Whenever I meet non-business people, they often ask about how I started my business and how much money I invested initially. Some would like to start business but have no capital to start with, lack of know-how etc.I usually share my story of how I started with no money back in 2001 during the economic downturn.

So this is my story…

Firstly, I never thought of starting a business during my working life. Had a few friends who approached me to start business together but I was never interested. I was an engineer employed by a company and I was working on several projects. I was happy with my life, work etc.

Then one morning in mid-September 1997, while I was on the way to my job site, the head office called me with instruction to report to the office immediately. The boss wanted to see me.

Well, it turned out that I got retrenched together with 7 other colleagues. I had to hand over the project and be off the job site by the end of the month. At that time, I didn’t think too much or get affected by it as I thought I could get another job easily with my qualifications and experience.

To my surprise it took me 4 months before I secured the next job. Worst, it lasted for only 6 months when the project was terminated and the company could not secure other projects. The company ceased operations soon after.

Jobless again for the next 2 months, I was financially broke with mounting credit card dept and liabilities.

The year 2000 was the time I decided that I need to change everything. I wanted to start my own business, even without any know-how. 6 months before I quit, I started to read about starting a business, and learnt about business planning etc.

At the same time, I started to explore what I could offer the market during that time and I found a need I could fill. During the downturn, a lot of people were retrenched because most companies didn’t have much projects to sustain the cost of employees. But they still had existing or new projects to run. I saw their need for project engineers, coordinators, designers etc.

I tendered my resignation in January 2001 after Chinese New Year with little money and mounting debts. Of course some of my friends wondered what the hell I was doing, quitting my job when so many people were jobless during that period in time.

I approached as many companies as I could. Explained to the bosses that I could fill that need at a fraction of what they used to pay with certain conditions that would benefit them and myself. They could cut costs because they didn’t have to employ me full-time and they could still fulfill their project requirements by having someone experienced like me. Of course, I was also able to leverage on my other friends when I couldn’t cope.

I asked my wife to give me 3 years for my business. If unsuccessful, I would go back to being an employee. That’s basically how I started and I am still running my busines today.

Life was tough then…but I survived and I am still alive.

So, in a nutshell, this is how, in my opinion is the best way of how to start a business with no money:

1. Decide what you business you want do (best business to start with is either related to what you are good at ie your current job, or something that you have passion so that you wont throw the towel when things go “south”.
   
   
2. While still on the job, start reading, attending seminars, courses relating to business and of course, join BNI. I wish I had known BNI back then! Personally, BNI is a good platform for new business owners and also for businesses that have been around for many years. It's where new ideas, business contacts can get together.
   
   
3. Most important is put aside some money monthly. Learn as much as you can about cashflow management. Read Robert Kiyosaki’s book “Cashflow” and the business triangle.
   
   
4. Write and re-write your business plan until you can see the clear direction it is pointing towards. Your business plan is one of the most important tools to guide you through what you plan when you go off track every now and then. It happens.
   
   
5. Start to slowly change your spending habits, change your mindset about not having a fixed salary at the end of the month. The faster you can adapt this the easier it gets.
   
   
6. Register your business, design your logo, namecards etc. All the above can and should be done while you are still working in order not to waste time and money.
   
   
7. And finally decideon a date to quit your job and start the business operations.
   

The most difficult period is the first one or two years of the business. Hang in there, things will be okay if you persevere. Keep learning and have constant contacts with business people. Go through the business plan as you go along.

Some important elements of your business that you need to keep an eye on, and to keep constantly building on:

Cashflow
The number one reason many big and small businesses fail is cashflow mismanagement. Learn fast and manage it well…you’ll be okay

Leverage
You can’t do everything yourself. For your business to grow you need to leverage other people’s time and money. OPT, OPM

Sales
No sales means no money. Simple as that. The faster you learn to sell the better chance your business can survive

Marketing
Learn the difference between sales and marketing. Learn the various marketing ways/tools that don’t require money.

Legal
You need to know this as you go along. Government requirements, your contracts and liabilities etc..

Network
This is where you expand by meeting new people, sharing your experiences and building relationships that turn into a source of referrals and leads.

Product/services
You’ll be surprised that this is the least important in business according to business triangle in Robert Kiyosaki's book.