How to become an entrepreneur with no money or business experience
We won’t lie to you – 90% of startups fail. Entrepreneurs also suffer from more stress and are more prone to anxiety as a result. You face personal responsibility for every setback because the bottom line is on you.
However, starting a business can be one of your life’s most exciting and rewarding experiences. It’s not impossible to become an entrepreneur, even without experience and much money, and you’ll reap the rewards one day.
From this article, you’ll learn how to identify lucrative startup ideas, such as online stores, how to get inspiration, and how to receive funding for your idea.
A successful business starts with an idea
You can’t create a company without an idea. As a start, talk to those closest to you. Ask your friends about their pain points. A profitable idea is an idea that provides a solution to an issue or frustration that people are willing to pay for. Uber was founded because Travis Kalanick and Garret Camp would have trouble getting taxis. You could ask friends to share daily frustrations and look for issues you could solve.
Kickstarter is a good place to check for new physical products, while Product Hunt consistently updates its collection of the latest games, sites, and apps. It can offer some much-needed digital inspiration.
Identify a category
Alternatively, consider a growing category of products or services and delve into it. Consider industries with a low entry barrier. For example, building an online store can cost as little as $1,000. Of course, that cost can increase because it depends on the company’s needs, but a small company rarely pays more than $10,000.
You also don’t need experience to start an online store. WordPress, Shopify, and Magento are all beginner-friendly platforms you can use to build and launch your ecommerce website.
Choose a category that’s interesting but also not too competitive. The toy industry is an example of a challenging category because a lot of people are creating in this field.
When you choose a category, study all the products in it. Consider the following:
- The varying benefits of each product
- The reviews
- The packaging and marketing strategy
Also, think about any potential improvements that can be made, like using a different material, adding a new feature, personalizing the product, etc.
Research your target group
To validate your business idea, research the buyer persona. You need to establish whether people will be interested in the product.
To what extent is it viable? Consider the demographics of your target group: age, gender, location, etc. Then, interview potential customers. You could do a demo of your product, ask what they like and what they don’t, how often they’d use it, and how much they’d pay.
Consider getting a co-founder
Having a co-founder has several distinct advantages: getting funding is easier, you have moral support, and you can benefit from their skills.
Improved prospects
A co-founder won’t necessarily contribute to your success, but investors tend to believe they will. They are less likely to support a solo founder. According to Y Combinator co-founder Paul Graham, it’s no coincidence that few successful startups had a single founder.
Moral support
Running a company is exciting but stressful. You’ll have someone to share the ups and downs with. Your co-founder will know what you’re going through, and you won’t feel so isolated.
New skills and knowledge
Your co-founder’s skills and knowledge will complement yours. They might have interpersonal skills, while yours are more technical. They have experience founding a startup, and you have lots of connections.
Downsides of having a co-founder
You will inevitably have disagreements with them, and you’ll have to split the equity and profit. You start with all of the equity if you’re the sole owner. With time, you’ll get funding and hire more people, and you’ll distribute the equity, but you’ll be giving less than if you had a co-founder. They will take 50% on average, maybe more.
How to get funding
Funding options include loans from friends and family, a small business grant, crowdfunding, and angel investors or venture capital firms.
Local, state, and federal governments have programs to help startups, including grants and low-interest loans.
Kickstarter, Fundable, GoFundMe, and Indiegogo provide backing through an online campaign. You can get money, brand awareness, and product feedback. You can even get a press release published if your story is interesting or your product is unique.
