How To Start A Business Without Money

If you want to start a business but you’re short on funds or have bad credit, there are options available for you.

In this post, we’ll show you how to start a business with no money. We’ll guide you through the different loan options available so you can choose the best small business loan to get your great idea off the ground.

How To Choose A Free Business Idea

The best way to start a business with no money is to pick a business idea that doesn’t require a lot of cash.

Some of the most popular business ideas are side hustles that can be started with little (or even no) upfront investment, including:

• Service-based businesses (house cleaning, virtual assistant work, freelancing, etc.)
• Dropshipping
• Print-on-demand
• Handcrafted goods
• Digital products
• Social media influencing
• Affiliate marketing
• eBay (or other platform) reselling

Consider your skills, interests, and how much time you have to invest in your business before choosing an idea.

How To Calculate Expenses For Your New Business

While it’s possible to start a business with no money, most businesses require at least a little capital to start.

While expenses vary based on your business model, here are some costs to consider — either now or in the future:

• Inventory & supplies
• Rent or lease for a business space
• Equipment
• Marketing & advertising
• Hiring & training staff

Once you have a basic idea of your costs, it’s time to move into the next stage: finding funds for your business.

What Funding Is Available To Start A Business With No Money?

There are several funding options available to help you get your business off the ground with no cash.

Small Business Loans

Before diving into specifics, here’s a quick breakdown of some of the most common types of small business loans.

Small Business Grants

Grants provide businesses with funding that doesn’t have to be repaid. However, grants are highly competitive, finding grants you qualify for can be difficult, and grant application processes can be time-consuming.

While there are some drawbacks (and no guarantee of funding), grants can be a great source of capital for innovative new businesses.

Crowdfunding

If you’re willing to put in the work, crowdfunding has the potential to help you score the capital you need to launch your business.

There are several crowdfunding options, including:

• Donation-based: Investors give donations without receiving anything in return
• Equity-based: Investors give money in exchange for ownership of the business
• Rewards-based: Investors give money in exchange for some type of reward (i.e., a free or discounted product at launch)

Keep in mind that you will have to meet the criteria (and possibly pay fees) of crowdfunding platforms. Once accepted, you’ll have to create and launch your campaign, as well as effectively promote it to potential investors.

How To Start A Business With No Money And Bad Credit

Funding your business venture can get a little complicated if you have no money and bad credit. Fortunately, there are some steps you can take to get the funding you need.

First, check your credit score to find out where you stand. If your credit score could use improvement, you can take simple steps like paying your bills on time, disputing erroneous information on your credit report, or building your credit with responsible use of a business or personal credit card.

Building your credit can take some time, but it’s worth it for the low rates and high borrowing limits you’ll unlock with good credit.

However, if you don’t have time — and you’re okay with shorter repayment terms and higher rates — there are funding options you can try now. No credit check loans are one solution. You can also explore the best business loans for bad credit for additional options.

The Bottom Line On Starting A Business With No Money

Hopefully, you now have some ideas for how you can start your business with no funding. Bad credit can’t stop you from achieving your dreams of starting your own small business, either.

We encourage you to keep researching alternative financing for your small business. Don’t let seemingly impossible obstacles stop your journey. Do your research, assess your options, and choose the solution that’s the best fit for your future business. Good luck!