Hello Finance Manager! I’m trying to start a business and I don’t have any capital. Help!

Hello Finance Manager! I’m trying to start a business and I don’t have any capital. Help!

Hello Finance Manager! I have a great business idea. I even have a few companies in my area that told me to let them know when I was in business because they want to use my services. I understand sales and I’m good at it. My problem? I don’t have any capital to start a business! What can I do?

Many thanks,

Distressed in Denver

Hi Denver,

Starting a new business can be very exciting and very scary. It sounds to us like you obviously have a firm idea in mind since you already have potential clients in your pipeline. We’d like to congratulate you on that!

Any business needs at least a little bit of capital to get off the ground. So, let’s look at some options.

Minimize Startup Costs

You didn’t tell us exactly what services you’ll be offering, but the first thing you can do is take a long, hard look at your business and determine where you can slash your startup costs.

  • Do you have to start it in an office space or can you run it part time (or full time) from your home? Keep in mind that you may need to look at your city’s laws to determine this answer. Some cities will have laws against certain types of businesses being operated from a residence. You can talk to an attorney or even call your Chamber of Commerce. They can point you in the right direction.
  • Do you need a brand new computer or will the one you own suffice? One way to help minimize startup costs is to use what you already have if it will work for that purpose. If, for instance, you are starting a business in graphic design and your current computer or laptop can’t sufficiently run Photoshop or a similar program, then you may need to upgrade. However, if what you have can currently get the job done, you might not need to drop big bucks on a new computer.
  • Do you really need expensive office furniture? Yes, looks do matter. If you need occasionally office space to meet with clients, consider renting a furnished office suite. Many commercial office spaces have options available that include furniture and conference rooms. You might not need to go out and buy a bunch of expensive office furniture.
  • Talk to businesses who may be looking to replace their equipment or furniture. If you know someone in business, and it seems to us that you might, talk to them about if they plan to upgrade their furniture and technology. If they are, offer to buy the current things that they have that you need. You can usually get a pretty good deal.

Crowdfunding for Your Business

You have the option of using GoFundMe, Indiegogo, or another crowdfunding site to help fund your startup. Make sure that you read the fine print. Some types of crowdfunding won’t let you have the money you raise if you don’t raise the entire amount. If you plan to offer perks to encourage people to donate, you need to include the cost of those perks into the total that you are trying to raise.

Traditional Financing Options for Your Business

If you have good credit or if you have assets, talk to your local bank or credit union to find out if you can get a personal or business loan to get your business up and running.

If you’re so inclined, consider writing up a proposal to present for potential investors. Just make sure that you know what you’re doing. Most investors only invest in business to make a profit. So, know what you’re getting into.

Try Hello Finance Manager

Last, but certainly not least, we encourage you to check out our Hello Finance Manager loan matching service. It’s completely free for you. We will help match you up with a potential lender. Again, there’s no cost to you. We do the searching and you go through the application process with the matched lenders. Once you’re approved, you get the funds that you need for your business. Disclaimer: Clients A.R.M. is not a financier. This is a service we provide for free to individuals and businesses that need a loan. This is a loan referral program. There is no obligation to those who use the service to follow through with the loan applications.

Good luck, Denver! Keep in touch and let us know how your business is going. When you’re ready to grow, check out our services. We’d be happy to assist you with your business while you focus on growing your clientele.