22Aug

    How do I start a business with no money and no collateral?

    By Lauren Kress | Blog, Article | 22 Aug 2018 |

    I quit my job when I was 26 and started my business with no money and no collateral but had 6-figures of business booked within 3 months of venturing out on my own.

    I spent money on registering the business and…that was about it…

    Here’s how I think of it:

    If you wanted to go traveling overseas for the first time - you wouldn’t just rock up to the airport to jump on a flight.

    You’d have a flight booked, your bags packed, your passport, travel insurance and maybe a bit of an itinerary…right?

    It’s the same with business.

    If you want to start your own business, think of it like you’re going on an adventure overseas - you need a bit of planning - even though your plans might change.

    First, work out what your passionate about and then build a blueprint for your offer so that your business doesn’t become a rod for your own back.

    "To live life your way, there are 3 pillars you must build your business on: Purpose, Freedom and Wealth."

    Most people who start a business are “struggling survivors” - but it doesn’t have to be that way.

    To live life your way, there are 3 pillars must build your business on: Purpose, Freedom and Wealth.

    Here’s my top 3 tips for getting started with little or no collateral:

    1. Don’t take a leap - build a bridge

    Most importantly - if you want to start a business with low-to-know risk and cash in the bank, provide a service that solves a specific problem and get your first foundation client before you quit your job.

    Just like you would have money aside for a trip - have a bit of money aside to give you some breathing room when you launch into your business full time and start servicing your first few clients.

    2. Start small

    Have a proof of concept that you know you can generate money from. A few clients that are willing to invest bigger $ are better than lots of FB followers and a pretty website.

    I’ve seen people invest tens of thousands of dollars in a website before they have a customer.

    I’ve seen people build full programs before they know if there is a market for what they want to sell (and in case it needs to be said - herein lies the problem)

    I only had 5 clients, a crappy website and hardly any brand assets in my first year but I had more money and time than I ever had being employed.

    3. Swim in the blue ocean

    Don’t do what everyone else is doing - if you solve the same problem that thousands of other businesses already solve (and already solve better) - you’ve got a lot of catching up to do and you’re going to be hunting for scraps in a bloody, red ocean.

    Swim in the blue ocean where you can find a few nice big fish - this means solving a specific problem for people (whether consumer or business) that not many others are solving to begin with.

    You learn a lot in the first two years of running a consulting agency. Most importantly, you realise that you don't have to spend 90,000 hours of your life doing drone work while you live for the weekend - instead it can be spent doing something that truly inspires you.

    "You don't have to do drone work while you live for the weekend."

    Today my mission is simple: To help 10,000 people escape the 9-5 grind to gain financial freedom by pursuing their passion and starting their own purpose-driven business.

    Thinking about making the change? Hit the button below to jump on a call with me and I can give you some more pointers on how to get started.