How To Start A Business With No Money In The UK

When most people start thinking of starting their business, the first thing on their minds is how to get the money needed to start. There are several things you need capital for in the process of starting a business. If you intend to hire foreign workers, for instance, you’ll need to pay for the sponsorship licence application process and that’s just one of many possible expenses.

Starting a business without cash might seem incredibly alarming, but it is very much achievable as long as you can plan it all well. You’ll be surprised at the number of big businesses today that started with little to no capital. If they did it, so can you.

Here are different ways to start up a business without any costs in the UK.

Crowdfunding

Crowdfunding platforms like Gofundme can allow thousands of people to anonymously pitch any amount they desire into your business idea if they like the sound of it, for a reward. All you need to do is trumpet your ideas and get your family and friends to do the same so you can amass as many donations as possible.

If you have no money to start a business on your own, you can seek support from your parents, friends, relatives, and siblings. They could either give you free donations or you might want to offer them shares in your company.

Grants/Loans

The UK government supports some kinds of business ventures from certain industries in some regions. You might need to contact your UK immigration lawyer for more details about opportunities like this especially if you’re a foreigner.

You might also want to go through the traditional route of asking a bank for a loan but bear in mind that this will be impossible without collateral.

Test the Market

Starting a business no matter how small means going into murky waters. It is critical to ensure that whatever you are producing or whatever service you are offering, is needed. Businesses are built to fill in gaps and solve problems. Conduct effective market research either through social media or search engines. The results will let you know whether it’s a good idea and a good time to start your business, what the market needs from you, and most importantly who your customers are.

Work from Home

Remote work isn’t just for skilled folks alone. Remote businesses too, are fast becoming a thing. Working from home saves you costs on travel, renting an office, shop, or warehouse space, and daily transportation fees. If remote work is impossible, try using a local library.

Get Free Equipment

No matter what kind of business you are starting from home, you at least need a computer. If you don’t have a personal one, you can borrow one from a friend or relative. Some websites like Freecycle can help you out with free equipment.

Start a Low-Cost Business

Since you have no cash, to begin with, it is easier to start with a service-based business that would require your time and skills as opposed to a company that sells products that you need to buy and store.

Examples of low-cost service-based businesses include; tutoring, photography, translation, graphic design, digital marketing, blogging, web design, consulting, eBay trading, online personal training, etc.

Use Free Online Services

These days, there are a lot of free open-source solutions to meet your business needs. You can use a platform like WordPress to build a free website or design a free logo with Canva.

You can open business pages for free and market your services on Instagram, Twitter, LinkedIn, and Facebook. You can also take advantage of freelance sites like Fiverr, Upwork, and People Per Hour to cheaply outsource services you can’t do yourself.

Online website builders like Moon fruit, or Basekit, will host your business site for free on their server. Using Wi-Fi at a local library can help you out with internet costs. Getting your website to rank higher on search engines by doing SEO is a cheaper alternative to paying for expensive ads. Never forget that word of mouth is still the most powerful marketing tool, so inform friends and family about it instead of paying for ads in a paper.

Have a Cash Flow Source

If you are just starting a new business, you need to know that the second most popular cause of business failure is a constant lack of money. So even if you do start out a business with no funds, you cannot sustain it that way.

For instance, if you are one hundred percent dependent on your business to cater to your bills, it won’t survive for too long if there is no cash flow source. You can get a part-time job to ensure that you can still pay your bills and pay for any staff you might have.

If you have a full-time job already, consider running your business by the side instead of resigning right away.

Conclusion

Starting out a business with no money doesn’t have to be a daunting task. It is possible to start one in the UK, even if you are a foreigner. As long as you follow just a few of the steps mentioned above, you should have a smooth operation running in no time.  Good luck!