How to Start a Business With No Money

If you want to start a business, but have no money to cover the startup costs, don't despair. With a little creative thinking you can raise the necessary funds and have your business up and running. Here are some ways to find the necessary money to start your business:

  • Use credit cards.
  • Borrow from friends and family. Remember to be professional and put everything in writing.
  • Find a partner who has money to start the business with you.
  • Apply to the Small Business Administration and other government programs for help with funding. There are special financing options available for women, veterans and minorities.

[source: Entrepreneur].


Here are some ways to keep your expenses down when starting a business with no money:

  • Start a service business, so you won't have to lay out a lot of money for product [source: Smith].
  • Produce on demand. Collect your customers' fees up front for a product or service you will provide later down the line. Then you'll have money with which to procure the product or service. [source: Smith]
  • Don't keep any inventory. If you're selling a physical product, have the manufacturer ship the product directly to your customer. This will save you on storage as well as on shipping.
  • Don't hire people to do something you can do yourself. Get free legal advice online, learn how to prepare your own financial statements and use a free website to design your own logo. [source: Armstrong]
  • Don't be a perfectionist. Get your business off the ground. When you have the money, you can spend it making everything perfect.
  • Hire contractors instead of employees. You only pay contractors when they work for you, and they won't need space in your office. [source: Camusio]
  • Barter your own skills and services for products you need.
  • Don't incorporate, insure or bond your business until you get it off the ground.
  • Don't quit your job until your business starts making money.