Many people stuck in the drudgery of a nine-to-five routine or becoming increasingly frustrated with the corporate rat race often dream of becoming their own boss. Starting a new business is an aspiration that often remains a fantasy.
Table of Contents
Some, though, take the plunge and reap the rewards of job satisfaction and personal fulfilment that running your own business can bring. Taking the first step in starting a new business is typically the most difficult.
One of the main problems for the would-be entrepreneur is finding the cash to kickstart the venture. You can find out here what you need to know about starting a new business in 2024 if you have no capital.
Why 2024 Could Be the Ideal Time for Starting a New Business
The dawn of a new year is the time we look to the future. And it could be the perfect time to seize the moment and launch your own business. This may seem a daunting prospect in an era of rising costs and financial fluctuations but entrepreneurs often thrive in tough times.
And 2024 could be the right time to embark on your startup journey. Breakthrough technologies and predicted easing of inflation this year are expected to drive the creation of 342,000 new small businesses by 2025.
Few individuals have ready cash to back an idea for a product or service they believe there’s a demand for. But you don’t have to let that obstacle prevent you from starting your own business in 2024. Setting up a business in the UK is relatively simple and may come with limited costs unless you need a lot of equipment.
Businesses Ideas for 2024
Some types of businesses generally have high profit margins or a robust return on investment. Growth sectors for new businesses in 2024 are expected to include ecommerce, green technology, and pop-up retail.
Other small businesses that could be viable this year include:
- IT services – the Internet of Things has created unparalleled demand for entrepreneurs with the skills to troubleshoot technical issues.
- Social media influencing – all you need is a laptop and a keen eye for what’s trending on social media.
- Digital marketing – content creation, graphic design, web design, and coding.
- Accounting and book-keeping – low overheads once you have the necessary software.
- Online tutoring – a market expected to achieve massive growth until 2030.
- Cleaning services – low equipment costs and no physical location needed.
Whatever type of business you decide on, each startup journey is unique, so you need to do market research and come up with an effective business plan. This could be critical if your new business needs financing.
Making a Business Plan
Your business plan should explain how you intend to achieve your business objectives.
It should also include:
- Analysis of your potential customers and market, supported by market research.
- A sales and marketing plan.
- Potential problems, such as no capital, and how you’ll resolve them.
Cash Flow Forecast
Besides a business plan, you also need a cash flow forecast for at least the first 12 months of your business.
This should include:
- Potential income from the sale of products or provision of services.
- Outgoings such as rental or premises, buying supplies, and marketing costs.
How to Fund Your New Business with a Startup Loan
With some types of businesses, you may be able to leverage your skills to make money without spending any. Generally, though, financial support is needed to start a new business.
With little or no trading history, it can be difficult for a fledgeling business to access funding from a mainstream lender such as a bank. Traditional lenders favour businesses that are already established as a going concern.
The solution lies in a startup business loan – tailored financing for businesses that have just started trading. Startup loans are offered by specialist brokers or alternative online lenders to fund either a new business or one that’s been trading for just a few years.
This financing can either be secured against an asset, such as your house, or unsecured, with no collateral required. Because of the higher risk to the lender, startup loans tend to have higher interest rates than conventional business loans, especially with unsecured borrowing.
So once your business has become firmly established, you may want to look for refinancing at lower interest rates.
How to Get a Business Loan if You Have Bad Credit
Before approving a startup business loan, lenders will usually want to see your business plan and cash flow forecast. They’ll also run a personal credit check on you, which could be an issue if you have a poor credit score.
Your credit rating reflects the level of risk in lending your new business money, and many budding entrepreneurs assume they won’t get a loan if they have bad credit. However, this isn’t necessarily the case. The problem can be overcome if you know how to start a business with no money and bad credit.
While a good personal credit history makes it easier to get an unsecured loan, a secured loan can provide an option in cases of poor credit, although Interest rates will likely be higher.
And you can improve your chances of getting a better financing deal in the future if you work to rebuild your credit score. You can do this by paying off old debt and managing new debt responsibly. This will raise your credit score, making you eligible for an unsecured loan with better terms.
Starting A New Business To Kickstart A Better Future
Lack of capital needn’t be a barrier to starting a business, even if you have bad credit. Entrepreneurial aspirations in 2024 appear to be as resilient as ever, with small business growth outpacing larger companies.
According to payment processing giant Mastercard, the number of UK micro businesses (those employing fewer than 10 people) has grown every year in the last decade.
Now you know how to get the necessary funding for starting a new business without capital, you’re well placed to take the plunge in 2024 and reap the benefits of being your own boss – flexibility, independence, and a sense of fulfilment.
