22 Steps To Start A Micro Business – With No Money
Can you really start something with no money?
Firstly, a business that is started with no money or very little money can be achieved.
Moreover – this has been achieved by millions of people worldwide for many years.
But it can cost a great deal to start a business ‘if’ a person is unaware of the real options.
Micro Business Options
That is why it might be a good option to study this post and consider going for a micro business model, as one can be started from home with minimal tools and resources.
How though? And what is a micro business exactly?
A micro business is simply a smaller business than a small business, and can be started with just yourself growing it.
To Break It Down For You
This means that it has same principles as any other business with regards to operation, tools, resources, marketing and set up.
But it can be easier to start as it takes less time, money and energy to set up, and can require minimal materials.
Meaning you don’t have to always take out initial loans, use savings, borrow from friends and family.
Plus this could mean you might start something right away with no extra expenses to you.
If it can save you money, it can also potentially create a profit margin quicker.
TIP: Through a wider lens it might even save relationships that may otherwise be affected through financial losses, and believe me, I have seen many people fall out through business and through borrowing and lending money from ‘friends and family’.
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What skills do you already have?
Could you have some useful talents you have missed?
All business skills are useful that you can bring to the table initially, as this way you can do much of it yourself, and spend less on outsourcing.
For example;
Can you market?
Do you know how to sell?
Are you able to build rapport with people?
Could you undertake tech tasks?
What are your writing skills like? And how about your art skills? Are you a content creator?
Would it be possible that you know how to build your own brand?
Are you good with numbers?
These are just some examples of skills that can assist you in the Steps To Start A Micro Business – With No Money.
And if you can save time, energy or money by doing things yourself then that’s a bonus.
As we are now living in times where many suffer from financial issues, it can pay to use skills we have and start free and small.
Money is tight in our current economic world, thus this option may help you to get started without too much stress.
Here is a real example of what you can do with no money
Are you any good at DIY? I’m not, but if you are then you may be able to start a sideline in fixing stuff for others.
And you might already have the tools to do so.
Plus you don’t need really need to be tech savvy in this example, as the business is predominantly offline.
When you start earning a little income doing this, you could then expand your digital presence and exposure afterwards.
To be clear, it will pay to be smart upfront.
That’s why many people use themselves to make money now.
It could be that you are good at baking, making videos. selling vintage clothing, creating craft, doing voice overs, translation and more. Perhaps you can re-purpose stuff and fix old products that are sought after.
Some people literally spend $0 to begin, and I have personally worked with several this way.
TIP: A general rule of thumb though is to have around £1000 if possible to invest into business ‘if’ the business requires certain or specific tools and resources. And this is useful as a back to unaccounted for costs and expenses.
Microbusinesses don’t have to be expensive, but they can be expanded.
That is the beauty of this type and style of business.
Here are some examples of cheaper startups; influencing, art, writing, making clothes, affiliate marketing, creating food, cakes, drinks, websites, content, consulting, selling other people’s stuff and more.
22 Steps To Start A Micro Business – With No Money
15 years ago I started this way.
I wrote books, blogged, consulted, did a podcast briefly and sold others products and services.
So I started very small using myself.
You might not want to but it is possible.
How can you grow this micro business?
Ultimately it may require a social media master, hiring website developers, or maybe having a small team.
But the beauty with a micro business model is that you can start without it.
In some cases you need any of that at all. You (like me) can still grow it without outside help, at least initially.
But start with a solid business plan.
Why? Have you ever heard of reducing risk? It is a fundamental element of a good business structure.
Don’t risk it all when it can be somewhat controlled. Simply, the more you put in up front, the better the chances you have.
Cash flow
Do you know what cash flow means?
Quite simply cash flow is a measurement of the amount of cash that comes in and goes out of your business for a period of time. Positive cash flow means you have more cash coming into your business than going out. But negative means you have more going out than coming in.
THIS COMPANY QUICKBOOKS CAN HELP YOU WITH GETTING YOUR CASHFLOW RIGHT
Gathering Feedback
How do you know that anyone will buy anything you sell or promote?
Anything you wish to sell means understanding your market. Or a market that may need to be created.
Form awareness around potential customers, and where demand is.
Perhaps you could serve an underserved area, so you can fill a gap and become the primary seller in your area, for example.
Start by exploring, researching, collecting data, doing polls, surveys and questionnaires to help gather the information that will help you to start right. This way you soft test what you have with those you know in your circle to see what affect it has.
Never be afraid to ask for honest feedback either, because it is this that can give you the most valuable information to become the best in your market with a good foundation.
If you avoid this you bury your head in the sand.
So get thick skin and roll with critique no matter what you decide to do. As this is valuable.
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You can sell local, online or from your own home, and you can use many free simple tools to support your idea or brand.
Plus by asking others what they would think of what you are doing, you gather that vital information.
Let’s say for example that you want to write for others; you may need a laptop, Wi-Fi, and a quiet space, and that could be easy establish, but – you also need to know how to produce quality content that sells to the right types.
TIP: Offer to write for friends and family first, or contact professional writers and ask them their opinion on your content, so you can refine it.
Use other peoples tools. Personally use WordPress platform and you can start your very own blog here:
22 Steps To Start A Micro Business – With No Money
Having little money when starting a micro business is not the end of the world, as you can follow these tips:
- Remember; marketing doesn’t have to cost the earth, in fact some is FREE. Get out there and promote yourself, you have a circle of influence and beyond that also. So pay attention to where and how you can use what you have for free. You have a mouth and ears (I hope)? So use them.
- Make a list of ‘all’ the best tools and resources, talents, abilities and skills you have. You will surprised at what you find, what you can use and what can help and support you. I messaged successful people whom I respected, and respectfully asked them questions. You will be surprised how nice many successful people are and what value you can glean from them.
- Business models – What do you REALLY need. Do you understand what types of business model are best for what you wish to do? Also if it is just a laptop, a plan, structure and strategy then get started. You can leverage Instagram to share yourself. You can even earn by promoting Instagram. Leverage Facebook properly, TIKTOK and X, ensure you share stuff and build up a brand image and rep that others latch onto. Test free platforms and invest into what works.
- Choosing a business model the basics. It is worth considering a lower cost model – for example consulting! This is a cheap model to start. Think of a low cost model by using yourself, your skills and talents. It might be teaching, freelancing, writing, Selling vinyl records, online marketing, lending an extra hand, pet sitting and so on. This is very different to the cost of creating products, or having to use manufacturing or development. Make sense?
- Serve locally even if you are predominantly online, and get out and talk to people over coffee. If you live in a community that needs what you have then let them know. Talk, get around and create mini posters. Ask to put them up where there is human traffic.
- Creating my own brand was free by studying YouTube videos and using free tools, anyone can do this. All you need to do is look at solid brands and professional sites and essentially look to create something as professional. Study the successful.
- Can you offer to do things in exchange for the things you need, and keep costs low? Where can you find others that could offer you something? And you from them? Often times I would hire students at my local University to write for me, and they would use their work for their own projects. I would speak in front of students at business events to network and discover the resources I could use – and they could also use resources from me. Win win!
- Take note of costs and look at ways in which you can reduce costs, as this way you can grow and scale whilst keeping risks low by using less money. Calculate your costs whilst things are small and it is more simple to do. What are your expenses going to be? Will you need to hire anyone? What equipment might you need? What will you register your business as? What insurance will you need and why? Will you need technological office software and hardware? Will you need to rent a room/space? What will monthly, quarterly and yearly costs add up to? And so on. Ensure you include all costs. My girlfriend is way more organized and focused than me with numbers, so she was able to do my books. I provided her with plenty of gifts, food, drink and love in exchange. 🙂
- Shop around for the businesses that understand what you are doing most. Try to shop local to support them in business. Get them to support you in exchange. Don’t be afraid to ask other business owners where they get help and see if you can be someone that can help them. Maybe you can collaborate on something?
- Ensure you are ethical and go by the book. Register with companies house if in the U.K. and understand what TYPE of business you want to start. For example – a micro business is likely to be a Sole proprietorship, but it could become a general partnership, and there may be legal structure terms you will need to look over. Simply, you will need to structure your business appropriately. And get insured to protect you from losing assets. And as you grow you may need to hire others, so be mindful of this. Protect yourself: You may make mistakes or not always give total customer service, and you may even make an error with your services or products, so it pays to stay protected. Challenges happen after all.
- Start with marketing free, by making the most of social media and in person marketing. As you grow these you can increase your marketing mix to ensure you are not missing a vital avenue in promotion. THIS IS A GREAT ARTICLE ABOUT MARKETING MIX BY INVESTOPEDIA
- Don’t expect miracles overnight. It is a bit like the term ‘overnight riches’ that some scammers use. There is no such thing. Hard work, perseverance, determination, courage, sweat and tears are what build a solid business that can last past it’s first year. TIP: What will help you is to reduce spending on urgency fixes. We all love a buzz from buying from time to time right? I know, but I cut back on stuff that is not of much value, as it can really help support your investment.
- Embrace change. AI is firmly here, the digital space is firmly here. keep your head above the curve and always be on the look out for self expansion. Don’t get left behind because of some stupid ideas that you know it all and do it all. You may need to pivot and move with the times at some point, and that’s ok as you will gain great business experience from this and that will help you forever.
- Studying your numbers. You can do this with your partner whether business or personal, and it will pay to be realistic about what cash flow could look like. Through your plan and strategy you forecast what will come in and go out. Ask yourself: ‘What will my first 3 months, 6 months, 9 months and year look like? Why? And what can I do to ensure this occurs’? If you fail to plan for cash-flow you will likely fail because expenses need covering and paying.
- Have you put any money aside that you have saved? It is wise to have something to work with because the chances are that you will need more on expenses than you first thought. Even though you will be keeping costs low, in reality there are always unexpected expenses that can crop up. Could you borrow anything and pay it back with low interest? Bear in mind that the more you do UPFRONT the lower the risk LONGTERM is a general rule. If you are going to borrow from someone, don’t be ignorant by throwing money at something in the hope that it will stick.
- Connect with other business owner groups and ask questions. You don’t have to tell anyone what you are doing to ask questions. And besides – some see you as potential competition so keep your cards close if you need to.
- Read books, watch videos and study successful micro and small business types. You can learn tons from observing how businesses are generally run, and through buying from others. I always make a point to study payment processes, follow up, customer service, quality and standards and basic ethics in all kinds of businesses. I make notes on what is missing and what I can do better than them.
- Could you and a friend start a micro business together? Could they have skills you don’t have? Could they bring what you need to the plan? Be transparent and upfront, so they know exactly what they are getting into. This might also include a partial source of revenue. Investment; there may be a way as business partners and with a robust plan that you could secure a small loan. But from where? Banks, government, entrepreneurs that can see the potential, and even crowd funding, if you think it is a justified and viable source. TOP 10 SECURED AND UNSECURED BUSINESS LOANS UK BY MONEY.CO.UK
- Never stop being your customer. What do they think? What do they want? What do they not know they want? What don’t they want? What do they do in their lives that relate to what you offer? What are they missing that you could offer? Besides, you buy stuff right? Of course, so you know how it works, and what you feel is useful versus what is not.
- Starting small. This is micro business after all. It is better to build simply and small. Find a handful of loyal solid buyers or customers that love your brand, idea and concept. Enable that to spread and expand. Don’t try to appeal to too many. Why? You may lose many people and create unnecessary issues that can be avoided by starting specifically, tight and small.
- Practice, refine, adjust, tweak and adapt where necessary. YOU MUST always get better and know your craft inside out. Be so passionate about it and your purpose, that success is the only option.
- More resources: Start taking notes and researching what you will need to know now and always stay ahead of the curve. CLICK TO READ WHAT TAX I NEED TO PAY EXPLAINED BY BRITISH BUSINESS BANK CLICK HERE TO LOOK AT SIMPLY BUSINESS OPTIONS FOR INSURANCE CLICK HERE TO READ NERD WALLETS TOP 10 FUNDING LOANS IN THE UK
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22 Steps To Start A Micro Business – With No Money
Further Vital Tips To Focus On:
As time passes and as cash flow seems to be improving as it comes in, you may then wish to further expand your options when it comes to borrowing money. If you must do so that is.
But before you trust anyone, take a good look at your options. And gather information on banks, loan companies and interest rates. Don’t just go for anything, really look into what best suits your business model and future, as you expand and scale.
HERE IS NERD WALLETS TOP 10 BUSINESS LOAN RECOMMENDATIONS
Online lenders can be typically casual in lending as they charge interest. And business credit can have higher rates than personal credit, so be sure to grasp that and make sure you monitor your outgoings and all spending from the get go.
Do you need a line of credit? This option could be with a bank but can come from other organizations also.
This enables many to draw on the facility when requiring funds after a year.
TIP: Never ever spend this money casually, as it is not money to splash out with.
FACT: I have seen many people blow through borrowed money on random stuff, and this leads to certain failure.
More on Borrowing from experienced experts
I recommend you avoid borrowing where possible when the business model is small, and if you can keep costs low as you create more cash flow, you can later consider having another invest in you.
Experienced investors and venture capitalists may be useful to you in the future.
They may offer that invaluable experience through support and guidance which can be worth a great deal to your success.
Consider this; they may have been there, done it, and ‘hopefully’ will have done so in a similar model to yours, so they have greater wisdom when working with you and investing in you.
Time to study your market and get a license
Before you apply for a license, remember to research what you are entering into
And remember that you will need to study competition, pinpoint the demographic of your ultimate buyer/customer/client.
Conduct those all important surveys and collect that data now.
HOT TIP: Look at what your customers are currently doing and where they are going. See how you can offer more value.
Determine their likes and dislikes, but also define what they may have yet to experience that you can offer.
In doing so you will improve your knowledge of your model and how it may shift over time.
CLICK HERE TO SEE IF YOU NEED A LICENCE PERMIT OR CERTIFICATION BY GOV.UK
22 Steps To Start A Micro Business – With No Money
Before you apply for a permit or license you should take into account that you will need to offer clarity around what you propose to do. The clearer you can be the better.
Ask yourself:
What business insurance and tax do I need to be aware of – for the structure of business I intend to start?
CLICK HERE TO SEE ESSENTIAL INSURANCE AS SOLE TRADER
CLICK HERE TO SEE WHAT INSURANCE IS REQUIRED FOR CONSULTANTS
CLICK HERE TO SEE WHAT TAX A FREELANCER PAYS IN THE UK
CLICK TO SEE TAX REQUIRED FOR SOLE TRADER
Do I even need a license and/or permit for what I intend to do? CLICK TO DETERMINE IF YOU NEED A BUSINESS LICENCE OR NOT FROM SIMPLY BUSINESS
What legal structure do I require for my business? CLICK HERE FOR CHOOSING THE RIGHT BUSINESS STRUCTURE BY GOV.UK
Have I registered my business with HMRC? HOW TO REGISTER A BUSINESS 2024 GUIDE
Starting A Business While Employed, Can I? CLICK HERE TO UNDERSTAND THE PROCESS OF STARTING A BUSINESS WHILST EMPOLYED BY YOUR COMPANY FORMATIONS
Am I clear about my business plan and strategy?
CLICK HERE FOR FREE BUSINESS PLAN TEMPLATE WITH HUBSPOT HERE
CLICK HERE TO LEARN WHAT A BUSINESS STRATEGY IS AND WHY IT IS IMPORTANT
Where will I find sufficient legal advice from a trusted source?
CLICK HERE FOR BUSINESS LEGAL ADVICE WITH THIS PROFESSIONAL COMPANY LEGAL VISION
Will my tax change if I start a business whilst being employed?
CLICK TO UNDERSTAND HOW TAX IS AFFECTED BY STARTING A BUSINESS WHILE EMPLOYED FROM FREEAGENT
Get Focused
What to do consider
Be mindful that whilst a micro business model can be an easier business to set up, as it can be started from home and possibly online, it doesn’t mean you should not see it as a SERIOUS growth opportunity!
Focus on spending the allotted time to be serious about your business.
Never stop working on it. It’s not a hobby!
Here are some typical micro business models that can be started with no money and some with little money:
Freelancer
Blogger or Vlogger
Writing, editing, proofreading
Online store operator
Landscaping business
Florist or small coffee shop
Street Van or Vendor
Furniture restorer Upholsterer or Up cycler (Huge business area these days)
Cobbler and or shoe repairs person
Carpenter or Plumber
Micro farmer
Cake or card making
ETSY or EBAY Selling
Beautician or Nail Business
Music Artist or music writing and production
DJ
Influencer
Art creation Online or offline
Photographer
Sustainability Consultant to businesses
Old tech refurbisher
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Any of these areas getting you pumped up and excited?
Great!
Microbusiness Facts
Did you know? Starting out you will ideally and typically have less than 10 employees.
It may be just yourself for the first few months or first year, but if you wish to expand (depending on where you wish to take your business) you can then hire accordingly.
You will be pleased to know that a microbusiness doesn’t mean micro levels of revenue. Did you know that your annual turnover can be up to a maximum of £632,000 in a micro business?
Not bad huh!
Just because it is a micro business, and might be operated with just a laptop and internet connection, it is important to treat it just like a huge business. Don’t be casual. Even if costs are minimal, and even if you can work at home in your pajamas it doesn’t mean you should be half hearted in applying your passion, consistent time and energy to it.
You must allot specific time and energy towards growing your business every day, until you require outside help.
Later on you might hire others for specific roles to do specific tasks.
22 Steps To Start A Micro Business – With No Money
Time to take some notes on this:
- Is my idea original and still feasible? Is there a proven demand for my product or service? Do I have the experience and background to make my idea, brand or innovation flourish? Am I REALLY the kind of person who can be my own boss?
- Is this a business model with a history of growth? What does my competition look like? If there are already a number of micro businesses in this market or area, is there a way to operate in a different way or area, or even serve an underserved market in or similar to this competition area?
- How will I be acquiring my first customers? Do I already know them? Who might I connect with to start finding a loyal fan base? What options do I already have for promoting my brand that is free or at least affordable for me?
- Web design mistakes to avoid when I am starting out
- Designing a site before determining target market and goals. Understand my specific market.
- Over-designing a site or under-designing it. Study established experts sites.
- Making my website too flashy or just too busy to use and navigate around.
- Making my content too text-heavy. Keep it simple, clear and clean.
- Allowing typos and other mistakes. I will spell check everything once written.
- I will get experts and friends to look at my site and give critique. Stand back and study all views.
- Ensure I keep my content current and present. I will check all words and edit where necessary.
- I will ensure my site is easy to for a call to action. I will test it myself and with friends.
- I won’t borrow any money until I have read and absorbed this:
- Could my business repay the loan out of its cash flow looking at projected numbers?
- Am I in a position to stand out from my competition enough to create sufficient sales?
- Could I potentially repay a loan using some form of collateral if my business failed?
- What is my personal credit history like and is it healthy moving forward?
- Can I find a reliable, trusted and proven sources to borrow money from?
- What can I learn from my past history with creating profits or making money?
- What is my experience with growing sales if any and what can I study to improve this?
- Am I ahead of the curve when it comes to looking forward at my industry area choice?
Sharing Is Caring!
I hope you have enjoyed 22 Steps To Start A Micro Business – With No Money, and if so why not help another by sharing.
Wishing you the best. Now it’s time to start a micro business!
Greg
22 Steps To Start A Micro Business – With No Money
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