Published on April 11th, 2017 | by Jose Vasquez0
Can You Launch a Startup Tech Company With No Money?
Many Americans dream of starting their own businesses, but can you start one without any money?
If you’re like most Americans, you’ve dreamed about starting your own business. You’d get to set your own hours, do something you’re truly passionate about, and create a path to practically unlimited wealth (with the right idea in place).
However, most prospective entrepreneurs are forced to put the brakes on their ideas because of one towering challenge: money. If you don’t have the money to start a business, it may seem impossible to become an entrepreneur—but is it?
Why You Need Money
Let’s take a look at what you need money for in a startup:
- Admin and startup costs. You’ll need to file your business’s name with the state and pay for startup costs, such as building a website, but cumulatively, these are inexpensive if you choose the right options.
- You’ll need things like desks, computers, and furniture, but if you already have some or are working alone, you can get by with just the basics here.
- Depending on your business, you may be able to go it alone, but you may also need to hire employees—and most people won’t be willing to work for free.
- You can set up shop in your garage to start (I did), but you may need to invest in an office, depending on the nature of your business.
- Consider the services you’ll need, such as internet providers, vendors, and legal representation. These costs vary wildly depending on the nature of your business.
- Don’t forget that this is your livelihood, and you’ll need to pay yourself, too.
The Need for Revenue
You may need only some of the above items to get started, but to keep going, you’ll need even more of them. Your first goal, therefore, should be to establish a line of revenue—even if you’re able to get started with only a minimal investment. Only with a clear path to initial revenue will you be able to start a business with limited funds.
Is It Possible?
No matter what, you’ll need some money to start a business—but depending on your business model, you may be able to get by with only a few hundred to a few thousand dollars, initially. As long as you have a fast way to establish revenue, you can get started with a minimal setup; otherwise, you can turn to fundraising options like venture capital, angel investing, or crowdfunding to get you going.