Do you have a great business idea but lack the money to pursue it? This is a problem many business owners face.

Fortunately, you don’t need to have a ton of cash on hand to become an entrepreneur. We’ve put together a list of ideas of businesses you can start without any money at all.

We’ll walk you through how to start a business without money, then we’ll give you some insider tips to make the process even easier. Finally, we’ll close with some frequently asked questions about starting a business with no money.

Keep reading or click on any of the links below to jump to the section that interests you:

How can I start my own business with no money?

Every business requires money at some point. But if you’re creative, you’ll figure out how to start a business with no money, then pay for things as you go.

If you have money tied up in a home or a 401(k), it makes it easier because you can use those assets to secure your business funding. However, you’ll also be putting your future at risk if you choose to follow that route.

Find a Business Idea to Start With No Money

Before we explain how to start a business with no money, you need to come up with a business idea. Let’s discuss some of the most popular types of small businesses to start with little or no money.

Idea #1. Dropshipping and Print on Demand

Dropshipping and print on demand are both online selling strategies where you market products without having to maintain inventory. When someone orders from your online store, a third-party supplier will ship the actual items. With dropshipping, the products are already manufactured, but print-on-demand products are made after the customer orders.

Effectively, when a customer pays retail price, you receive all the money and pay the wholesaler for the product which they ship to the customer. Margins are typically pretty thin compared to some other businesses, but you can focus solely on marketing.

Bobby started IonBottles without any money, so he’s the perfect person to explain how to start a business with no money. Today, he’s making nearly 80% margins on $150K to $200K in monthly revenue.

Idea #2. Service Businesses

You can start a service business like a cleaning company, lawn company, or home organizing business with supplies most people already have at home. You might also consider photography if you have a camera laying around. Alternatively, you can book jobs, then rent the equipment you need.

Check out how Brandon Vaughn started his epoxy business. It’s making more than $500K monthly after just a couple years:

Want more service business ideas? We compiled a list of the best service businesses to start.

Idea #3. Online Businesses

You can start an online business as long as you have an internet connection and a computer (or phone in some cases). Online businesses like affiliate marketing, online advertising, content marketing, and social media management are great businesses to start with no money.

Freelancing is another great alternative. You can offer services such as freelance writing, social media management, and tutoring. None of these require much money upfront.

Find out how David Park created Jenni.ai and turned it into a $30M business:

Check out our blog about online business ideas to find other opportunities.

Idea #4. Digital Products

Creating and selling digital products is a great way to start a business with no money. Just do some research on the products that tend to sell best and duplicate them while adding your own flare to them.

Online courses, templates, and cheat sheets tend to be high-performing digital assets. This low-cost business model is easy to start on a site like Etsy.

Idea #5. Handcrafted Goods

Creating candles, baked goods, or other handcrafted items is another great way to make money with little upfront capital. You’ll want to look at what materials and tools you have at home before you start a handcrafted business.

Find out how Jen and Jocelyn Edmonds started their candle business Rx Candles out of their garage with just $100.

Want more ideas? Check out our craft business ideas.

Now that you have a few ideas, let’s take a closer look at how to start a business with no money.

How to Start a Business With No Money

After you’ve decided what type of a business you want to pursue, you’ll need to actually get started. Starting a business with no money requires some creativity, but if you follow the process below, it will be easier:

1. Do market research.
2. Validate your idea.
3. Write a business plan.
4. Find free resources.
5. Choose a business name.
6. Create your brand.
7. Launch a website.
8. Find customers.
9. Provide stellar customer service.
10. Ask for referrals and reviews.
11. Get small business loans

Step #1. Do Market Research

You’ll want to start by doing market research to understand the target market. Establish whether your products solve a problem and how much that’s worth to people. Some types of market research include focus groups and competitive analysis.

In addition, you’ll want to define buyer personas and prepare questions for your target market. It’s also a good idea to create a list of competitors and what they do.

When you’re researching your target market, find out which online communities are best to reach your audience and educate potential customers. The current most effective tactic is using TikTok, YouTube, and other social media platforms to reach potential customers at a low cost.

Step #2. Validate Your Idea

You’ll want to follow a process like the one below to validate your business idea:

1. Document your proposed strategy.
2. Identify the target market.
3. Create tests.
4. Get input from the target market.
5. Analyze the results.
6. Revise assumptions if necessary.
7. Accept or reject your initial assumptions.

Paul Akers, the founder of FastCap, explained how to find out if something will make a successful business:

Check out our Interview with Paul Akers to learn how he finds ideas and validates them:

Step #3. Write a Business Plan

Trying to start a successful small business without startup capital is going to be different than pursuing a new business venture with available funding. The entire process will be focused on keeping costs low. Your business plan should specify the following:

• Company overview
• Target audience
• Business model
• Legal structure
• Business model
• Financial plan (e.g., start-up costs, expenses, and expected cash flow)
• Marketing strategy

For a more detailed business plan, read our blog on how to write a business plan. We discuss things like cash flow projections and provide you with a free business plan template.

Step #4. Find Free Resources

Low-cost resources are essential for aspiring business owners who want to start a business with no money. You can find free software for almost every aspect of business.

Start with a free Wix site and Gmail account, then go from there. Don’t forget to sign up for social media profiles.

Check out PCMag’s blog on the best free business software. Other things you’ll spend money on like equipment or supplies will vary based on your business plan.

Step #5. Choose a Business Name

You’ll want to choose a business name. It should be memorable and easy to spell. Once you have a name in mind, make sure it’s available as a domain, social media handles, and trademark.

Don’t worry if you don’t have the money for all those now. You can buy the domain, register the name, and trademark it later.

Try our free business name generator to get ideas. The generator will also tell you whether each name is available as a domain.

Step #6. Create Your Brand

You’ll want to create branding and marketing materials to help your new business stand out amongst business ventures. Think about your business name and the style of communication you use with your target market. Then create a guide for how to keep your branding consistent.

Remember to focus on both social media marketing and other ways of letting people know about your business venture. A service-based business owner will probably want to invest in business cards and other print materials.

Step #7. Launch a Website

Every business should have a professional website. It can be a basic one-page site at first that gives the essential information such as your services, locations, and contact information.

As you get money, you can upgrade your website to a more advanced setup. Learn how to build a website.

Local businesses should also set up a Google Business Profile (formerly Google My Business). You’ll want to request reviews on there and add the reviews to your website.

Step #8. Find Customers

Your goal in this stage is to find customers without spending a bunch of money on ads. You’ll want to start by talking to your family and friends to see if they need your services. You can even do it for free to get some experience and a great review.

Many small business owners go into local Facebook groups and post their offers. Just make sure you aren’t violating any rules.

As you grow and can afford ads, start using paid search and social media ads to help your business grow faster.

Step #9. Provide Stellar Customer Service

Providing quality service is the key to building a positive company reputation. You want to keep your customers updated every step of the way. Small things can make a huge difference.

As examples, I’d like to provide two experiences that just happened to me:

1. A local service company came to do some work on my plumbing. They didn’t call or text before they came, and they showed up late. They weren’t prepared for the job. I thought they were going to no show, but a simple text would have fixed that.
2. A company creates products for the wedding industry and it takes six months to create them. I received two emails during that time: a thank-you for purchase and an email when they were ready for us to approve the design. Given the process is seven steps, I would have liked to see when they moved on to each step (which you can do with free email automation tools).

It’s simply a matter of doing what you say you’ll do, being on time, and verifying that everything is to the customer’s satisfaction. Using automation will make this easier as you grow, but at the start, you’ll have to do it manually.

Step #10. Ask for Referrals and Reviews

When you first get started you’re fully relying on word-of-mouth marketing. That means when you’re done with a job, you need to remember to thank them for choosing your business, provide them with a business card, and tell them that referrals and reviews are greatly appreciated. Then make it easy for them to provide one.

Step #11. Get Small Business Loans

You’ll be able to qualify for different types of small business loans as your business grows. Equipment loans and revenue-backed loans are often the easiest way to get loans, but they come with higher interest and you can lose the equipment if you fail to pay.

Once you meet minimum revenue and credit thresholds, it’s much easier to get a business loan using all kinds of strategies. Find out how to get a $100K business loan.

Tips for Starting a Business With No Money

Now that you know how to start a small business with no money, we’d like to provide some tips on how to make the start-up process easier. The following sections are meant to help you be more successful with your new small business while you have little money.

Start a Side Hustle

Keeping your day job while starting a side hustle makes it easier to fund business needs, even if it’s smaller growth. For instance, pressure washing expert Joshua Brown told us:

Avoid High Upfront Costs

Mike Andes told us that high upfront costs are a huge barrier to entry. He explained:

Check out our interview with Mike below:

Level Up Your Skills

Starting a business with no money means you’ll have to do everything at first. That means you’ll need to spend time learning things through the school of hard knocks.

Set aside at least two hours a week to develop your skills. We also offer a 10-day free trial to UpFlip Academy where you can learn about start-up strategies, Google Ads, and more.

Provide the Service Before You Form Your Business

You’re allowed to make $600 from a side gig without reporting money to the IRS. That’s enough to register your business, so start reaching out to people you know to spread the word about your products and services.

Once you know you can do the work and create satisfied customers, go ahead and start your LLC and get other licenses. If you don’t want to pursue it anymore, try another business idea instead.

Build Your Network

Get some business cards and take them with you everywhere you go. You have to tell everyone about what you do.

There are lots of free entrepreneur meetups in most towns. You never know where you’ll meet the person who changes your life, so get out on the town and start meeting people and sharing your story.

Create a Savings Plan

Almost everyone has a little extra money they can save if they just put their mind to it. Look for wasteful spending and eliminate it.

Open a separate bank account to save money, and start depositing as much as you can into it. Your bank may have the option to set up automatic transfers. Most professionals suggest saving between 8% and 15% of your income.

Look for Alternative Funding

If your business needs more than you can pull together, there are plenty of sources other than small business loans. Some of the ways to raise money together include:

• Family and friends
• Business partner
• Crowdfunding
• Angel investors
• Venture capitalists
• Keeping your full-time job

Adam Callinan, the founder of Pentane and BottleKeeper, used crowdfunding to establish whether BottleKeeper was a legitimate business opportunity. Learn more below:

Frequently Asked Questions

What is the easiest business to start with no money?

House cleaning and landscaping are two of the low-cost businesses that are easiest to start. There are plenty of other businesses that are easy to start, but most people will already own basic cleaning or landscaping equipment.

What is the cheapest, most profitable business to start?

According to the UpFlip Academy business ideas database, the most profitable business you can start with under $5,000 is a bookkeeping service. Bookkeeping has an average startup cost of $3K and a profit margin of 14.2% profit margin. However, it requires at least a bachelor’s degree.

Most online businesses also have the potential to reach these profit margins, but many of them fail. Consider starting a cleaning business if you want to start a local service business. There’s high demand and an ongoing need for cleaning companies even during economic downturns.

How to start a business with $100

When you have exactly $100 to start a business, you should spend it on the following essentials:

• Web hosting: $59.40 (for the first year with Bluehost)
• Google Workspace: $6 per month
• Equipment: $35 to get the bare minimum to perform the work

Do I need a license for my business?

Yes, you should have a business license. Some industries require additional licenses and certifications if they’re highly regulated.

Can I have a business and be a full-time employee at the same time?

Yes. Many people start their business as a side gig, grow until it makes enough money to replace their job’s income, then quit their job.

What is the best business structure?

Most small business owners consider a limited liability company (LLC) that opts in as an S corp for the tax status to be the best business structure long term.

However, that isn’t the cheapest way to start a business. Some states allow a sole proprietorship to operate for little to no cost. For instance, Nevada has a free sole proprietorship with a $10 cost to establish a business name.

Closing

While starting a business with no money has a higher learning curve, people do it all the time. You just have to keep with it and reinvest profits. Eventually, it will grow to a level that can support you.

If you have a specific type of business in mind, check out our other blogs, YouTube videos, and podcasts. We ask every business owner about how much they started their business with and what they would recommend for people who don’t have a lot of money to invest.