A lot of people have great business ideas but do not have money to start up these businesses. It is true that having some money of your own, some investors or a few friends and family members who can help with money to start up is important. This, however, should not be an excuse of not executing your business idea and turning it into an actual business. If you have confidence in the product or service you are intending to offer, it is very possible to start the business without money. If you are wondering how to start a tech company with no money for instance, below are some guidelines that can really help you.
Get the Vision
The first thing you need when starting a tech company is to bring the vision from your head and write it on paper. This gets it away from being just an idea and transforms it into something real. The next thing you need to do is interview a good number of potential customers say 70 of them. The responses should help you in revising your canvas. You need to be careful in viewing the patterns of response. Lastly, you need to make wire frames and interview customers to get responses on what they think about it. Doing all this will enable you to know who your customer is and what kind of product they want and you get to do all this without money.
Of course, there are several other things involved such as selecting a domain name (you can use a domain generator for that), setting up any social media channels and branding, as well as any other marketing strategy you plan to implement.
Start with Offering Services
A business that is product based requires a lot of capital to start since a lot of materials are required to create the products. A tech company can be both a service-based as well as a product based kind of business. For this reason, it is very important to ensure that you offer the services first at a price when starting up. The importance of offering services is the fact that you will not require any materials therefore no capital. You only need knowledge about the field.
Doing this enables you to raise funds that you can use to buy the required machinery and materials for your tech company. While doing this, it is important to also consider doing some basic courses that will teach you the basics of the business and will be very valuable when selecting your tech team.
Find a Co-Founder
What’s a tech company without co-founders? Finding a co-founder for your tech startup is a big step. Especially if you are not a technical person. There have been many tech startups founded by non technical people that have been able to succeed because of partnerships with co-founders.
Having a good co-founder with the same vision will help drive your business and direction. Guy Kawasaki suggests that a co-founder should also have the same commitment to that vision as you. However, your co-founder should be different than you in other areas such as expertise and perspective.
Before you go looking for someone to help you run the business, you need to have a clear idea of what you are looking for in a co-founder. Just because someone is interested in your idea doesn’t necessarily mean that they are right for your startup. You should take a good look at your own strengths and weaknesses and find someone who will offset and compliment them.
Recruit Talent, Better Yet, Find People Who Will Work For Free.
Once you are aware of what your customers want and what you can charge them through the interviews and you have learnt the basics of the business. The next step to starting a tech company is recruitment. You will need to use applications like LinkedIn to find reliable people. Since you will not be giving money, you will need to compromise and give them input into the product and also allow them to do part time jobs if that’s what they want. This will enable you to earn their trust.
Since many tech startups in New York and San Francisco have bright futures, many designers, programmers, and admin assistants will work for equity instead of a paycheck. The famous stories of secretaries that became millionaires by working for Microsoft in its early days are true. With a clear enough vision and direction, you can find followers who are talented enough to help that vision become a reality.
There are other people who don’t even work for your company that may work for free as well. If you are in Silicon Valley, New York, Chicago, San Jose or any other city that have a reputation of successful tech startups, you can sometimes get legal and accounting services for free as well.
In 2014, one of New York’s newest accelerators Grand Central Tech offered free rent in an attempt to gain some attention from Silicon Valley. Several Startups applied and were selected to house their offices at Grand Central Tech without giving up any equity.
“Because of what we’re offering, we’re seeing that a more seasoned group of entrepreneurs are really the ones responding to our value proposition,” said Mr. Bonello. “It’s a very exciting moment for us.” said GC Tech founder Charlie Bonello.
The Vision is Free; the Execution is Work
Once you have a great team, you will need to earn their respect and trust now that you have sold your vision to them. To earn their respect and trust, you will need to find ways to generate business for the company. Be ready to be at the forefront knocking on doors and getting your hands dirty to get business drumming for your company. This will eventually give you a lot of customers and profits will be rolling in consistently.
Beta testing your product early is risky but worth it Beta testing can involve sending the product to beta test sites outside the company for real-world exposure or offering the product for a free trial download over the Internet. Many entrepreneurs make the mistake of waiting until their product is perfect before allowing potential customers to use it. Risking failure is always scary but worth the risk if lessons can be learned.
In conclusion, dot not allow fear or the lack of money prevent you from starting your own company. If you are creative, hardworking and learn how to differentiate yourself from your competitors, it is possible to start without any money and create a successful company that generates a lot of money.