out there to lend you collateral-free loans for your startup and SMEs. Convince them about your product.