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2024 was a year filled with achievements for some and challenges for others. For those who achieved their objectives, we thank God. For those who didn’t, we try again. I’ve been reflecting on this topic and wanted to write about it at the end of last year. However, I decided to postpone it to this new year, especially for those considering starting a business.
Recently, I had an enlightening discussion with one of the businesspeople I deeply respect. We explored the question: Is starting a business without capital possible? His response was profound and thought-provoking: “Indeed, it is possible, depending on the context you take it.”
He elaborated that while money is essential in starting a business, it’s often overstated as the sole requirement. This mindset is reminiscent of our primary school days when we were asked about obstacles to entrepreneurship, and the common answer was, “lack of capital.” He used a practical example to illustrate his point.
He proposed a business idea and said, “Derrick, let’s discuss this.” We dove into the details, and by the end of the discussion, we realized the idea would need about $10,000 to implement. Then he commented, “Had we started with the notion that this business needed $10,000—money you don’t currently have—we wouldn’t have discussed the depth of the idea.” His caution was clear: the most important elements in starting any business are the idea and the strategy. Money is secondary; it only complements these foundational elements.
He went further to explain that even if someone is given a large sum of money without a clear business idea or execution strategy, that money is likely to be wasted. In his view—a view I now share—an idea and a well-thought-out strategy are paramount. Money should be mentioned last, as it merely enhances the process.
So, does this mean starting a business without capital is genuinely possible? To me, the answer lies in perspective.
Starting without money doesn’t mean starting without resources. Creativity, networking, knowledge, and skills are all valuable resources that can substitute for capital at the early stages. For example:
- Bartering Services or Skills: Offer your skills in exchange for services or products you need.
- Leverage Relationships: Build partnerships with people who share your vision and may have the resources you lack.
- Utilize Free or Low-Cost Tools: Use free platforms, tools, and resources to get started.
- Bootstrap: Start small, with what you have, and grow incrementally.
At the end of the year, I found myself embracing this understanding. While capital is undoubtedly a key factor, it is not the foundation of a successful business. A strong idea, a clear vision, and a strategic approach are what truly lay the groundwork.
So, what do you think? Is it possible to start a business without capital? Let’s continue this conversation and explore how we can turn ideas into reality, regardless of financial constraints.
About the author
Dr. Jjuuko Derrick, is a pharmacist with a keen business acumen. Having dedicated much of his career to engaging with business owners and employees, he brings a unique blend of pharmaceutical expertise and business insight to the table. As an entrepreneur himself, he is passionately committed to leveraging his technical skills and entrepreneurial experience to foster the growth and development of multiple businesses. Driven by a mission to make a meaningful contribution to the business landscape, he stands ready to empower entrepreneurs with the knowledge and tools they need to thrive.
