“Zero” Capital Business Start Up?

Getting up a business with low or no capital proof to be hard but it is not wholly a “Mission Impossible”. Start spinning your brain, use these little ideas to help your business, and watch your new business grows!

You have been thinking about starting your very own business one day. However, as we are well aware of, starting your business without zero capital is proof to be extremely tough. The very first obstacle is where do you find the much needed capital for setup, and stock inventory? These are just the beginning for some other consecutive barriers you'll face. Let’s explore together on few ideas that had helped me on my initial venture into business world.

1. Re-Sell Other's Services and ProductsGo out and find companies that offer complimentary services or products to your own. Work out some sort of reseller deal with them. Yes, it could be tough as you are new to them; you have no prior reputation in negotiating a deal with them. But nothing is impossible. Knock on 100 doors and you shall get 1. Start with that, and build upon it. You just take care of the customer services part. The beauty of doing this is that you can offer a great service without having to invest a large amount of capital before profits kicks-in. Your clients might not even know that it's not you providing the actual products or services at the end of the day. But do they really care? NO, they would prefer to have your excellent service even if they find out the actual provider.

2. Get Deposits To Help Cover Your Initial Expenses Crazy as it sound? But it’s true; deposits do proof to be a great way to help finance your start up business without ever needs to approach bank or finance company.

Take example for the service industry, it's a common practice to have a percentage of a job quote as deposit. Do make sure this hard earned initial deposit would be able to cover ALL of your required job costs, and it's paid well before any actual work is being carried out.

Job costs as the phrase said are costs that definitely got to be paid way before hand. For example, materials cost, and contractor engagement needed for the job. However, this might not be practical in some cases because it could be in a large portion of the entire project or purchase amount. Nevertheless, a small amount of deposit in these situations could still very well prove to be much useful.

3. Offer Installment Terms to help your Cash Flow Take yourself as example, would you appreciate some form of flexible payment terms by vendor when you couldn’t afford to put in large amount of capital needed initially? Same principal here, offering different payment methods could also help you in getting more sales as well as improving your business cashflow. But beware, its up-most important that if you do finally decided in offering such payment terms. You ought to pre-amp and setup an effective “Debt-collection” strategy to be in place. Get your bookkeeper or company secretary to handle it. They are pretty good at sending effective letters of payment demand. Just try not to be nasty. It could ruin your reputation.

To also cover the expenses incurred in debt collection, it would also prove to be useful to add extra 5% to 10% onto the initial job quote if your client requests such payment terms. This is also a commonly understood and well accepted practice; it shouldn't have hurt your sales nor your business establishment. Don’t be shy, you need to feed your stomach and your staffs cost too.

4. Hire Per-Contract EmployeeIn another word, get contractual staffs. This is another great option in ensuring that you don’t have to tie down with monthly payroll cost. It also helps to keep your employees feel motivated to perform what are expected of them and to perform them well. If they don’t perform, the job will go to others. The easiest or simplest way to this is by having some standard contract form pre-drawn before hand. You could change it as needed on different project requirements. Doing this will enable you to end the business relationship with your contractor if they are not performing up to your expectations. Protect your little baby company; you don’t want it to get blown up right?

5. Bridging Capital When you are facing extreme difficulty in securing initial capital, credit cards could also a good option to help financing a small business. Caution, you’ll have to be very cautious in ensuring that you don't end up using them for personal or unnecessary expenses.

As long as you are able to keep them in watch and paid up, you should be able to enjoy following benefits available from this options: - Enjoying up to 30 days interest free period! - The more credit cards you own, it is much easier to obtain more cards! - Get points and bonus rewarded by using credit card. Yes, the biggest problem associates with credit cards are their known high interest rate. However, if you do pay up the full amount used within specified “Interest Free” period, they're actually a much “cheaper” option than other financing options! Do your math carefully.

Getting up a business with low or no capital proof to be hard but it is not wholly a “Mission Impossible”. Start spinning your brain, use these little ideas to help your business, and watch your new business grows! Do Your Math carefully, and you could reach up there too!

Business Finance Funding Advice and Commercial Financing Help

The Working Capital Journal is one of several commercial financing resources which should be reviewed regularly by small business owners to assist in keeping up with the imposing difficulties posed by rapid changes in the business finance funding climate. As noted below, there have been some surprising actions taken by lenders as a direct result of recent financial uncertainties. The increasingly complex and confusing environment for working capital finance is likely to produce several unexpected challenges for commercial borrowers.

The working capital finance industry has primarily been operating on a regional and local basis for many years. In response to cost-cutting that has permeated many industries, there has been a consolidation that has resulted in fewer effective commercial lenders throughout the United States. Most business owners have been understandably confused about what this might mean for the future of their commercial financing efforts, especially because this has happened in a relatively short period of time.

Of course, for some time there have been ongoing complex problems for commercial borrowers to avoid when seeking commercial loans. But what has produced a new set of business finance funding problems is that we appear to be entering a period which will be characterized by even more uncertainties in the economy. Previous rules and standards for commercial financing and working capital finance are likely to increasingly change quickly, with little advance notice by business lenders.

Business owners should make an extended effort to understand what is happening and what to do about it due to this realization that substantial changes are likely throughout the United States in the near future for commercial finance funding. At the forefront of these efforts should be a review of what actions commercial lenders have already taken in recent months. The Working Capital Journal is one prominent example of a free public resource that will facilitate a better understanding of the responses by business lenders to recent economic circumstances.

By publicizing actions taken by commercial lenders, this will contribute to these two goals, both of which are likely to be helpful to typical business owners: (1) To highlight controversial bank-lender tactics with a view toward reducing or eliminating questionable lending practices. (2) To help business owners prepare for commercial finance funding changes. To assist in this effort, sources such as The Working Capital Journal are encouraging business owners to report and describe their own experiences so that they can be shared with a broader audience that might benefit from the information. Some of the most significant commercial financing changes reported so far by commercial borrowers involve working capital loans, commercial construction financing and credit card financing. A notable situation of concern is that predatory lending practices by credit card issuers have been reported by many business owners. Some specific businesses such as restaurants are having an especially difficult time in surviving recently because they have been excluded from obtaining any new business financing by many banks.

One of the few recent bright spots in business finance funding, as noted in The Working Capital Journal, has been the continuing ability of business owners to obtain working capital quickly by business cash advance programs. For most businesses accepting credit cards, this commercial financing approach should be actively considered. Business cash advances are literally saving the day for many small business owners because most banks appear to be doing a terrible job of providing commercial loans and other working capital finance help in the midst of recent financial and economic uncertainties. For example, as noted above, restaurants are virtually unable to currently obtain commercial finance funding from most banks. Fortunately, restaurants accepting credit cards are in a good position to obtain needed cash from credit card receivables financing and merchant cash advances