Transcribed article based on the video above.
There are several ways to build a company with no capital.
1. The first is equity. While you may not value that equity because you just started out you can use it as an asset to secure talent. You can find a technical co-founder and offer him an ownership stake in your company, you can create an options pool for potential hires. All of this will help you offset your costs while you build your business.
2. Secure an asset. Let’s say you are producing a film. If you can attach a big named celebrity to your project, that is an asset. If you can attach Tom Cruise to your script, there are going to be plenty of people that want to finance your film because you did one of the hardest things, which is secure the asset.
3. Sell the product before you’ve built it. This is my personal favorite because it will save you a lot of time. If someone is not willing to build your imaginary product, it probably isn’t worth building.
While I recommend securing capital for starting a business, if that isn’t an option for you, these are three ways you can start a business with no capital.
Amir Mir is the CEO of LunchMoney. You can read more of his posts here on Docstoc or follow him on Twitter.