How To Start A Business With Virtually No Money: Lean Startup
In the midst of the several business books that already existed, Eric Ries’ book The Lean Startup was a breath of fresh air. The book’s main focus was questioning how business owners conduct themselves.
Entrepreneurs should spend less time preparing and more time doing, according to Eric. He believed that business owners frequently make expensive mistakes in developing their products or service. Entrepreneurs make decisions in boardrooms that ought to have been made in the marketplace.
The minimal viable product (MVP) idea was first developed by the Lean Startup. The MVP is the form in which your good or service can be made available on the market, much like the atom is the smallest unit of life. The MVP is not a fully developed or well thought-out concept, but it does exist in a usable form that enables the entrepreneur to take it to market; he then continues to change the product based on real-time marketplace feedback to make it more valuable to the customers.
In layman’s terms, a lean startup is a company that launches with the least amount of capital, personnel, materials, etc. I have started a few businesses and assisted others in doing the same, and many people have the wrong mindset or lack the necessary skills.
Many people believe they need a large sum of money to launch the business of their choice, but my motto is that any potentially successful large firm can be launched in a small way. This article discusses the mindset that must be adopted when starting off with few resources.
Starting a business? What is not crucial?
I’ll tell you what isn’t important first, then I’ll tell you what is. To launch a business, you don’t need an office. What if I want visitors from my customers? Maybe 10% of your customers would be interested in seeing you. If you still feel that having an office address is necessary, consider getting a virtual office address, asking permission to utilise a family member’s or friend’s company address in a busy area, or paying a fee. Using your home address is the last resort. But please accept my word that having an office is not necessary at this point. Additionally, starting a business does not require an office car.
Branding and logos
I know of someone who delayed starting his firm for six months while searching for the ideal logos. Seriously? For startups, brand identity is overrated. The majority of the well-known large brands changed their names after experiencing some success. When you achieve success, you can start to care about your appearance.
Goals and objectives statement
Again, this is crucial, but when getting started, it’s acceptable if the image in your head serves as your motivation. Save yourself the time and money it would take to frame and hang this in an office that you actually don’t need.
To perform work, you hire individuals. You don’t hire individuals expecting them to work for you. Start with as few individuals as you can. When you are the one paying salary, thirty days fly by pretty rapidly. As a general rule, avoid anything that drains your cash flow yet has little to no bearing on your objectives. Watch out for actions that advance your launch date but have no effect on the following crucial factors.
What is crucial?
It is not necessary for it to be a lengthy document. In actuality, you may make use of the business model canvas, its cousin. Your map is the plan. You shouldn’t launch your business without a business plan, just as a pilot won’t be permitted to fly without one.
How can you draw in clients besides the five people that have been promising to buy your product? Don’t presume that because your product is good, people will buy it. How do you want to draw in clients? Why ought they to purchase from you? What makes your offering unique? Do you distinguish between products based on price, value, or both? How can you explain that to your clients? Is the purchase of your goods one-time or ongoing? How frequently are purchases made? What number of units must you sell? If you don’t sell that many, what happens?
How will your goods or services be delivered? Where do you get your input from? Where do you get your supplies? What is the turnaround time for your services? How might you maximise? Utilize a recipe? Is it documented? Can anyone else manage your business if you aren’t around?
Have you kept track of your costs? What is the strategy for upholding it? What sales forecasts do you have? Is there a backup plan in case your numbers don’t pan out? What underlying assumptions are there? Has your cash flow been negative? Can it be buffered? Which funding strategy will be used—debt, equity, or personal savings? What occurs if you don’t receive any?
Utilizing lean startup can help you focus on the crucial elements. You’ll notice that the main things are free. People often claim that they lack the funds necessary to launch a business. It is true that they lack capital since they only view it in terms of money. They are short on mental resources. Financial capital, educational capital, reputational capital, relational capital, and mental capital are the five types of capital available to entrepreneurs.