Many people desire to start a business and think they need to start a business at the same level as any other business or past employer.
They believe that a successful business will have the same offices, personnel, and most importantly customers.
Getting rid of that idea is how one learns how to start a small business without taking out a small business loan.
The mindset a start-up entrepreneur should have is like starting a home.
Many late teens and twenty year-olds feel that they need to furnish their first homes or apartments just like their parents and grandparents.
They do not realize that it took decades to have all their parents and grandparents have.
They should start with the bare minimums and with used items.
That means a business could start at the kitchen table with office supplies their household already has.
Storage could be just like the college years with shelving made out of bricks and boards.
Some businesses may need specialized equipment to conduct business, like in the trades.
If possible rent the equipment as needed.
If purchasing is the only option buy used and see if a deal could be worked.
Perhaps a bartering situation could be agreed upon, so an aspiring entrepreneur does not have to spend cash.
Two of the best things someone who desires to start their own business can do ahead of time are to build a savings and repair their credit.
Having a good savings account will help a business a lot.
It is highly suggested that a person save two years worth of living expenses.
This way one does not have to worry about housing, car payments, or utilities.
It allows a person to focus on business and keep any profits returning into the business to grow.
Also, the importance of personal credit cannot be understated.
When a business is starting it will not have any credit history.
Most creditors will then look at the owner's personal credit.
Even after the business is established creditors will want to know about the owner's credit history.
Also, know that as a business owner getting personal credit is not easy.
As an employee income is easily verifiable, but as a business owner it is not, especially if one is living on dividends from the business.
Having good credit will help one get personal credit when needed.
When seeking a small business loan lenders will require a business plan.
Just because a person is starting a business without a loan does not mean they should not develop a business plan.
A business plan when properly done can guide a business to success.
Things are very fluid in entrepreneurship and having a map will help one stay on course.
It will keep a business from seeking opportunities that are profit-less.