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How to Start a Business With $0 (Or Pretty Close)
Learn about what businesses you can start with limited to no startup capital.
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Possessing an entrepreneurial spirit may be all you need to generate business ideas and start planning your new venture. However, the reality is that you’ll need a certain amount of capital to get your business off the ground and see it through to growth and success.
Fortunately, specific business ideas and startup strategies can help you get your company off the ground for little to no money. We’ll explain how to start a business with little to no capital, highlight ideas for low-cost ventures, and share tips for finding funding and saving money.
How to start a business with no money
Many of the same entrepreneurial tips apply whether you’re opening a business with limited resources or a generously funded venture. However, you’ll need to perform these steps with an eye toward minimizing costs. Here are the steps you’ll need to take:
1. Choose a low-cost business idea.
While you can minimize startup costs as much as possible for any venture, some businesses inherently require more financial resources. For example, starting a restaurant, retail store or real estate development business will require a substantial up-front investment, so these aren’t great options if your goal is starting a business with $0.
In contrast, starting a service-based business or selling digital products doesn’t require a significant capital infusion to get off the ground. If you specifically want to start a business with as little money as possible, choose a venture that aligns with these goals. (We’ll detail specific low-cost business ideas below.)
2. Conduct market research related to your business niche.
Next, you’ll need to create a market research plan to clearly define your low-cost startup’s objectives. Start by identifying your target audience — who is your business trying to reach? Consider their demographics, behavior and preferences.
You can also research competitors in your space to learn more about their offerings and how they position themselves. Researching your rivals can help you identify gaps in the market and determine ways to stand out from the competition.
3. Write a business plan for your low-cost business idea.
Your business may not require much capital to get up and running, but this doesn’t mean launching it will be easy. That’s why creating a thorough business plan is essential. Your business plan will serve as a road map and walk you through each stage of the startup launch process. An organized, thorough startup plan is also a great way to reduce overwhelm and hold yourself accountable for your goals.
4. Determine how much you can DIY.
Entrepreneurs may not be experts in every aspect of running a business, but they’re typically innovative and resourceful. A great way to launch a business with minimal funds is to do as much as possible yourself. Consider building your website, handling your social media marketing, doing your own accounting, and creating an SEO strategy.
Allison Harrison, founder and principal attorney at ALH Law Group, started a firm at 28 with only $3,500 in the bank and learned that self-education is vital to thrifty entrepreneurship.
“When I started my business, I had more time than money,” Harrison recalled. “I learned how to build a website, rank on Google, [and] handle clients and billing. There is a vast amount of free information on the internet to teach yourself how to run and grow a business.”
DIYing doesn’t stop after you launch a business. “Once I had a stream of income coming in, I invested in business books and then coaching to help continue to grow my firm,” Harrison added.
5. Launch and grow your low-cost startup.
Once you’ve done your research and laid the groundwork, it’s time to launch your business. You’ll quickly be able to gather customer feedback about your products or services and improve the quality of your offerings.
Marketing is crucial for launching and growing your business. To keep costs down, market your business for free with strategies like networking on LinkedIn and creating a social media presence. Email marketing campaigns are another excellent, low-cost marketing strategy. Start building an email list immediately and send interested parties valuable information and offers.
As your business begins to earn money, you can invest more in its long-term growth with paid options like pay-per-click (PPC) advertising.
Businesses you can start with little to no money
Many businesses with low overhead costs can be started on a shoestring and then scaled up. Some business owners start small, working out of their homes or online, and then expand to hire more workers or find a larger location. If you want to get started for less, here are a few businesses that are relatively easy to begin with a small amount of capital:
1. Start a freelance business.
Any freelance business comes with low overhead. Whether you’re a writer, graphic designer, web developer or software coder, your skills can help you launch a streamlined, low-cost venture.
Becoming a freelancer can require little more than your skills, a computer and internet access. Over time, build up your clientele and hire others to do some of the work to scale your operation.
2. Start a consultancy.
If you have knowledge and skills others can benefit from, consider launching a consultancy to guide, advise and mentor other operations. Consultancies often start small and grow to become reputable, midsize firms.
Tech consultants are in high demand, as are business consultants and consultants for specialties such as legal, financial and sales.
3. Start an online craft business.
If you have an artsy or crafty side, use your unique skills to start a business with very little money. Your hobby may become lucrative as you turn your beautiful items into products others will treasure.
Scaling a craft business is relatively straightforward. As your business grows, hire talented people or explore other ways to produce what you need.
4. Start a caretaking business.
If you’re a patient and compassionate professional with a background in caretaking, consider caring for older adults or people with special needs. Your business can be incredibly fulfilling and, depending on your goals, you can keep it small and intimate or scale to create a broader in-home care business.
5. Start a cleaning service.
If you have a stockpile of cleaning supplies and a knack for tidiness and organization, you can start a janitorial or cleaning business for homes and offices. Quality work will earn you referrals, and you can quickly turn this low-cost startup into a growing service with additional workers and a broader range of offerings.
6. Start a virtual assistant business.
With a reliable internet connection and a keen eye for organization and detail, you can launch a virtual assistant business for business professionals. Virtual assistants perform a wide array of tasks, including sorting through email, scheduling, proofing, sending messages, and managing or improving someone’s social media presence.
As you gain more clients, you can hire additional workers — perhaps even your own assistant.
7. Start an e-commerce business.
Setting up an online store can be incredibly cost-effective. You’ll likely only need an internet connection and a digital product (or a dropshipped product) to sell. Third-party websites like Etsy, eBay and Amazon make it easy to sell your creations.
Your e-commerce business can sell e-books, online courses or printable downloads. Test your offerings to see what gets the best results, and discard the ones with little interest. Once you have a library of successful digital products, you can continue to collect passive income.
If you choose dropshipping, you can sell physical products without holding inventory, as a third party handles storage and shipping on your behalf.
8. Start a dog walking or pet sitting business.
Pets are ubiquitous and beloved. If you love animals and have the right temperament, you can canvass the neighborhood for dog walking and pet-sitting opportunities. Professionals who work long hours will likely appreciate knowing their canine companion is being taken out for walks during the day, and reliable pet sitters are highly sought after. Once you earn trust and repeat business, you’ll likely be flooded with referrals.
How to find funding for your business
Although starting your business may require little to no money, there’s a good chance you’ll have to make some kind of investment — especially if you expand. Take advantage of the following resources to help fund your business.
- Business grants: Business grants are essentially free money given to help fund businesses. However, they often come with requirements and stipulations. Business grants are competitive and can be difficult to win, so only apply for grants you clearly qualify for.
- Business loans: Although business loans may be easier to obtain than grants, they often come with hefty interest rates, fees and repayment terms. Research what’s available to find the best business loan and financing options for your venture’s needs.
- Friends and family: Harrison advises looking close to home for funding options. “One of the best ways I see my clients fund is by personal loans from family and friends who believe in the business.”
- Crowdfunding: If you don’t feel comfortable asking a specific person to help finance your business, consider raising money through crowdfunding. There are four types of crowdfunding: donation, debt, rewards and equity.
- Saving money: As your business earns more, set aside as much money as possible. Eventually, you could save enough to expand your successful business when the time is right.
How to save money when starting a business
New businesses are often strapped for cash, so entrepreneurs learn creative ways to save money while learning and growing. Here are a few tips:
Free marketing resources
Numerous free resources can help you get expert advice on traditional and digital marketing strategies, including the following:
- Social Media Explorer (SME) and its expert-published authors provide insightful content on digital marketing.
- Social Media Examiner is a free newsletter packed with marketing information.
- CareerFoundry offers a free digital marketing course.
Low-cost outsourcing
Outsourcing can be a great way to expand your business without the expense of hiring workers or consultants. For example:
- Sign up with Upwork, Skyword or Contently to find low-cost professional content creators for your social media platforms or blogs.
- Visit websites like 99designs to find help with low-cost web design and brand marketing resources.
- Use sites like Fiverr for help with audio, video and social media content or marketing assistance.
- Find a virtual assistant to handle mundane tasks so you can focus on growing your business.
Low-cost payment acceptance
If you sell goods and services in a retail location or on the go, payment processors like Square (read our Square review for details) and low-cost payment platforms like PayAnywhere can help you accept a variety of payment options and turn your smartphone or tablet into a point-of-sale device.
These tools work especially well for service businesses like salons, spas and massage therapists, but they can be adapted for almost any type of business.
Low-cost video conferencing
Video conferencing tools are key to helping you stay in touch with customers and vendors and expand your business:
- Zoom allows you to make low-cost calls worldwide, saving you money as you connect with new clients and customers.
- Services like GoToMeeting make it easy to hold video conferences and training sessions with people in remote offices, cutting down on travel costs for your business.
Jamie Johnson contributed to this article.
