How to Start a Business without Money

Several decades ago, before I got interested in starting businesses, I met a friend who went from being penniless to becoming quite wealthy in a breathtakingly short amount of time. I asked him what the secret of getting rich was.

He said that you should find something that interests you and become an expert. For some reason, he became interested in turquoise and went from knowing nothing to becoming quite knowledgeable about the gem, the various sources, the market, and the players. One thing led to another, opportunities presented themselves and, presto change-o, my friend was showered with dough.

When I started my first business, which was an ice cream company, I had no money, I had no business experience, and I had absolutely no idea how to make ice cream. Five years later, my ice cream was judged to be the best in America by People Magazine. (See April and May 2005 archives of this blog for the whole delicious story.)

What drove the growth of my business was the growth of my knowledge of ice cream. And what drove the growth of my knowledge of ice cream was my love for the stuff.

When you start a business, what must lead the way should be your own interest in or love for whatever it is you want to do. Loving what you do miraculously attracts all the necessary resources, people and opportunities. You definitely don’t need money to start. Bootstrapping will stimulate your creativity and that is worth much more than money anyway.

Besides, money is overrated. I have found through bitter experience that there is always baggage that comes with investors’ money. You take their money and you get their karma too. What may seem like easy money is frequently filled with major headaches and not worth it in the long run. I vastly prefer the freedom and the control that comes with bootstrapping.

But I am also a practical man who like fast-growing businesses. Therefore I have had to take on financial partners of various stripes. I have learned to be VERY fussy about who I partner with. But that is a whole other story.

One more thing: Your passion doesn’t have to be about any particular product or service. For me, my passion is the process – building teams, collaborating with others, wrestling with creative challenges, supplying customers with value, entertaining paradigm-shifting ideas, dreaming of the potential for fast growth, and being socially responsible to all the stakeholders, not to mention Mother Earth. I am passionate about those things, so if all those elements are present, then it doesn’t make a lick of difference if the end-product is ice cream or telecommunications (my second biz and I knew absolutely nothing about telecom either) or whatever.

www.lazyway.net

Comments

[Kamyar Shahmohammadi]

Great article. I am very impressed with your knowldge and common sense (which is not very common by the way).
I think there should be more people like yourself that have the spirit of business.
I absolutly agree. Money is over rated. So are investors.
http://consultancyissues.blogspot.com/

[Kevin F]

I love this post. I spend a lot of time checking out the world of business and enjoy entreprenuership with a passion. I have started a few small ventures on my own and love the idea of bootstrapping. The problem is that you don't reveal any great TRUTHS in the blog that you posted. Maybe you were trying to relay the concept of getting out there and doing it, but as far as relaying the concept of not needing money for a startup there is not one ounce of good information to lead someone in the right direction. If you are going to make a post with that particular title, give it some depth and include something that will prove your original statement.

[Fred]

Next week, if I remember and get around to it, I'll reveal another GREAT TRUTH about this topic. But everyone is different and every circumstance is different so, in actuality, just going out there and doing what you love is THE greatest of truths. Mother Nature then takes care of what you need to progress -- be it money, people, ideas, opportunities, and/or knowledge.

[Ben]

Thanks Fred, wonderful post.

I'm trying building a business doing what I love. Still figuring out how it works, though. My first attempt didn't work out. Probably because of a wrong partner and because I wanted to make things too perfect and missed the big picture.

After that I was reading many many business books. The result: I lost my passion because I was more concerned about having a proper business idea instead of doing what I love.

Now I'm back at square one. I realize that passion is the most important driving factor, everything else has to come later (at least for me. I'm not that kind of entrepreneur who can start a business just because the idea is sound. I need a deeper meaning).

I love games. Of any kind. And I believe games can do wonderful things. So this is my motivation and what I want to give.

The next step is the problem. Also, when should I follow my intuition and when my logical mind?

Fred, please keep your postings coming. They are very inspiring. :)

[Michael Lackman]

I worked for Fred at his telecommunications company and have been quietly following his blogs. This one especially grabbed me because it speaks to his passion and how his passion lies at the basis of all that he does. But his passion is also molded by his intelligence and his openess. Fred has very deeply and strongly held beliefs that shape his actions but he is also totally open to suggestions and guidance in those areas of his business that are outside of his expertise. He knows his strengths and he acknowledges his weaknesses. These qualities plus his astounding tenaciousness - bordering on obstinacy - have been central in his many business successes, IMHO. When Fred believes passionately in an idea, he never gives up ... even when most business books and MBA's would advise folding his hand. This has allowed Fred to pull some spectacular successes out of impossible odds. Anyway, these are just my observations having worked for Fred. Enjoy.

[Rick Shaddock]

Fred was my best boss of all time. I also had the pleasure of working for Fred, and Michael. He is a model of an enlightened business leader, and showed he really cared for his employees. He offered more than just good pay and interesting work. His company offered discounts on state of the art health care procedures and products, such as group stress management meditation sessions and herbal anti-oxidants. Company meetings were entertaining as well as informative because of Fred's quick wit and sense of humor. We wanted to work harder for him, although he wanted us to stay rested and alert. If only the Board listened to him more. Fred created a company that improved many lives, and sets an example for ideal employee development.

[smarcusaurelius]

Thanks for the encouraging blog post. Perhaps you could elaborate on your definition of "bootstrapping"?

[Craig Neilson]

I was very interested to stumble on your website and related sites concerning "How to find your Calling". But what I find rather frustrating and to some extent puzzling is why so many of these type of sites and ideas only seem to come out of America. I, as you can see from my email address live and work in the Uk where there seems a limited response to such areas. Now if you can prove me wrong then I would be very interested in finding them. But more importantly, maybe you could tell me why this should apply.

[Jilliana]

I am starting a business and have choosen not to take out loans or a "partner' I want this to be me and about what I can do ! cause I know I can. I could do it faster with a loan or whatever,but than it would'nt be mine!! this is just the added spunk I need to continue !!

[Doreen Ruggiero]

I just want a job working out of my home, I have no car for sales work, know bookkeeping, customer service and lots of office duties, even setting-up-manual-file systems, very organized with organizing office and home experience, once had a cleaning business, and 63 look 50 ;whatever, that has to do with anything. I have exceptional gift to gab, communication both written and verbal skill/talent---I type about 48 wpm---I want to home-base sell or bookkeeping or any work I am qualified to do---not an opportunity where I shell money out---I want to just have a home-based job and get a regular weekly pay-check. ANY IDEAS----AS A LAST RESORT I WANT TO FIND A BUSINESS PARTNER FOR SHARING MARKETING IDEAS, MOTIVATION AND HELPS SELL IT---MOSTLY I WANT A J-O-B---CAN YOU HELP, DESPARATE FOR $$$$$$$---THANK-YOU FOR ALL YOU CAN DO

[Francisco Gonzalez Velasco]

Hi Doreen,

I suggest you suscribing for free to Joe Vitale & Joel Christopher recorded teleseminar series: "How To Make Money Online When You`re New, Don`t Have a Product, Or A List, or Any Money Even When You're Just Starting From Scratch"
There you'll find a detailed 30 days plan to earn money.
I include the plan URL (you'll need Real Player, that you can get for free):
www.successaccess.com/audio/Joe-Joel2e.ram
from minute 15 to the end.
The end of the plan is at:
www.successaccess.com/audio/Joe-Joel2f.ram

If after listening this plan you want to get for free the whole series and many other free resources, let me know and I'll help you to subscribe.

Cheers

Francisco

[sherry mccowan]

I am looking for gift money or angel investors or investor to invest in my used furniture stor in battle creek michgian. their a big dmand in this city for one. I have completed college. My husband passsed away three years ago and I would like to start my own business. I have researched it and their is a big demand in this city

[deepak]

i want to do business.but i have no financial suppot.i can do hard work for business.plz help me

hey!

You are makeing money off of people like me. Who is the stupid one "me"!!!

[Vee]

I'm so inspired by your story. I'm good at body massage. The problem, I HAVE NO MONEY to start a business. I'm vey ambitious but doen't know how & when to make my dreams come true. Anyway, thank you.

[vijay]

I want to earn some money without pay anything But after earn u can cut from my account, If there is any plan for that kind I really want to join that

[kingsley baker]

i have an amazing idea nad need ways to start as i have no money at the moment#

[AJ]

Agian, this article does NOT tell you how to start a business without money. It tells you that if you have the passion for something and you set your mind to it you could accomplish your goal. But either you need money or a nice business plan to get a loan from a bank. Unless theres another way thats clearly left out of the article. Either way you have to work hard in the end to accomplish your goal.

The content in the article is good its the title thats misleading.

This is nothing new. If you want to be successful start of by reading "The Magic of Thinking Big". The reviews on amazon alone will tell you the value of the book.

[byron Wilson]

this article meant a lot to me. now i really understand what it means to start a business

[Francine McGahen]

I need to work. I have a disabled daughter and can not work on the books. I can not do this by myself with only SSI and child support. I need to work at home with no start up fees. Anything you say I would live to hear. If you can help please e-mail
me at fran@bontheweb.net.

Thank you every much
Francine McGahen

[Danny]

It has been a dream of mine to open a horse stable and rehabitation center. I've been around horses (racehorses) for thirty years and worked with a veterinarian for about five years. There are many ways to make money with a stable you have stall rent,hay sales,small tack shop,swimming pool for horses, aqua tread,turnout pins and many other ways. All I need is cash to get this started. We are very short on quality stables in this area. I could fill a 50 stall barn before it opened with a good chance to fill a 100 stalls at $75.00 per stall horse owner does everything and if you have full care horses that $275.00 to $500.00 each month. A person can make a fair living doing this.

[Nate]

I don't know how to start my own business for a fitness center. I am one of the most extreme personal trainers in Atlanta, Ga. And everyone has a big gym in my city except for me. I don't have a training facility for my loyal 50 clients. I know I can gross over $150,000 a year, but I dont have the help right now. I am dead broke and dont have a dime to my name. I have just lost everything from a divorce. I do not want to lose this what I have left in this dream I have....Please help me or show me the way to do this....Or contact an investor and we can meet and I can show him/her my plans on becoming the big break of my city. e-mail me at natejacks@atlantarugby.com

[Lulubelle]

I am just another person to look at starting a business, but don't have the capital! It's sad really, because I have some great ideas, this place I live in has so many potentials and is booming...Our walmart makes mega money, its a new store, but business is non stop here because, its just booming..If You have any suggestions for me..leave me an email at Lilafields@hotmail.com Thanks

[Lulubelle]

and thanks for the easy access to posting here! its great

[Mary]

Thanks so much for this article.

This is EXACTLY the way I feel as well.

What is "bootstrapping"??? Where can I find more information?

I have had an interest, which has become my passion for the last 15 years. I have studied it, tested it inside, outside and every other way. I can honestly say that I have become an expert in this.
I really and truly love it!!

OK, most people are not going to like this, but here goes :

Roulette!!
It has been said that Roulette cannot be beaten. (However, I remember reading about one man in the 1960's, who did the same as I've been doing - studying it relentlessly until he "cracked" it. He became a multi-millionaire off casinos. He was finally banned from all casinos in Monte Carlo and took his secret to the grave with him).

Well, I believe I have finally found the way to beat Roulette in online casinos.
I have tried it in 8 different casinos, multiple times each day. (Play for "fun money"). I've actually tried it in 100's of online casinos, but I've found the very best 8.
Result? 98% win rate!!
The very occasional loss stops me at my stop-loss, which I make up within 36 hours.

OK, so why am I not doing this with real money?
Quite simply, because I don't have the funds, being US Dollars. I need at least $1000 to start.
In my country, that is equal to 5 months salary in the area we live!!

So, I have the knowledge, the plan, the discipline, the passion and "the secret" .... how do I go about getting the funds required?

Any suggestions?

If anyone reading this has any suggestions, please feel free to contact me
casamer@imaginet.co.za

Please note, however, I will not share my "secret".

Thanks,

Mary.