It’s no news that California is one of the best states to start a business in the United States.
A lot of people prefer to start a business in California because of its economic climate, its large population which in turn brings about networking opportunities, business encouraging environment, and above all, it is the home to so many successful businesses.
Starting a business requires a lot of hard work, critics, thinking, and maybe sleepless nights to execute the plan, and it can actually be more frustrating if you have no capital to start.
I have come to realize that lack of capital is what actually keeps a lot of individuals from owning a business of their own.
Come to think of it, I have met a lot of people with excellent business ideas but with no business because of the lack of capital.
If you wish to learn how to start a business in California with no money, this guide will help.
In this article, you will learn about how to start a business in California with no money, and some of the best business ideas you can start in California with no money.
Businesses You Can Start In California With No Money
I will say it is not all business you can start without money but it is easier to start a business in California with no money by offering service or selling your skill(s) to the target market.
Although individuals can also choose to sell goods. Below are the businesses you can start in California with no money.
- Offer or render service
- Buy and sell goods
1. Offer Or Render Service
This simply means selling the skills you have learned or have acquired to the public and get paid for it.
What do I mean by this? A lot of people have one or more skill(s) they probably learned when they were younger and have become professionals at it.
Did you know you can start a business with that skill? Yes, you can, and the beautiful part of it is that you can start with no money.
Take for instance you are very good at electronics repair. What move can you make with this skill without money in your pocket but will definitely bring money to your pocket?
Obviously, you can render your service to the public, you inform friends, family, and surrounding people that you can repair electrical gadgets at a named price.
It is also very okay, to promote your business through your social media handles. With this process, you will eventually be able to save enough money to run the business the big way.
Well, this is just a brush-up, there are some formalities, considerations, and steps you need to follow in order for your business to be successful and legally recognized.
Steps Needed To Start A Service Business With No Money In California
Below I will be sharing with you some basic steps needed to start a business by rendering service in California, with no money.
1. Have A Solid Business Idea
A good business idea is the starting point to owning a business in California. This is because there is no business without an idea.
You can not just wake one morning and start a business with absolutely nothing in mind, it is not possible.
It is important you have a solid business idea you want to venture into. You must have a particular service you want to render.
After you have made your decision on the type of business you want to settle on, it is time to proceed to draft a business plan.
2. Have A Business Plan
Obviously, you must have dug a little about the business you want to start and must have gathered and analyzed some important facts and factors about the business in California to draft your plan.
This takes a lot of creative thinking, although you might be starting small, the aim Is to grow fast and large. So you have to strategize a means to break into the market and gaining a lot of audiences.
3. Choose A Name
At this point, it is time to give your business a name, so you will be able to register your business with the state of California. This is less of a difficult task, I will say. Just ensure you choose a unique name for your business.
4. Decide On Your Business Structure
Decide on the type of business structure you want. I will strongly advise you to start your business as a sole proprietor and can later change to an LLC or corporation once you have started making profits.
In California, a sole proprietorship does not have to register as a business with the state, meaning that you do not have to pay the fees for registering your business as you would with any other kind of business.
5. Get A Location For Your Business
You need a space or a location for your business, this enables your customers to have easy access to you. In case you do not have money to rent a shop or space, you can start by using an empty room in your house or any place available and convenient.
6. Get The Necessary License And Permit
This is very important. You will need to apply for a license with the state of California and in the city where you reside.
For instance, you have to register with the state and federal government to get an employer’s identification number before you can start a business in California.
You can wait till you have made enough profit that will cover the expenses for license and permit before you get it done.
To get more information about license and business permit. You can verify with the Small Business Administration, CalGold (California Government Online to Desktops), Department of Consumer Affairs and CalBIS (California Business Investment Services).
7. Set A Price
This is an important aspect I should have mentioned earlier. You need to set a business price, that must be fixed and affordable for your customers.
8. Start Your Business
After all the above steps are completed, what else are you waiting for? You can now proceed to start your business and offers service to your customers.
Also, it is important to market and promotes your business to reach out to more people, which will, in turn, increase sales and yield profit.
9. Grow Your Business
At this point, the need to promote and create awareness will arise. There are certain ways this can be done, you can inform family and friends, neighbors, and surrounding people.
You can also open a page on Facebook and market your business on sites like Craigslist, WhatsApp, and many others.
How To Get A Loan For Your Business
Selling goods is not as easy as rendering service to the public, why? Because you will need a start-up capital to stock your shop.
If you are very much interested in meeting the need of your immediate environment by selling goods, but you have no money to start the business, you can opt for a loan.
You can get a loan from:
1. Family And Friends
You can get a loan from your family and friends. For this kind of loan, you may not need any documents or criteria, apart from a specific date to pay back because you are pretty much familiar with them.
2. Local Banks:
You can get a loan from a local bank in California, but this obviously have a requirement to meet. Individuals who do not meet the requirements can not get a loan.
The California government also offers loans to small businesses in the state. So you can try applying for a government loan to fund your business.
The criteria and Requirements may differ due to your business structure and type of business. You should check the requirements before applying for any loan.