If you think that you need capital in order to start that small business of yours, think again. Startup money is great, but it also makes you think in sloppy ways. A shortage of available cash, on the other hand, forces you to think creatively to achieve your business goals and helps you navigate around pitfalls, which stand between you and success.

Here are 3 reasons why having no dough in the startup phase can be used to your advantage.

1. Become A Hardened Businessperson
It’s a basic law of evolution – when your surroundings are arduous, you learn to adapt in order to survive. You can’t afford to be lazy and complacent. And so, you learn to become shrewd, resourceful and clever. You begin to think outside the box for solutions to your problems. You learn the art of taking calculated risks.

This process of struggle can be very useful in helping to dramatically sharpen your value proposition and learn skills, which will help you outmaneuver your more cashed-up, lazy, competition.

2. Be Committed to Do-It-Yourself Tactics.
To start your business with no or little funding, you will need to think about all of the tasks that you can do without hiring others. Keeping your expenses low does not happen by accident, but through consistent and sometimes tedious efforts to handle matters on your own. If you can’t afford a CPA, then learn how to use open source budget programs. Want a website? Then go to one of a number of sites that allow you to use their templates and establish a basic web presence for free, like Google Sites, Yola and WordPress.

3. Stop Being A Copycat
When starting a business, there’s a huge temptation to emulate your competitors. You may check out their websites to get “inspiration” for your own web copy. Or you look at the way they package their offerings and make yours a tad different – usually by claiming that yours is a tad better while making it a bit cheaper.

And if you have money to burn, you can pretty much copy their business model, marketing and offering – and purchase everything you need to launch your own version of their business.

Or so it seems on the surface.

Look deeper, and you’ll see problems with this “rich guy buying his way into a marketplace” approach. The main problem is that the things you can easily replicate are rarely what gives your competitors a competitive advantage over you.

And the things you can’t easily rip off – like tested and faultless processes, culture, customer relationships style, company philosophy and IP – sit at the very heart of your competitors’ businesses – and are instrumental in their success.

Which means that if you try to buy your way into business by copying your competitors, you’ll probably end up spending a lot of money on things that don’t give you much power in the marketplace.

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