How To Start a Business with No Money in 6 Steps

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Entrepreneurs know that starting a small business often begins with a great idea, followed by the need for the funds to bring it to life. While launching a startup might require a more substantial investment, it’s possible to bring a business idea to life on a much smaller budget. 

Starting a business with no money or limited funds may seem daunting, but it can be done with the right planning. 

Can you start a business with no money? 

Starting a business with no money is not unheard of. Although it can be an important part of the business startup equation, funding alone does not guarantee success. A fledgling company may receive millions of dollars in funding from investors, only to close shop 18 months later, while a business that begins in someone’s home might become a long-term success story. 

There are other factors that could influence success when attempting to start a small business with no money. Things like sweat equity, experience, and time may prove invaluable for entrepreneurs who are committed to taking their business idea off the page and transforming it into reality. 

6 steps to starting a business with little or no money 

Starting a new business with little or no money includes developing a business plan and a strategy for growth that isn’t reliant on substantial amounts of funding. Choosing the right business idea at the outset may also make a difference, as some businesses may be less costly to launch than others. 

Here’s what’s you may want to keep in mind when considering how to start a small business with no money. 

1. Settle on a business idea

Starting a small business when funds are limited means first assessing which ideas are practical and have the most potential. The best options for a new business may include ones that: 

• Have low startup costs and consistent, recurring expenses 

• Can be done from home, eliminating the need to lease premises 

• Are highly marketable and target an in-demand niche 

Analyzing social media might help with identifying trends and finding gaps in the market that are underserved. An entrepreneur may also want to consider whether it makes sense to start a product-based or service-based business. 

Product-based businesses require something tangible to sell, which may be physical or digital. Physical products may cost more to produce than digital ones. Service-based businesses, meanwhile, may require business owners to have nothing other than a specific skill that someone else is willing to pay for. 

2. Do some market research

Some form of market research may help to determine whether a small business idea is viable. It helps to understand your target audience’s interests, their budget, and the likely longevity of a product or service. 

Here are some ways to conduct market research on a limited budget: 

• Social media: Social media could help with getting instant feedback on business ideas. Entrepreneurs may ask their followers what types of business products or services they’d love to have or use a simple poll to gauge interest in their ideas. 

• Browse forums: Online forums may also shed insights on the potential market for a product and the pain points of potential customers. These online spaces often include comment threads of people seeking answers to questions that might spark some ideas for businesses to start. 

• Friends and family: Friends and family members may be willing to offer their two cents on what might be a viable business. They might also critique an existing idea for a business service or product to help point out potential flaws or obstacles. 

Joining a local small business owners’ meetup or online mastermind group is another possibility for generating ideas. These groups may also be helpful for building a network as a small business owner. 

3. Write a business plan

A written business plan could serve as a guidebook for moving through the different stages of starting and growing a business. A business plan may also be a prerequisite for applying for funding, as lenders will want to take a deeper dive into financial estimates and operations. 

The main elements of a business plan include: 

• An executive summary 

• Company description 

• Market analysis 

• Description of company organization and management 

• Details about the business’s products or services 

• An overview of the company’s marketing and sales strategy 

• Financial projections 

The more complex the business, the more detailed this document will often be. Entrepreneurs who are struggling to write a business plan may get help from their local Small Business Administration office. 

4. Name the business

Naming a business is an important step, as it will help determine the direction for branding and marketing. Here are some considerations for naming a business: 

• Is the name similar to a competitor’s? 

• Is it easy to spell and pronounce? 

• Is it memorable? 

• Does the name reflect the business’ mission, purpose, and products/services? 

State guidelines could influence the choice of business name. Depending on the type of business structure, entrepreneurs may need to register using a “doing business as” or DBA name. Checking state and local laws can shed light on when registration is required and when it’s necessary to choose a DBA name. Consider consulting a legal professional for advice on business registration and any other relevant structure questions you may have as you begin to grow your company.  

The availability of a domain name for a website and/or social media accounts may also play a factor when starting a business. Choosing a seemingly perfect name might lead to disappointment if that domain name is not available for purchase, or if someone else is already using the name as a handle on social media platforms. 

5. Get a website up and running

Having a website usually matters as people increasingly rely on online searches to get answers to questions, solve problems, shop for products, and research business services. Building a website is usually a matter of doing three things: 

• Choosing and purchasing a domain name 

• Setting up web hosting 

• Installing a theme and designing the site 

At a minimum, a new business website should have a home page where visitors will land if they’re clicking over from a search engine or social media. It’s also helpful to have a contact page as well as a detailed “about” page that offers some background information about the business. 

A shop page may be necessary for businesses that are marketing digital or physical products. Businesses that are selling online services may instead opt to create a page that explains their services and pricing. Adding a blog component could be helpful for driving traffic, although it’s not a requirement. 

A startup may be able to tap free business resources for getting a website up and running. For example, some sites may offer a suite of free tools that business owners may use to connect with customers, promote their content online, and manage business files or documents. Each platform will be different, so be sure to look for the one with the features or abilities you care about.  

6. Launch

Once a business settles on an idea, writes a business plan, registers with any state or local agencies, and builds an online presence, there’s usually only one thing left to do: launch. 

This is where marketing typically plays a key role as people aren’t going to show up without a prompt or invitation. There are different ways to market a new business, many of which don’t require spending any money, including: 

• Sign up for social media: There are several free platforms business owners can use for marketing. Whether it makes sense to sign up for all of them or just one or two may depend on the type of business and the target audience. 

• Network locally: Local small business networking events could be a great opportunity to introduce a new business. Community events that feature small businesses are another chance to spread the word while connecting with potential customers in person. 

• Ask for referrals: Word of mouth may be one of the most powerful marketing tools and it doesn’t have to cost anything. Asking friends and family for referrals, or tapping existing customers, may help bring in new leads. 

Businesses you could start with no money 

Before starting a business with no money, entrepreneurs may want to take a personal inventory to assess their skills, experience, knowledge, and passions to decide on the best business idea for them. 

Start where you are and with what you have 

Some of the best businesses to start are ones that have low or no startup costs. These are often businesses that rely on existing skills or interests that could be monetized by offering a service. 

• Freelance writing: It’s possible to start a freelance writing business with nothing more than a computer and an internet connection. Someone with solid writing skills and a willingness to learn could turn this into a business with minimal investment. 

• Virtual assistant: Virtual assistants help other business owners with tasks they don’t have time to complete on their own, such as managing emails, scheduling appointments, or creating databases. Like freelance writing, this business may require only a laptop and internet connection to get started. 

• Tutor or online teacher: Tutoring and teaching classes online may be a good fit for people who have special knowledge. Tutoring could be done online or offline, and the only investment that may be required is time. It’s also possible to teach live or pre-recorded classes online.  

• Walk dogs or pet sit: Walking dogs and pet-sitting are typically low-investment business ideas, since there may be nothing required at all to begin. This could also be a fun business for people who like spending time with animals. 

• Photography: Starting a photography business may require nothing more than a good camera and a website for marketing. Choosing a profitable niche, such as wedding photos or pet photography, could up the earning potential. 

Consider a drop shipping business 

Drop shipping could be a profitable business model that doesn’t take a lot of money to start out of pocket. Not sure how drop shipping works? Here’s a shorthand explanation: 

• Dropshippers set up an ecommerce website and list products for sale that they’ve purchased through a third-party supplier at wholesale prices. 

• They promote their products on social media, selling them to customers at retail prices. 

• When someone buys an item from their shop, the supplier is responsible for shipping it out to the customer. 

• The dropshipper makes a profit from the difference between the wholesale price and the retail price. 

Dropshipping is a popular way to make money online because it doesn’t require maintaining any physical inventory. The supplier houses all the goods and handles shipping them out to customers. 

The key to running a successful dropshipping business is finding the right products to sell. Again, social media and trends across search engines are two free tools that may prove helpful for identifying trending products with strong potential for profit. 

Design print-on-demand goods 

Print-on-demand (POD) is another popular business model with virtually zero startup costs. 

This type of business involves creating appealing designs and then uploading them to a POD platform. The designs may be offered for sale on different types of products and when a customer makes a purchase, the POD company handles the printing and shipping. 

Some of the more popular print-on-demand products include: 

• T-shirts and sweatshirts 

• Coffee mugs 

• Reusable water bottles 

• Tote bags 

• Notebooks and journals 

• Stickers 

• Art prints 

When comparing POD platforms, pricing matters. While it may cost nothing to create an account and upload designs for sale, the platform may collect a share of the profits when an item sells. 

Become an influencer and create content 

Influencers are people who have built a following on social media by creating video or written content. They could make money online in a variety of ways, including: 

• Selling branded merch: Branded merchandise may feature the influencer’s logo or catchphrase on items such as hoodies and T-shirts. 

• Affiliate marketing: Affiliate marketing involves recommending products and services from other businesses, and then earning a commission when someone buys that product. A beauty influencer, for instance, might earn commissions as an affiliate of a particular mascara brand. 

• Selling ad space on a blog: Influencers who run a blog may monetize it by allowing companies to place ads. They might earn money each time someone views a blog page that has ads on it or clicks on an ad. 

• Sponsorships and brand ambassadorships: Sponsorships could be lucrative for influencers who have a sizable audience. For example, a personal finance influencer might write a blog post reviewing tax preparation software that’s sponsored by the company that makes the software. They get paid in exchange for the review. 

• Selling products: Influencers may push their own products, other than branded merch. For instance, a productivity influencer might design and sell digital or physical planners. Or a parenting influencer might sell an eBook that compiles their best tips for raising independent children. They could sell their products on their own website, via social media, or on a publishing platform. 

Other business ideas 

Some business ideas don’t fit into any one category. Here are a few more possibilities for how to start a business with no money: 

• Try a seasonal business, like raking leaves, cleaning pools, or shoveling snow. 

• Become a professional reseller and flip furniture, electronics, or other items for money. 

• Sell handmade items or digital products on an online platform. 

• Offer in-home childcare. 

• Start a house cleaning business or home laundry business. 

• Sell baked goods or homemade pet treats. 

Remember to check any local or state laws when deciding what kind of business to start. Launching a baking business from home, for example, may require special licensing from the health department.  

What if I can’t start my business without money? 

There are a variety of ways to raise money for a business when funds are needed to get things off the ground. The size and scope of the project could influence which funding options will best fit a business. 

Crowdfund the business 

Crowdfunding brings together potential investors with business owners who need funding. Entrepreneurs can create campaigns on websites and receive funding from people who are interested in helping their businesses grow. 

When comparing crowdfunding platforms, fees and services may be a factor for launching and running a campaign, as well as whether any restrictions or limitations apply on the type of business that can be crowdfunded. 

Consider venture capital or angel investors 

Venture capitalists (VCs) and angel investors are people who invest in startups that look promising on paper. In exchange for funding, they might claim an ownership stake in the business or want to have a role in running the business.  

Success and tenure may open new funding opportunities 

As a business grows, that can open new avenues for funding, including the ability to qualify for grants and small business loans. 

There are different options for finding small business loans, including: 

• Small Business Administration (SBA) loans 

• Business loans offered by traditional banks and credit unions 

• Online business loans or business lines of credit 

When the time seems right to apply for a small business loan, a business might want to weigh how much is truly necessary to borrow and how that money will be used, as well as loan repayment terms, interest rates, and fees. 

Don’t let money stop you from starting your business 

It’s often said that it takes money to make money and to an extent, that can be true. However, starting a business with no money is not impossible and a lack of funding shouldn’t be a roadblock to chasing entrepreneurial goals. Exploring low-cost business ideas and working out a basic business plan are good places to start.  

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