How to Create a Startup with No Money

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Answered by: Krasimir, An Expert in the Start Up Category
So, you’ve got an amazing idea for a startup. Your product will be a game changer and you are sure of its success. But there is a problem - you don’t have the funds to materialize your idea. I’ve got good news for you - these days raising funding for your business is easier than ever. Read on to find the four main ways to create a startup with no money.



Crowdfunding

There is a slim chance that you’ve never heard of Kickstarter. The crowdfunding platform disrupted the traditional process of acquiring funds. It's so simple, yet so powerful - you explain your idea and people that like it give you money. It doesn’t get easier than this to acquire the necessary funding for taking the next step - prototyping. Then, you can use the prototype for another crowdfunding campaign that will finance mass production.

Angel investors



They are called “angel” investors for a reason. Unlike traditional investors, the “angels” take huge risks and invest in companies with uncertain future. Of course, getting a “yes” from an angel investor is tied to how well you pitch your idea. These people know the difference between a risky decision and a stupid one. Hence, you are not going to get even a penny if you take your business as a joke. On the upside, unlike venture capitalists, angel investors focus on the likelihood of your success, not on the success of your product.

Accelerators

Joining an accelerator program might not bring you funds right away, but it will teach you how to acquire them. “Joining”, though, might not be the correct word since getting into a quality accelerator is about winning over a panel of business experts. So, just like with angel investors, to secure your place with an accelerator you need to prepare a serious pitch. An added bonus of accelerators is that with them you are getting much more than advice on how to raise funds. The point of accelerators is to give you all the knowledge that is necessary for your idea to develop into a full-grown business.

Bootstrapping

“Bootstrapping” means that the investment for your startup will come out of your own pocket or from friends and family. Many startups were bootstrapped in their early days, but can you scrape together enough to fund your startup? On top of that, knowing that you are risking the money of your closed ones might add unnecessary pressure that will reflect upon your work. Besides, the other three options will cause you to create a serious business plan that will serve as the basis for the development of your startup.

These are the four majors ways that startup founders get enough funds to develop an idea into a product. As you can see, there are more than enough ways to create a startup with no money. Whether you'll succeed with the first three depends on your convincing abilities. The last one might be easier, but it will likely lead to very modest investments. Now it's time to define your needs and get your funding.

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