How To Start A Business With No Money

Streamline your staffing plans. It's expensive to pay your staff, especially if you want to hire well-trained professionals. Initially, keep your staff as small as possible to minimize expenditures. The U.S. Small Business Administration (SBA) recommends spending no more than about 50% of your profits on employee wages.[1] If you can do all of the business's work without taxing yourself to exhaustion, go it alone initially. Otherwise, employ the smallest number of people necessary to do the job safely and professionally. As the business grows, you'll find a natural need to hire more people.
Keep in mind that, today, depending on where you live and the kinds of people you employ, you may be required to pay for an employee's medical insurance in addition to his or her base salary.Ask friends and/or family for a loan. When attempting to build a business from scratch, your creativity and hard work can take the place of a substantial amount of money. However, you may reach a point where you simply can't proceed without a little money. For instance, you may need a certain expensive piece of equipment which you don't own and can't borrow. Many small businesses find their feet with help from a kind relative or friend. Before you agree to a loan, however, make sure you specify the terms of the loan in writing - how long you'll have to pay the loan back, how big your payments will be, etc.
It may be an especially good idea to have a clause specifying that if the business fails, you'll have an extra-long time to pay back the loan (or won't have to pay back the loan at all).Secure an official small business loan. Many governments offer loan programs specifically designed to get small businesses off the ground. In the U.S., the SBA is the agency that operates these programs. The most commonly-used SBA loan program is the 7(a) program, which requires businesses to meet a variety of requirements to ensure that the money is being well-spent. These requirements state that the business must:[2]
Operate for profit
Meet SBA guidelines for what makes a business "small"[3]
Operate in the United States or its territories/possessions
Have sufficient equity (basically, value.)
Exhaust other reasonable avenues of raising money before applying
Be able to demonstrate a need for the loan
Be able to show a sound use for the money
Not be delinquent on any existing loans to the governmen