Starting business with no capital | BLOG
Big idea! Big dream! But all in vain; i am waiting to get the capital! That’s the story with all the entrepreneurs to be. And this song runs across the world.
Most of the businesses started with minimal budgets. Likes of Dell in a garage, microsoft and facebook from the dorms and Cocacola from the backyard. You can too start that way. You do not need an office or warehouse or shop to run a business.
If you can check the definition of an entrepreneur, you will find it as “An entrepreneur is a person who organizes and manages a business undertaking, assuming the risk for the sake of profit.” In wikipedia, Cantillon defined the term as a person who pays a certain price for a product and resells it at an uncertain price.
Using Cantillon’s definition, you do not need to be a manufacturer, not especially now. That’s the work of an industrialist. Of course you will need money to be an industrialist. But if you have a passion for a product or service, you could just pick the product at wholesale price and resell it to your customers. Period!
I will give you an example of a working business. ADEAGIFTS, you can check it out at www.adeagifts.com does not produce the gifts. It just delivers the gifts to its customers. Once a customer orders a gifts online, the AdeaGifts staff then gets the gifts from the suppliers and delivers it to the client’s reciepient. The business model is that simple.
What is the advantage of this business model?
- You just need to set a website and talk to your suppliers. Negotiate prices with them.
- You do not need working capital, the clients pays in full before you offer the product or service
- There are no debts incurred.
- There is no office needed. You will communicate with your client’s via email and phone. The website is your shop.
- You do not need to employ, especially if you can manage the supplies
At Getting You Online program, we are promoting the same business model. We have seen it work and we would like it to work for you.