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You Can Do It: How to Start a Business Without a Loan

Mehul Rajput
Mehul Rajput

Starting a business, almost every time has two major scenarios. One has to do with people who have loads of money stacked up and the obstacle is not having any viable idea to fund.

The other lot consists of people who do have a perfectly viable idea; however, funding it is a concern.

Though, if aspiring entrepreneurs from both these scenarios meet, the problem of both will get solved. However, is destiny so perfect? Alas....

If figures are to be seen, then as a whole, there are numerous (read in millions) individuals or teams that launch businesses. Most of these businesses need startup costs with regards to employees, space, materials, shipping, equipment and such other things.

Not to mention, costs can skyrocket to unexpected levels for some domains; especially for the manufacturing or retails sectors.

So does all this mean doom day for your business idea if you don't have the money? Well, there are different ways in which you can still ensure to get your business on floors without having to run around banks to provide loans.

Right from utilizing personal savings, to getting funds from your friends or family members, you can definitely ensure that your business sees the light of the day. Moreover, with the norms for business lending getting tougher, exploring some other methods to finance your startup is the best foot forward.

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Here are some ways that can help you out with regards to starting your business without loans:

Initiate It as Part Time

Does this seem surprising and almost impossible? Well, it sure can be difficult to launch a business in your spare time; if you are already stocked up with existing work pressure. However, if you can really find some time during the weekdays and consume your holidays entirely for your business launch, then this is definitely workable.

Start Out With the Bare Minimum

This is actually true for every startup; irrespective of whether it is funded by a loan or is self-funded. Ensuring that you begin slowly with regards to necessities will make sense financially till your business gains momentum.

You can choose to start out of your home for a year or so and not rent out office space. Opting for used equipment and using free sources to market your brand or product are other things that can prove helpful to keep costs low.

Run With Low Budget

If you unable to bear costs of office, furniture, energy bill, taxes, etc. think of other alternatives such as:

  • Rent a ready to use office
  • If office is with inadequate space, hire meeting rooms on hourly or daily basis
  • Hire staff on short terms and wages
  • Hire freelancers if possible
  • Outsource your work based on the nature of work and affordability
  • Prefer online business rather than investing in brick infrastructure

Seek Funding From Close Ones

Though this might make you go weak in the knees, friends and members of your family can surely be approached for some funding. However, remember that you have all details related to your business idea and expected projections for the current and next year in place. Having figures handy can help you gain confidence and ensure that you pitch in the right method for sourcing from close ones. Remember to provide them with payback dates.

Partner or an Investor

This can be a choice based on your preferences. Having a like-minded partner can be beneficial in many ways. You can have someone to take care of some things for your business that includes accounting concerns, promotions, advertising and most importantly, bring in new ideas to boost your prospects. With an investor, you can be assured of funds to propel your ideas and yet ensure that you remain the sole proprietor.

Reinvest Profits

The fact that you are into business means that you have high aspirations and intend to make a lot of your fantasies or dreams real. This can lead to you starting to indulge more and utilize whatever you earn as profit for the realization of dreams.

However, keep in mind that you have just started out and hence, utilizing these profits to refund your business for growing it is important if you intend to stay away from loans. Investing guidelines from experts can also be beneficial to ensure that excess funds are invested correctly so that you can reap rewards.

Think of Low Investment Business Idea

Instead of huge investment businesses, you can think of the service-oriented company, Consultancy Company, freelancer based company, outsourcing company, broker, and such nil to low investment ideas.

Crowdfunding or Equity

The internet has many websites that offer options of getting funds from a pool of people. So instead of looking out for funds from a single source, you can opt to boost your business via funds received from a crowd. You can offer returns to people who put in money for your business and ensure that you don't let your business idea die.

Most of the sites that allow crowdfunding will expect some percentage in return as equity, while others will seek rewards. So based on your preferences, you can opt for this method of raising money.


On a final count, even if you have chosen to bootstrap, remember to be open to taking the next leap with regards to getting outside funds at some time in future. This will ensure that you do not miss out on opportunities to grow based on market needs. Additionally, you will also miss out on opportunities for boosting your business with other creative minds. So make informed decisions and let your business grow.

Capital for business investment never remains a significant constraint for a scrappy entrepreneur, as there are plenty of ways to run a successful business without taking any loan or borrowing of interest-based resources. The most important thing is your willpower and commitments to overcome debut hype. 

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Image Credit: SFIO CRACHO/Shutterstock
Mehul Rajput
Mehul Rajput Member
Mehul Rajput is a CEO of Mindinventory, a company that develops iOS and Android apps. He is a regular contributor for, Tech Cocktail, Site Pro News, Biz Community, Inc42 and Business2Community and many others. He does blogging as hobby and love to write on mobile technologies, app development and mobile app marketing.