My husband and I want to start a business, but we're broke. What can we do?

Question

My husband and I have a great idea for a business, (well actually, we have a few), but we are BROKE! We know for sure that our latest idea would be a hit, but it seems these days like you need money to make money. Our credit isn't the greatest, (we fell al little behind when I went on maternity leave and weeks later his union went on strike), so we're afraid we won't qualify for a loan. Any ideas on where to start?

Answer 1

You can start your business with no money -- but it will not be easy. But if you're willing to work hard, and be creative and willing to learn, you can surely do it.

With poor credit, getting a low-cost loan from the Small Business Administration will not be an option. In SBA's document "CREDIT FACTORS A POTENTIAL BORROWER SHOULD KNOW" http://www.sba.gov/financing/preparation/qualify.html you can qualify for an SBA loan if you have equity investment and collateral -- which both means money. SBA wants to see that you yourself is invested in your business, so they want to make sure that you have money in your business as well. Without money, then you cannot be approved.

Here are some articles that can give you ideas of what to do when you want to start a business yet you do not have capital:

Starting a Business with Little Cash? http://www.powerhomebiz.com/vol30/nocash.htm
10 Rules for Starting A Business on a Shoestring Budget http://www.powerhomebiz.com/vol70/shoestringrules.htm
No Money? No Problem! http://www.entrepreneur.com/article/0,4621,288954,00.html
Seth Godin's Bootstrapper Bible http://www.changethis.com/8.BootstrappersBible
How to Start a Business With No Money http://www.smbtrendwire.com/start-business-no-money/

I suggest you read the following books as well. Borrow them from your library or buy them from your favorite bookstore

- No Cash, No Fear: Entrepreneurial Secrets to Starting Any Business with No Money by Terry Allen
- Starting on a Shoestring: Building a Business Without a Bankroll by Arnold S. Goldstein
- The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything by Guy Kawasaki

It may help you if you could talk with a small business expert or free mentors to give you ideas on how to make your dream of starting a business come true even without money. Here are some places where you can find a mentor:

Government Mentoring Programs such as SBDCs, which works with community colleges and local business development councils to offer mentoring programs http://www.sba.gov/sbdc/sbdcnear.html ; or the Women's Network for Entrepreneurial Training http://www.sba.gov/womeninbusiness/wnet_roundtables.html
Volunteer programs such as SCORE http://www.score.org which is composed of mostly retired executives and entrepreneurs
Formal mentoring programs such as Athena Foundation http://www.athenafoundation.org/programs/globallinks.html , Helzberg Entrepreneurial Mentoring Program http://www.helzbergmentoring.org/HEMP/ , or The Aspen Institute MicroMentor Program http://www.micromentor.org
Professional organizations such as the National Women’s Business Council http://www.nwbc.gov/Mentoring/programs.html
Industry and trade associations
Local business groups, such as the chamber of commerce
Local chapters of business groups

Answer 2

To get started, I suggest contacting the Small Business Administration Financing Page (SBA) – links below. Entrepreneur also offers a great site dedicated to money & finance – see below.

Research, research, research – this cannot be stressed enough. Read as much as you can. Here are some book titles that are relevant:

* Free Money for Small Businesses and Entrepreneurs by Laurie Blum
* Finding Money: The Small Business Guide to Financing (Small Business Series) by Kate Lister, Tom Harnish
* Financing Your Business Dreams With Other People's Money: How and Where to Find Money for Start-Up and Growing Businesses by Harold R. Lacy
* No Cash No Fear: Entrepreneurial Secrets to Starting Any Business with No Money by Terry Allen
* Starting on a Shoestring: Building a Business Without a Bankroll by Arnold S. Goldstein

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 3

What I learned from my past ventures and so I recommend to those who have the entrepreneurial spirit:

1. Have the desire to mutually uplift the financial status of others by way of offering your products.

2. Offer products that you san support after-sales, besides having a high demand ratings.

3. Start the business with the lowest capital as possible but projecting high growth in the future.

4. Surround yourself with people who can help your business intellectually and morally (no, not necessarily financially).

5. If possible affiliate yourself with others who are already successful in your line of business (what I call a "cooperative competition").

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I hope you are indeed decided in having a business you can cherish... for LIFE!


Source(s):

To help you start your business, visit:
http://sbdc.deltacollege.org/startup

Or see the US-Small Business Authority:
http://www.sba.gov

And drop by Kiyosaki's site:
http://richdad.com

Answer 4

Good question... I feel for you.

First off, i'd create a business plan outlining the focus of the business, the approximate costs of start up, and the projected revenues. Then, I would contact your local SCORE office.... most states have one, they are retired executives that help give small business startups free advice.

Most people usually start off by pooling money together from friends and family. If they believe in you, they will invest in you.

Here is a good link:

http://www.score.org/

Also, try this:

http://www.sba.gov/starting_business/

That is the link to the small business administration. Give it a shot. Feel free to email me if you have any questions. I'd be happy to give any advice as ive started quite a few businesses.

Good luck...

Answer 5

A good business to enter into is cleaning. You need next to no capitol and there is good money in cleaning offices and houses which are for sale or rent. Advertise locally and ensure all the business houses in your locality are aware of the service you offer as well. Many companies go out to tender for their office cleaning to be done and pays good money if you score the right contract. Hope this helps!

Answer 6

Get out of debt before you do anything. Even if you did qualify for a loan would it be a good idea at this point? Save the business ideas for later, maybe you'll even thing of better ones, or you'll have time to plan out details and things.

Answer 7

You don't need capital. You need gumption, grit, discipline, brass balls and determination. And you definitely need to do some reading and research.

1) you obviously have internet access, read everything you can about starting a business - but please avoid the get rich quick scam artists. Check my past answers for some good sources.

2) Hit the library - ask the nice lady to point you to the small business and entrepreneurship section. Read every book there. Take notes, make plans.

Good luck!
Scott

Answer 8

I will invest US$ 5000 and stock table linens, chair covers, sashes and table napkins and will start my
SPECIAL EVENT RENTAL COMPANY

This business will pay me handsome amount of rental income again and again.

I can rent these items to wedding planners, hotels, clubs and event managers.

This is very lucrative and glamourous business.

Any body interested can contact me I have the genuine supplier,guide and mentor.
[e-mail]

Answer 9

You could get a loan if you had some kind of a collateral. do you own your home or something like that? If your credit is bad, I think that might be the only way to do it.

Answer 10

It very hard to start a business with out the capitol to back it.