Building a business from the ground is often very difficult. Building a business without the initial cash flow from investors can be even harder. However, starting a company without the weight of investors can yield many benefits that outweigh the cons.
Benefits of starting a business without investors
- You have complete control of your destiny. It allows you to understand your capabilities and shortcomings, which you can see the direct result of success or failure.
- One of the most intimidating things about starting a new business is the risk that it is going to fail. However, if you are solely responsible for your business, you may be more inclined to work harder to achieve your dreams.
- You don’t have to compromise with shareholders or a board of directors. When investors’ motivations are different from your own, it can cause difficulties and tension with decision-making. Investors can also add more pressure financially, mentally and emotionally.
- You have the freedom to quickly change direction as needed. This enables you to quickly adapt to the constantly changing market.
How to start a business without investors
Invest your free time into your side hustle
Since starting a business without investors can leave you strapped for financing, it may be wise to keep your day job while you develop your new business.
Learn how to take on every job title and responsibility
Growing a business without investors comes with additional responsibility and pressure since you are likely your only employee. In the beginning, you may not have the capital to hire employees, causing you to take on every job title and responsibility by yourself.
You learn to become your own lawyer, accountant, secretary, etc., and you run every department until you acquire enough money from your sales to hire talented and specialized personnel.
Make the necessary sacrifices to grow your business
Your business, like a baby, is going to demand a lot of time and attention. You must be willing to make sacrifices to free up your time. The more time you can free up, the more you can work on your startup and expedite the next phase of your business.
Hire the right individuals (when you can afford it)
When you are finally in a position to scale your business, you should invest in the right individuals. The people you hire should be specialists who believe in your vision. That finding the right employee is like finding the right investor.
You need to find those who share in your vision and your growth, who believe in what you’re doing and the message you are spreading.
Bring on team members slowly, only hire when necessary. It is important to focus on building business savings.
Don’t forget about finances
Through the entire startup process, keep your revenue and finances in mind. Since you won’t have investors to support you in times of need, ensure your company is always in the green.
Tips for managing expectations
One of the hardest lessons is to have patience. As an up-and-coming entrepreneur, you may want immediate success, but this is not a realistic expectation. Patience can allow you to see the difference between short- and long-term gains, as well as to manage your expectations.
Another important quality to attain is self-control. A high level of self-control allows you to make fewer impulsive and emotionally driven decisions. It can empower you to make decisions without fear, keeping you calm in situations of high stress, because you have the knowledge and faith that everything will work itself out in due time.
Investors help, but ultimately you are in debt to them. You can do this on your own if you believe in yourself and invest the most precious thing: time.