How To Start a Business With No Money

Starting your own business sounds ideal: the autonomy to be your own boss, the satisfaction of building something that others love, the potential for great profits, and the flexibility to work whenever you choose. 

But there are valid reasons why many of us don't take the plunge. There's stability with W-2 employment and a job that requires one core skill rather than needing to “do it all.” Plus, where do you find potential customers and, most importantly, the cash to do it?

Don't worry. If you want to start a business with no money, you still have options.

Businesses You Can Start With No Money

There is an old adage that “it takes money to make money,”  though this rule is becoming less true in the digital age.

While this list is by no means exhaustive, these examples of business ideas may inspire you. 

• Physical services: You can provide physical labor such as mowing lawns or helping others move furniture, then grow it into a full landscaping or moving business. 
• Digital services: There are online business opportunities for photography, video editing, social media management, advertising, website design, creative writing, and affiliate marketing. 
• Teaching a skill: If you already possess in-demand skills, you could start a business teaching others. Examples include dancing, yoga, painting, singing, photography, and sports.
• Selling products: While physical storefronts can require significant startup costs, you can sell online much more cheaply.  For example, you could start an Etsy store, selling digital products, like print-on-demand designs, digital templates, or handmade goods. Etsy and other platforms like Amazon, and eBay make it easy to create listings for free or as little as $0.20. 

READ MORE: How To Start a Side Hustle

Conduct Market Research

It is extraordinarily rare to create an entirely new market; however, it is very possible to solve a pain point, improve on the popular way of doing something today, or appeal to a niche audience. Other entrepreneurs are likely doing something related to your business idea, which is completely okay! 

To start your market research, find related businesses and observe what products and services they offer and at what price.

Some questions to keep in mind:

• What is your unique business proposition?
• How would you stand out from these other businesses? 
• Do you have a niche target market?

One way to test the market is to give away your product for free for a limited time. If you struggle to find free customers, it will be even harder to find paying customers. But if there is a flood of interest for your free product, then you’ll know there’s a market.

Search for Free Resources

Businesses no longer need a website or online store to survive. For example, you can start your marketing strategy with a free business page on Facebook and profiles on Instagram, X, and TikTok.

Use these channels to reach new prospects and build a community with current followers. Facebook, Instagram, and TikTok have shops where you can sell products directly, though many entrepreneurs use social media to link to marketplaces such as Etsy or Amazon. 

READ MORE: How Much Erika Kullberg Makes on Social Media

There are lots of other free tools, too, like the free versions of Adobe Express and Canva for designing logos or slogans that can be printed on t-shirts and mugs.

For example, you could share these designs on Instagram and Facebook, where you direct interested buyers to an Etsy store. That Etsy store is linked to a print-on-demand service that handles all the printing and shipping — leaving you with a share of the sale at no additional costs. 

Other resources to take advantage of include:

• Networking on LinkedIn
• Tutorials on Youtube 
• Finding business mentors through SCORE
• Learning and development courses provided by the Small Business Administration

Consider Financial Implications

There are a number of important financial considerations when starting your own business. 

Leaving your job

Many full-time workers spend at least 40 hours per week in their current role.

When considering the need to eat, sleep, commute, exercise, and spend time with friends, family, and partners, you may have very little time and energy left to start a new business. Having such little time to work on your business idea could be demoralizing. 

But your job provides a steady paycheck for housing, healthcare insurance, a retirement plan such as a 401(k), and other necessities.

Many successful business owners start a business as a side hustle and keep their current job until their side hustle nearly replaces their current income. 

READ MORE: 15 Side Hustles from Home You’ll Actually Want to Do

Business expansion

You may need to start small.

For example, if you’re making handmade goods and selling them on Etsy, then you may only have enough initial capital to make a few products. However, as you sell, you can use that revenue to purchase more materials and continue to grow.

Similarly, if you start selling services to help move furniture, you may eventually take that income and invest in a moving van or improved equipment.

Funding your business

While you can start some businesses with no money, you may still require some capital. Avoid high-interest debt as much as possible!

Instead, try to fund your business using personal savings or apply for small business loans or small business grants. You could also borrow from friends and family, but keep in mind you could risk important personal relationships if you run into repayment struggles.

Bank loans may be an option, but some banks may be reluctant to fund new businesses without meaningful collateral.

Finally, you may be eligible for a business credit card, but watch out for the high cost of carrying a balance from month to month. 

Tax considerations

Starting your own business may come with tax benefits. For example, operating a business out of your home may provide deductions for part of your rent, cellphone bill, and utilities.

When you first get started as a business owner, you will likely operate as a sole proprietorship. But as your business grows and you begin working with customers or taking on financing, you may consider starting an LLC.

In some cases, an LLC can shield your personal assets from liability in the event your business enters bankruptcy or is faced with a lawsuit.

There are companies that can help you through the process, such as LegalZoom, which offers an LLC formation service that walks you through the process step by step.

Consult a tax professional before using your business for write-offs and to get help determining the best business structure.

FAQs

What businesses can I start with no money?

Many types of businesses can be started with no money.

You can offer physical services like landscaping or repairs, provide digital services such as website design or social media management, teach a skill you already possess, or sell products you've made on platforms like Etsy and Amazon.  

Do I need a business license?

Depending on the type of business you're operating, you may require a business license. This is especially true if your business includes food or alcohol, construction, giving financial advice or managing money, hosting musical events, or using public resources.

Make this a part of your market research, and talk with others in your field or at your local SBA. If you’re selling on a platform such as Amazon or Etsy, you’ll also want to communicate with their seller customer service team.

TL;DR

It's totally possible to start a business without having any money. Physical services like lawn maintenance, digital services like writing and web design, and selling your own handmade goods are all businesses that don't require much money to start up.

You'll need to start small and may even need to keep your day job until you start earning enough. But if you have the passion for it, you'll make the time for it — and soon enough, your business will start growing!

For more tips on starting and managing your own business, check out these episodes of the Erika Taught Me podcast:

• 99% of Business Owners Make This Mistake
• The Secret To Building a Billion-Dollar Company
• Lessons from the Rise and Fall of Nasty Gal