How to Start a Business With No Money
Despite this, it remains a dream to many due to funding constraints. In fact, according to Zapier, 63% of Americans haven’t followed through with starting a business due to a lack of funding.
Even if you actually know how to make a mouthwatering pie that people would line up for, you need a lot of money upfront. Besides a physical location, you need key equipment like pizza ovens. Simply going the food truck route would also cost a pretty penny.
Another option? About taking your passion and knowledge and sharing it with others through a blog. Believe it or not, you can set up your own blog via Blogger or Medium. So, that means you’re only investing your time. And, eventually, when you get a following you can make money with ads and affiliate marketing.
Consider what you have available in greater detail than what springs to mind immediately. And, you should also document your findings so that you take stock of what you already have and how that can assist you.
Focus on businesses that require little upfront capital.
After considering what you have at your disposal, are there any low-cost business ideas that correspond? Again, if you’re a pizza aficionado, then starting a blog is an obvious business idea that requires little capital upfront.
A service-based business is one in which you sell services as your primary product. Due to the fact that you won’t be selling products, you won’t need inventory, a shop to manufacture the goods, or a warehouse to store them.
Almost any service business can be started on a shoestring budget. Online businesses, especially, are well suited to this. Often, you need nothing more than a computer, an internet connection, and your time. Suggestions would be consulting, freelancing, or dropshipping.
Find a no capital business idea
A low-to-no capital business would be one where most of these costs don’t apply. An online business or home-based business lets you eliminate rent, tenant improvements, and office costs—and maybe even take a tax deduction for using part of your home for business. If you do everything yourself, you can eliminate labor costs.
By choosing a business that uses the tools and equipment you already have, you can eliminate that cost. Service or knowledge-based businesses don’t require inventory or raw materials since you won’t be making or selling any physical goods. You will probably require a computer, although you may be able to run some businesses entirely through your phone.
What about a website, or advertising and promotion? You may be able to eliminate these entirely by setting up shop on one of the many service provider marketplaces and sharing economy marketplaces that handle all that for you. To name just a few:
Some of these platforms may even provide some form of insurance as part of their offering, but you should be sure to understand what is covered and whether you need supplemental insurance.
If you really want to spend zero money, you could do all of your accounting on paper and only accept payment by check or cash, but as a practical matter you’ll probably want to use some kind of accounting and tax software and set up a merchant services account so you can accept credit cards , as that is the preferred payment method for U.S. consumers.
The only costs you may not be able to avoid as a business owner are any licensing or permit fees required by your county, city, or state for your type of business, and legal fees if you decide you want to incorporate.
You really can start a business for little money if it’s one that’s home-based, has no employees, doesn’t do any manufacturing or retailing, and requires no upfront investment in a website or marketing. If you’re looking for ideas, simply search the web for “no capital” or “low-cost” business ideas and you will find an abundance of lists to inspire you.
How to Keep Your Business Viable
Build Your Business Around What You Know
Make sure you use your skills and knowledge, at least for the first product or service. Venturing into uncharted territory can be deadly and will require you to rely on outside sources. Building a business on your personal expertise eliminates the need for excessive amounts of outside assistance and expensive business consultants.
Understand the Law
When it comes to legal and financial services, Melani Gordon, CEO of TapHunter, claims that “cheapness isn’t always the best”. You may need help with contracts, patents, trademarks, taxes, bookkeeping or financial reports. Find companies that can provide an effective service. Quality should take priority over price.
Hold Onto Your Job!
If you are currently employed, keep working. Setting up a new business is risky, so only leave when your venture can pay you a wage. It’s not easy, but it is feasible to combine working with starting a business in your spare time.