How to Start Your Own Business Without Money

 

Getting Started
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Keep your current job. By retaining a reliable source of income, you save yourself from the worry of not knowing how you'll pay your mortgage and from dealing with mountains of potential debt. However, you will have to work harder. Ideally, when your new business begins to pick up steam, you can gradually make the transition from a full time employee at your old job to a consultant or part-time worker. Eventually, you can transfer to your own business full-time. Though in real life this process often doesn't go quite as smoothly, it's almost always safer than dropping everything to pursue a dream that hasn't materialized yet.
This first step is all the more important if you're supporting a family. Don't jeopardize your family's future by giving up your primary source of income to pursue a personal dream. Though it's harder to balance your side project with your day job and your family life, it's much safer.
If you think you may want to start your own business in the near future, avoid signing an employment contract with a clause restricting your ability to pursue other sources of income. Don't be afraid to carefully go over your contract with a lawyer.
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Design a business plan. How will you make money? If you can't answer this question, you shouldn't start your own business. The purpose of any for-profit institution is to make money - have a detailed plan for how to do this before you embark on your business venture. Try to answer the following questions - these are fairly fundamental and by no means exhaustive:

• How much will it cost you to provide your product or service to the customer?
• How much will you charge the customer for your product or service?
• How will you increase the volume of your business?
• In what ways will your business offer a better deal than your competitors?
• What kinds of people will you need to hire? Can the work be done without these people?

You’re excited to start a business. Maybe you have an idea, or you’re just fascinated with the idea of launching and growing your own enterprise. You’re willing to take some risks, like leaving your current job or going without personal revenue for a while. But there’s onelogistical hurdle stopping you: You don’t have much money.

Related: 7 Myths About Starting a Business That I Used to Believe

On the surface, this seems like a major problem, but a lack of personal capital shouldn’t stop you from pursuing your dreams. In fact, it’s entirely possible to start and grow a business with almost no personal financial investment whatsoever -- if you know what you’re doing.

Why a business needs money
First, let’s take a look at why a business needs money in the first place. There’s no uniform “startup” fee for building a business, so different businesses will have different needs. It’s important to first estimate how much you need before you start finding alternative methods to fund your company.

Consider the following uses:

 
Licenses and permits. Depending on your region, you may need special paperwork and registry to operate.
Supplies. Are you buying raw materials? Do you need computers and/or other devices?
Equipment. Do you need specialized machinery or software?
Office space. This is a huge expense, and you can't neglect things like Internet and utilities costs.
Associations, subscriptions, memberships. What publications and affiliations will you subsribe to every month?
Operating expenses. Dig into the nooks and crannies here, anddon’t forget about marketing.
Legal fees. Are you consulting a lawyer throughout your business-development process?
Employees and contractors. If you can’t do it alone, you’ll need people on your payroll.
With that said, you have two main paths of starting a business with less money: lowering your costs or increasing your available capital from outside sources. You have three options here:

Related: Starting a Business in 2016? Avoid These 5 'Beginner' Mistakes.

Option one: Reduce your needs
Your first option is to change your business model to demand fewer needs as listed above. For example, if you were planning on starting a company of personal trainers, you could reduce your “employee” expenses by being the sole employee at the start. Unless you need office space, you can work from home. You can even do your homework to find cheaper sources of supplies, or cut out entire product lines that are too expensive to produce at the outset.

There are a few expenses that you won’t be able to avoid, however. Licensing and legal fees will set you back even if you cut back on everything else. According to the SBA, many microbusinesses get started on less than $3,000, and home-based franchises can be started for as little as $1,000.

Option two: Bootstrap
Your second option invokes the idea of a “warmup” period for your business. Instead of going straight into full-fledged business mode, you’ll start with just the basics. You might launch a blog and one niche service, reducing your scope, your audience and your profit, in order to get a head-start. If you can start as a self-employed individual, you'll avoid some of the biggest initial costs (and enjoy a simpler tax situation, too).

Once you start realizing some revenue, you can invest in yourself, and build the business you imagined piece by piece, rather than all at once.

Option three: Outsource
Your third option is all about getting funding from outside sources. I’ve covered the world of startup funding in a number of different pieces, so I won’t get into much detail, but know there are dozens of potential ways to raise capital -- even if you don’t have much yourself. Here are just a few potential sources for you:

Friends and family. Don’t rule out the possibility of getting help from friends and family, even if you have to piece the capital together from multiple sources.
Angel investors. Angel investors are wealthy individuals who back business ideas early in their generation. They typically invest in exchange for partial ownership of the company, which is a sacrifice worth considering.
Venture capitalists. Venture capitalists are like angel investors, but are typically partnerships or organizations and tend to scout businesses that are already in existence.
Crowdfunding. It’s popular for a reason: with a good idea and enough work, you can attract funding for anything.
Government grants and loans. The Small Business Administration (and a number of state and local government agencies) exist solely to help small businesses grow. Many offerloans and grants to help you get started.
Bank loans. You can always open a line of credit with the bank if your credit is in good standing.
Related: 5 Mistakes to Avoid When Starting Your First Business

With one or more of these three options, you should be able to reduce your personal financial investment to almost nothing. You may have to make some other sacrifices, such as starting small, accommodating partners or taking on debt, but if you believe in your business idea, none of these losses should stand in your way. Capital is a major hurdle to overcome, but make no mistake -- it can be overcome. 

1. Make something.
Yes, making something does take an initial cost in supplies, but oftentimes, these products can be sold for many times over their actual cost. What you decide to make is up to you, but there are several places you can sell your handmade options online:

 
Abe’s Market deals in natural and organic goods, such as lotions, candles, granola, and more.
Etsy is one of the largest online markets for almost anything homemade, from jewelry to wooden toys for kids.
Bonanza is another growing handmade marketplace, similar to Etsy. According to PC World, it boasts over 10 million visits per month.
eBay is one of the biggest online ecommerce marketplaces in the world, and its streamlined store options, easy checkout through Paypal, and customizable listing options make it a great choice for selling items.
Many business owners sell their products on multiple platforms to get the most exposure possible. It is important, however, to make sure your inventory stays updated on all sites you have a storefront on. If you want to learn about more resources for selling homemade items, check out this Lifehacker post.

2. Resell something.
If you don’t want to make anything (or you don’t consider yourself a creative person), many business owners have grown large businesses just be reselling products that have already been made. This can be done through a variety of ways or channels:

Drop shipping: Set up an online store and partner with drop-shipping companies that will do all the order fulfillment for you. Online ecommerce platform Shopify has a great drop shipping guide, and Tim Ferriss does a good job of explaining drop shipping in his well-known book, The Four Hour Work Week.
Thrift stores and garage sales: If you know where to look, you can find items at thrift stores, antique shops, flea markets and garage sales and resell them online or in your local community for more than you purchased them for. One extremely successful example of this is Sophia Amoruso, the founder of Nasty Gal. Amoruso started buying and reselling vintage and unique fashion pieces on eBay, and her company has grown to a net income of $24 million in 2011 with over 200 employees. Her book,#GIRLBOSS, is in inspiring look into how she got started.
3. Sell your services.
One way to start a business with little to no startup capital is to sell your services, instead of a physical product. There’s a huge variety of services you can offer, depending on your background and interests.

Related: Starting a Business? When to Scrimp vs. Splurge.

Some will require advanced degrees, such as accounting, while others require little more than a working knowledge of how it’s done (such as babysitting, lawn mowing or personal assistance).

Because you are selling your services, you will need a branding plan to make sure your name and company gets in front of the people who may need the service. Some places that are free for promoting your services include Fiverr, Craigslist, Elance, Taskrabbit and Skillshare.

It’s also useful to have a website to show examples of your work, list your experience, and blog about your industry to draw visitors. If you want to learn more about branding and online marketing, check outBuffer’s social-media blog, Hubspot’s blog, Content Marketing Institute and CopyPress.

4. Barter to get what you need.
Unfortunately, it’s extremely hard to start a business without any type of funds at all. Even creating a freelance-writing business utilizing Elance and a free Wordpress or Wix website will still require a computer to work on as well as Internet. However, there are ways to get supplies you need for starting your business without money.

For instance, if you find yourself in need of a used laptop, try to barter for it. Build a new website for a used electronics supplier, or offer babysitting services to your neighbor for their old Macbook.

5. Utilize low-cost services.
As mentioned previously, you can use sites such as Fiverr or Elance to advertise your products and services on, but you can also use these platforms to build up your own company. For instance, many designers offer $5 to $25 logo designs (that come with free revisions). Sort by reviews and look at past examples to find a designer or service provider that matches your style.

This is a great way to get branding materials, printed items (Vistaprintand Zazzle are great places to buy personalized items), or other needed items without much cost. And for additional savings, be sure to look for coupon codes on sites such as RetailMeNot before checking out at any online retailer!

Starting a business requires ingenuity and a passion for what you are doing. Once you find yourself doing something you enjoy, you will be more likely to find ways to make it all come together.

1. Make something.
Yes, making something does take an initial cost in supplies, but oftentimes, these products can be sold for many times over their actual cost. What you decide to make is up to you, but there are several places you can sell your handmade options online:

 
Abe’s Market deals in natural and organic goods, such as lotions, candles, granola, and more.
Etsy is one of the largest online markets for almost anything homemade, from jewelry to wooden toys for kids.
Bonanza is another growing handmade marketplace, similar to Etsy. According to PC World, it boasts over 10 million visits per month.
eBay is one of the biggest online ecommerce marketplaces in the world, and its streamlined store options, easy checkout through Paypal, and customizable listing options make it a great choice for selling items.
Many business owners sell their products on multiple platforms to get the most exposure possible. It is important, however, to make sure your inventory stays updated on all sites you have a storefront on. If you want to learn about more resources for selling homemade items, check out this Lifehacker post.

2. Resell something.
If you don’t want to make anything (or you don’t consider yourself a creative person), many business owners have grown large businesses just be reselling products that have already been made. This can be done through a variety of ways or channels:

Drop shipping: Set up an online store and partner with drop-shipping companies that will do all the order fulfillment for you. Online ecommerce platform Shopify has a great drop shipping guide, and Tim Ferriss does a good job of explaining drop shipping in his well-known book, The Four Hour Work Week.
Thrift stores and garage sales: If you know where to look, you can find items at thrift stores, antique shops, flea markets and garage sales and resell them online or in your local community for more than you purchased them for. One extremely successful example of this is Sophia Amoruso, the founder of Nasty Gal. Amoruso started buying and reselling vintage and unique fashion pieces on eBay, and her company has grown to a net income of $24 million in 2011 with over 200 employees. Her book,#GIRLBOSS, is in inspiring look into how she got started.
3. Sell your services.
One way to start a business with little to no startup capital is to sell your services, instead of a physical product. There’s a huge variety of services you can offer, depending on your background and interests.

Related: Starting a Business? When to Scrimp vs. Splurge.

Some will require advanced degrees, such as accounting, while others require little more than a working knowledge of how it’s done (such as babysitting, lawn mowing or personal assistance).

Because you are selling your services, you will need a branding plan to make sure your name and company gets in front of the people who may need the service. Some places that are free for promoting your services include Fiverr, Craigslist, Elance, Taskrabbit and Skillshare.

It’s also useful to have a website to show examples of your work, list your experience, and blog about your industry to draw visitors. If you want to learn more about branding and online marketing, check outBuffer’s social-media blog, Hubspot’s blog, Content Marketing Institute and CopyPress.

4. Barter to get what you need.
Unfortunately, it’s extremely hard to start a business without any type of funds at all. Even creating a freelance-writing business utilizing Elance and a free Wordpress or Wix website will still require a computer to work on as well as Internet. However, there are ways to get supplies you need for starting your business without money.

For instance, if you find yourself in need of a used laptop, try to barter for it. Build a new website for a used electronics supplier, or offer babysitting services to your neighbor for their old Macbook.

5. Utilize low-cost services.
As mentioned previously, you can use sites such as Fiverr or Elance to advertise your products and services on, but you can also use these platforms to build up your own company. For instance, many designers offer $5 to $25 logo designs (that come with free revisions). Sort by reviews and look at past examples to find a designer or service provider that matches your style.

This is a great way to get branding materials, printed items (Vistaprintand Zazzle are great places to buy personalized items), or other needed items without much cost. And for additional savings, be sure to look for coupon codes on sites such as RetailMeNot before checking out at any online retailer!

Starting a business requires ingenuity and a passion for what you are doing. Once you find yourself doing something you enjoy, you will be more likely to find ways to make it all come together.

1. Make something.
Yes, making something does take an initial cost in supplies, but oftentimes, these products can be sold for many times over their actual cost. What you decide to make is up to you, but there are several places you can sell your handmade options online:

 
Abe’s Market deals in natural and organic goods, such as lotions, candles, granola, and more.
Etsy is one of the largest online markets for almost anything homemade, from jewelry to wooden toys for kids.
Bonanza is another growing handmade marketplace, similar to Etsy. According to PC World, it boasts over 10 million visits per month.
eBay is one of the biggest online ecommerce marketplaces in the world, and its streamlined store options, easy checkout through Paypal, and customizable listing options make it a great choice for selling items.
Many business owners sell their products on multiple platforms to get the most exposure possible. It is important, however, to make sure your inventory stays updated on all sites you have a storefront on. If you want to learn about more resources for selling homemade items, check out this Lifehacker post.

2. Resell something.
If you don’t want to make anything (or you don’t consider yourself a creative person), many business owners have grown large businesses just be reselling products that have already been made. This can be done through a variety of ways or channels:

Drop shipping: Set up an online store and partner with drop-shipping companies that will do all the order fulfillment for you. Online ecommerce platform Shopify has a great drop shipping guide, and Tim Ferriss does a good job of explaining drop shipping in his well-known book, The Four Hour Work Week.
Thrift stores and garage sales: If you know where to look, you can find items at thrift stores, antique shops, flea markets and garage sales and resell them online or in your local community for more than you purchased them for. One extremely successful example of this is Sophia Amoruso, the founder of Nasty Gal. Amoruso started buying and reselling vintage and unique fashion pieces on eBay, and her company has grown to a net income of $24 million in 2011 with over 200 employees. Her book,#GIRLBOSS, is in inspiring look into how she got started.
3. Sell your services.
One way to start a business with little to no startup capital is to sell your services, instead of a physical product. There’s a huge variety of services you can offer, depending on your background and interests.

Related: Starting a Business? When to Scrimp vs. Splurge.

Some will require advanced degrees, such as accounting, while others require little more than a working knowledge of how it’s done (such as babysitting, lawn mowing or personal assistance).

Because you are selling your services, you will need a branding plan to make sure your name and company gets in front of the people who may need the service. Some places that are free for promoting your services include Fiverr, Craigslist, Elance, Taskrabbit and Skillshare.

It’s also useful to have a website to show examples of your work, list your experience, and blog about your industry to draw visitors. If you want to learn more about branding and online marketing, check outBuffer’s social-media blog, Hubspot’s blog, Content Marketing Institute and CopyPress.

4. Barter to get what you need.
Unfortunately, it’s extremely hard to start a business without any type of funds at all. Even creating a freelance-writing business utilizing Elance and a free Wordpress or Wix website will still require a computer to work on as well as Internet. However, there are ways to get supplies you need for starting your business without money.

For instance, if you find yourself in need of a used laptop, try to barter for it. Build a new website for a used electronics supplier, or offer babysitting services to your neighbor for their old Macbook.

5. Utilize low-cost services.
As mentioned previously, you can use sites such as Fiverr or Elance to advertise your products and services on, but you can also use these platforms to build up your own company. For instance, many designers offer $5 to $25 logo designs (that come with free revisions). Sort by reviews and look at past examples to find a designer or service provider that matches your style.

This is a great way to get branding materials, printed items (Vistaprintand Zazzle are great places to buy personalized items), or other needed items without much cost. And for additional savings, be sure to look for coupon codes on sites such as RetailMeNot before checking out at any online retailer!

Starting a business requires ingenuity and a passion for what you are doing. Once you find yourself doing something you enjoy, you will be more likely to find ways to make it all come together.

1. Make something.
Yes, making something does take an initial cost in supplies, but oftentimes, these products can be sold for many times over their actual cost. What you decide to make is up to you, but there are several places you can sell your handmade options online:

 
Abe’s Market deals in natural and organic goods, such as lotions, candles, granola, and more.
Etsy is one of the largest online markets for almost anything homemade, from jewelry to wooden toys for kids.
Bonanza is another growing handmade marketplace, similar to Etsy. According to PC World, it boasts over 10 million visits per month.
eBay is one of the biggest online ecommerce marketplaces in the world, and its streamlined store options, easy checkout through Paypal, and customizable listing options make it a great choice for selling items.
Many business owners sell their products on multiple platforms to get the most exposure possible. It is important, however, to make sure your inventory stays updated on all sites you have a storefront on. If you want to learn about more resources for selling homemade items, check out this Lifehacker post.

2. Resell something.
If you don’t want to make anything (or you don’t consider yourself a creative person), many business owners have grown large businesses just be reselling products that have already been made. This can be done through a variety of ways or channels:

Drop shipping: Set up an online store and partner with drop-shipping companies that will do all the order fulfillment for you. Online ecommerce platform Shopify has a great drop shipping guide, and Tim Ferriss does a good job of explaining drop shipping in his well-known book, The Four Hour Work Week.
Thrift stores and garage sales: If you know where to look, you can find items at thrift stores, antique shops, flea markets and garage sales and resell them online or in your local community for more than you purchased them for. One extremely successful example of this is Sophia Amoruso, the founder of Nasty Gal. Amoruso started buying and reselling vintage and unique fashion pieces on eBay, and her company has grown to a net income of $24 million in 2011 with over 200 employees. Her book,#GIRLBOSS, is in inspiring look into how she got started.
3. Sell your services.
One way to start a business with little to no startup capital is to sell your services, instead of a physical product. There’s a huge variety of services you can offer, depending on your background and interests.

Related: Starting a Business? When to Scrimp vs. Splurge.

Some will require advanced degrees, such as accounting, while others require little more than a working knowledge of how it’s done (such as babysitting, lawn mowing or personal assistance).

Because you are selling your services, you will need a branding plan to make sure your name and company gets in front of the people who may need the service. Some places that are free for promoting your services include Fiverr, Craigslist, Elance, Taskrabbit and Skillshare.

It’s also useful to have a website to show examples of your work, list your experience, and blog about your industry to draw visitors. If you want to learn more about branding and online marketing, check outBuffer’s social-media blog, Hubspot’s blog, Content Marketing Institute and CopyPress.

4. Barter to get what you need.
Unfortunately, it’s extremely hard to start a business without any type of funds at all. Even creating a freelance-writing business utilizing Elance and a free Wordpress or Wix website will still require a computer to work on as well as Internet. However, there are ways to get supplies you need for starting your business without money.

For instance, if you find yourself in need of a used laptop, try to barter for it. Build a new website for a used electronics supplier, or offer babysitting services to your neighbor for their old Macbook.

5. Utilize low-cost services.
As mentioned previously, you can use sites such as Fiverr or Elance to advertise your products and services on, but you can also use these platforms to build up your own company. For instance, many designers offer $5 to $25 logo designs (that come with free revisions). Sort by reviews and look at past examples to find a designer or service provider that matches your style.

This is a great way to get branding materials, printed items (Vistaprintand Zazzle are great places to buy personalized items), or other needed items without much cost. And for additional savings, be sure to look for coupon codes on sites such as RetailMeNot before checking out at any online retailer!

Starting a business requires ingenuity and a passion for what you are doing. Once you find yourself doing something you enjoy, you will be more likely to find ways to make it all come together.