Starting a business as an unemployed seems to be a daunting move. Mind gripped with lots of fears does not let you feel confident about your business idea despite it being amazing. If you are jobless and already fed up of being in the rut of 9 to 5 job, workplace politics, insecurity, filthy work atmosphere and above all having no satisfaction, you can think of starting a business.
If you are looking to start a business, you may have several ideas, but the process of working them upon boils down to funds you have. In addition to savings, you can fund your business with short term loans for the unemployed, but you must have a backup to pay off the debt in case your business fails before getting off ground.
Uncertainty is always there even if you are completely sure that your business will become successful and therefore experts suggest having a full-time job as well unless there seems growth. However, it is not necessary because some kinds of businesses require your full attention. It depends on your individual circumstances.
Ways for kicking off a business when you are unemployed
Starting your own business has innumerable benefits from flexibility to satisfaction, but kicking off a business still takes a lot of vigour. Here are the ways to start a business successfully:
- Get skills
Though you have a great business idea, you may still need to learn some skills to handle it properly. For instance, if you are expert at cooking, it is likely that it is not up to the standard of the latest trends. It is vital to get training from a professional before launching a business. It will improve the chances of the success of your business.
Take a sheet and a pen and sit down to note what skills you current have. Brainstorm how these skills you can utilise for your business growth. Then, think about skills you need but you do not have, For instance, to run a cooking business, you will need to invest in digital marketing. If you do not know an abc or know just little basics about the marketing, you will need to enrol in a marketing course. Yes, you can hire a marketer, but it may not be possible at such a stage of your business.
- Test your business idea
This will tell you how likely you will be successful down the line. A catering business is not easy to handle especially when you receive a large order. Design a menu and then invite people to try your food. Get feedback from them to know whether or not they liked it, and what improvements they have suggested. If they all have admired your recipe, you are all set to go. However, you are still not ready to launch your business.
Next step is to cook for school or church fundraisers to see if you manage to carry out large orders in time. Remember that whether you are running a restaurants or a bakery shop that distributes its products in nearby shops, time is essence. Everything has to be done quickly, perfectly and in time.
Competition analysis is a part of testing your business. Try to know the prices of their products. Is it possible to deliver higher quality at reduced prices? You will have to research the market to create your own space. Some of your competitors may have been on the market for years. It is going to be arduous to give them a run for their money. To enter the competition, you should find out a loophole. Figure out what your competitors are not offering. Leverage it to make your product better than them.
For instance, if you are running a restaurant, you may have some dishes on your menu that your competitors do not offer. This will help attract even those people who like those dishes.
- Make the most of your existing assets
As you are starting your business with little money, it is vital to be strategic about assets utilisation. For instance, if you are into cooking business, you can use your own kitchen instead of renting a space. As far as it is about ingredients, you can use your garage to keep them provided they do not need refrigeration.
If you need a vehicle to deliver food to other shops or people, use your private car to do so. Once your business dhows some progress, you can buy a van to deliver your goods. As of now, you should try to make the most of your available space.
- Take financial help
Because you are starting your business from scratch, you will likely need some money. Since you have little savings, it may be not sufficient for your business. Before you consult an online lender, consider seeking help from your family and friends. If you do not need a lot of money, they will likely help you. However, you must pay back as otherwise it will affect your relationship. You may need their help in the future as well and then nobody will go to bat for you.
If you have been refused, online lenders are the last resort. The most common loan available to you is a payday loans for the unemployed on benefits. These loans are quite expensive because lender cannot be so sure about your repaying capacity. You do not have a stable job and your business has not reached the profitability state.
If you have decided to borrow money from an online lender, analyse your repaying capacity. Do proper research so you do not fall into the trap of those who charge outrageously high interest rates.
It is suggested having a backup plan for the repayment. As a lump sum payment is made to settle the debt, be sure that you have enough cash coming in so you do not find it hard to repay it. Otherwise, you will end up borrowing more and more money and this may result in a debt trap.
- Promote your business
You have done all preliminary steps and now you are to tell people about your business. People can know about your business only with the help of marketing. You cannot spend on expensive marketing methods like PPC as you do not have enough money.
However, it is imperative to invest in digital marketing. Get some leaflets printed and distribute them to people or if that is not possible you should hang it on a signboard on a busy street corner. Distribution works better outside the restaurant, schools and office complexes.
Create a logo and a website not for just attracting people but for getting an identity from people. They should immediately understand it is you as they see your logo on any billboard or a signboard. Create a social media account so you can keep sending feeds to your followers.
Instagram will be the best platform for your cooking business. You can promote your dishes over there to attract people. However, before doing that, you must know who your target audience is and whic social media site they have been using. There are a few other free marketing methods you should focus on to attract your users’ attention.
The bottom line
Starting a business when you are jobless can be daunting but the fact is that it is still possible. You need to be strategically decide on ways to kick off your business. The tips mentioned above can help running it even if you have little funds.