Starting a micro business doesn’t mean going into debt to do so. Last week I wrote a blog post on the problems with debt when starting a micro business. This week I wanted to show you some of the best ways you can raise or earn money toward starting your own micro business.
Starting a Micro Business Without Debt
Let’s look at 5 tried and true ways you can start a micro business without debt. Any or all of these ideas can help you generate your start-up cash. Just remember to keep your micro business manageable and as debt free as possible.
#1 Save the Money First
While many small business owners think that they need a loan to start a business, most micros don’t need one! In fact, why would you even want a loan if you don’t need it? A loan puts a drain on your profits!
Rather than getting a loan, consider saving some money first. Think of it as paying yourself first. If you could pay back a loan, you should be able to save up some money beforehand. Saving up the cash first is better than going into debt.
#2 Start as a Hobby
Have you ever thought about starting your micro business as a hobby? This means you aren’t starting it with the goal of making a profit, rather to break even. This teaches you a lot about marketing, pricing, expenses, etc. But you don’t have to worry about making the profit from your work. Instead you’re aiming to learn a lot.
#3 Find an Investor, But Not a Partner
Investors are willing to make a loan to a new business and may not expect to be repaid for a long period, if ever. Investors could be your parents, grandparents or a business mentor.
The reason I’m against partnerships, especially with friends, is because a partnership is like marriage but without being in love. You are legally responsible for everything good or bad that your partner does to the business. Remember that even a verbal agreement is considered a partnership in the court room. Be careful and consult an attorney before ever striking a partnership with anyone.
#4 Sell something to raise cash
Items that you no longer use such as: electronics, a musical instrument, or collectables could be sold at a garage sale, on Craigslist, or eBay. This money could be used toward launching your micro business.
#5 Work a temporary job
Sometimes raising money toward starting a micro business means working for someone else initially. Work retail over Christmas or deliver pizzas for a few months to earn some cash.
Not only will this job help raise money for your micro business, it will also teach you time management skills. These are important skills to know when starting your own business.
What Else Do I Need Besides Money When Starting a Micro Business?
Starting a micro business requires way more than just start-up funds. You need a good idea, a solid business plan, and most likely a business mentor. In fact my book, Starting a Micro Business, covers all these topics and much more! I encourage you to check out the book today. It’s available on Amazon in paperback or Kindle edition as well as on my website.
P.S. The Kindle edition is only $4.95 and can be shared with your family on different Kindles, iPads, iPhones, or other tablet devices! Perfect for homeschooling families on a budget.