If you’ve struggled financially due to job loss, medical bills, divorce, or any other reason, the idea of starting your own business may intimidate you. However, this doesn’t mean you should give up on your entrepreneurial dream if it’s something you’ve always wanted to do. It’s very possible to start a successful business with little to no savings or startup funding, and these tips from the podcasters at That Entrepreneur Life will tell you how!

Start a Side Business

After experiencing one or more financial setbacks in your personal and/or professional life, you may not have the startup capital needed to quit your day job and pursue a full-time career as an entrepreneur. Instead, it’s likely you’ll need to start a side hustle and give yourself a couple of months (or years) to build your business and generate positive cash flow. Most companies operate for two to three years before becoming profitable and launching your startup as a side hustle will allow you to build your business without much financial risk.

Reduce Startup Expenses

When launching a business, common startup expenses include things like rent and utilities, office furniture and equipment, payroll services and taxes, education and training, and marketing and advertising. But when you’ve experienced past financial hardships, it’s important to keep these costs down and invest in only what’s necessary to build your business. 

Here are a few ways to reduce your startup expenses when taking the entrepreneurial plunge:

  • Utilize free online classes and other business tools to build entrepreneurial skills.
  • Launch your business from home to save on rent and utilities.
  • Use the internet to search for discounts before making purchases.
  • Purchase your business equipment and office furniture second-hand.
  • Market your business for free or cheap.
  • Keep staffing costs down by hiring freelancers or unpaid interns.

Choose a Payroll System

Whether or not you hire employees right off the bat, you’ll need to choose a payroll system to keep track of your time, projects, and earnings as an entrepreneur. QuickBooks Small Business is one popular option for all things time tracking, invoicing, and reporting — as these plans can be accessed on your mobile device and integrated with other software systems. 

Moreover, QuickBooks can also be used to simplify the process of managing your employees and their timesheets. And if you and your teamwork remotely, being away from the office is no problem with the QuickBooks Time mobile app. With the right payroll system, you’ll save time on bookkeeping responsibilities and avoid costly accounting errors.

Look for Financing

If you have poor credit but need money to fund your business, you’re not out of luck just yet. Crowdfunding and bad credit business loans can both be used to finance your startup, including short-term loans, business credit lines, and equipment financing. It might also be helpful to bring on a business partner, as this person could help to finance the startup. 

Bad credit business loans are ideal if your credit score is lower than 580, but lenders will look at several other factors when determining your eligibility for business financing. These factors include annual revenue, debt obligations, cash flow, and profitability. Until your business becomes more profitable, crowdfunding may be the best option.

The Bottom Line

Even if you’ve experienced one or more financial setbacks in your life, it’s possible to launch a successful business with minimal investment — especially if you choose a low-cost business idea, work from home, and start a side gig while you’re still employed full-time. It’ll take some time to build a profitable business, but that’s no reason to dismiss your entrepreneurial dreams. So don’t wait any longer: Go ahead and take the entrepreneurial plunge today!

Ready to simplify life as a busy entrepreneur? Listen to podcast episodes from That Entrepreneur Life online or on Apple Podcasts, Spotify, or Google Podcasts.

Written by Derek Goodman. Derek is an entrepreneur who offers tips, tricks, and resources so that you realize your business ability and potential now, not later.

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