Before deciding to start a business with a minimum of investment, you need to clearly understand how it works, what it holds on to, what risks the entrepreneur bears and what, ultimately, you will have to pay for the opportunity to run a business with virtually no investment.
Even the classics of economic theory deduced the formula that two factors are necessary for entrepreneurial activity – labor and capital. Later, a third one was added to them – intellectual or innovative, which should be understood not only as the latest developments, but also new ideas in general. Given that a business without investment a priori does not imply significant capital, everything here is based on two pillars:
The hard work of the entrepreneur and his family members – they will have to work hard and conscientiously. A non-trivial idea for a business without investments, which, due to the limited life span, will need constant improvements.
Taking these points into account, a novice entrepreneur should clearly realize that the matter is without investments: a) will require his constant and irregular participation in all processes; b) will not let him relax and rest on his laurels for a second, since rapidly aging ideas always need in the updates. Taking into account the intricacies of a business without investments, its pros and cons are formed.
In general, the first plus is in the name itself – “no money”, ie money is not needed to start an enterprise: no need to save, no need to borrow from relatives or acquaintances, especially no need to go to the bank.
Moreover, there are not only “entry” barriers, but also “exit” barriers – it can be minimized almost instantly and financially painlessly.
The third positive point is the quick return. If in classical businesses, from the time of investment to the time of return on payback, it takes from 6-9 months to 2-3 years, then here you can start making a profit from the first or second month.
One of the main disadvantages is instability. A concept or “trick” that worked yesterday and brings a good result may already be outdated and unclaimed today. It is extremely difficult to rely on the fact that the initial idea can be exploited for three to five years or more, and therefore you should be prepared for constant changes.