How to start a business with no money in 20204

When starting a Start Business No Money, finding an idea is half the battle. The other half is funding it.

It doesn’t mean your path to entrepreneurship is over if you have a great business idea but don’t have startup capital. There are plenty of ways to start a business with little or no money.

Ahead, learn how to bootstrap your business with minimal cash. The goal? To start making money, you can reinvest later on. From validating your idea to earning your first dollar, here’s how to start a business with no money.

Eight steps to starting a business with no money

1. Choose an accessible business idea
2. Write a business plan
3. Embrace the entrepreneur community
4. Choose a business name
5. Create a brand
6. Launch a website
7. Validate ideas with preorders
8. Source funding to grow

Choose an accessible business idea

The first stage of starting a new business is developing an idea. If you’re ready to become a business owner but don’t have any personal savings or other funding sources, here are six creative business ideas you can start with no money.

Try dropshipping

Dropshipping is a popular business model for entrepreneurs looking to start a small business with little money. This low-investment startup idea doesn’t require you to hold inventory to sell products. Vendors will only charge you for stock when you sell it, and they’ll try to transport it straightforwardly to your clients.

“As a master’s degree student, I didn’t have much disposable income, so I decided to learn how to dropship,” says Zaid Shahatit, founder of Lighthouse, a workout apparel and equipment store.

To succeed with dropshipping, start by sourcing trending products from a dropshipping supplier. Then, market them to potential clients utilizing natural advertising strategies like site improvement (SEO).

Start a service-based business.

Selling your services is the easiest way to start a business without cash. Whether you have yet to dominate a particular expertise, begin by recognizing what you understand and how to show improvement over many people.

“Since you don’t have the capital yet, start with the things you have, like your experience, knowledge, skills, and resources you own,” says Kei Nishida,  Japanese Green Tea Co-owner.

Package your skills and resources into a service business, such as:

• Freelance writing
• Virtual assistant services
• Social media marketing
• Handyman services
• House cleaning
• Dog Walking
• Personal shopping
• Bookkeeping services

Start a print-on-demand business.

If you don’t have cash to invest in inventory, try a print-on-demand business.

Print-on-demand services will apply your branding and designs to private-label products, such as tote bags or t-shirts, and sell them per order.

“We ​​started with a print-on-demand service, bringing initial operational investment to $0. Essentially, we were just a website to start with—to validate the idea,” says Katheriin Liibert, co-founder of the European clothing brand #muhoov.

Much like dropshipping, starting a print-on-demand business has minimal costs. There are no capacity costs to battle, and you can test the ubiquity of items before putting resources into different types of assembly.

Sell handcrafted goods

Do you prefer a more hands-on approach to starting a small business? Turn your hobby into a side hustle by selling handcrafted goods through your online store and marketplaces like Etsy.

Things to make and sell can include:

• Artwork
• Crafts
• Jewelry
• Skincare
• Woodworking projects
• Handmade clothing

Harry Doull, co-founder of Keap Candles, started his subscription-based candle business using crowdfunding while working a full-time job. Keap quickly grew into a well-known brand, allowing Harry and his business partner to focus entirely on their hobby-turned-business.

Keap Candles began as a crowdfunding campaign, sourcing investment from many followers, many of whom became customers.

A business you start with no money doesn’t have to stay small. Reinvest your earnings into your business and watch it grow. “Most of our profits have been reinvested in inventory and advertising. We’re trying to grow at a healthy pace so that we don’t have to rely on outside investments,” says Francois Mathieu, co-founder of Hojicha Co.

Sell digital products

You can create and sell digital products with little more than an internet connection, making them a solid way to start an online business with no money.

Start with a popular topic, develop some helpful content, and then package your ideas into a digital product, such as:

• Ebooks
• Online courses
• Worksheets or templates
• Photography presets

The beauty of digital products is their scalability. Create a product once, then sell it multiple times on Shopify using the Digital Downloads app. It’s no wonder so many entrepreneurs use digital products to earn passive income.

Become a social media influencer.

 To become an influencer, build your social media presence on a popular platform like Instagram or TikTok. Once you’ve built an account with a few thousand followers, explore these opportunities to make money with no upfront investment:

• Affiliate marketing. Promote products from your favorite brands and earn a commission when your followers buy them.
• Sponsored content. Get paid to partner with brands who want access to your audience.
• Selling merchandise. Add your brand name, logo, or catchphrase to merchandise and sell it in your social media store.

Creator Emma Chamberlain posted videos on YouTube in 2017 and has a considerable following. Two years later, she launched her first direct-to-consumer business, Chamberlain Coffee, to monetize her internet fame.

Creator Emma Chamberlain built an audience on social media before launching her online business. Chamberlain Coffee

2. Write a business plan

A business plan is the blueprint for how you’ll grow your business. The contents of your plan will be unique to your business but should generally include the following:

• Company description. An overview of the company you’re about to start, including the business model and legal structure.
• Business model. Decide if your business will be an LLC, C corp, S corp, B corp, or sole proprietorship.
• Market research. Include demographics that your target market shares. For example, will you sell directly to the consumer or via wholesalers? How does this compare to competitors?
• Products and services offered. You’ll make money by selling one of these. Please explain the product or service and why people will buy it.
• Marketing strategy. Explain how you will promote your business to reach your target market through social media, advertising, or email marketing.
• Logistics and operations plan. How do you intend to get your product or service into the hands of your paying customers? This could be dropshipping suppliers, third-party logistics companies, or mailing items yourself.
• Financial plan. Detail how you intend to make and spend money. Include your financial needs, costs and expenses, balance sheet, and cash flow projections.

Free: Business Plan Template

Business planning is often used to secure funding, but plenty of business owners find writing a plan valuable, even if they have yet to work with an investor. That’s why we put together a free business plan template to help you get started.

3. Embrace the entrepreneur community.

Many entrepreneurs start their businesses with little more than pocket change. Finding a community of self-made businesspeople can unlock valuable free advice on how to make your business work on a budget.

Find other entrepreneurs by:

• Attending networking events
• Signing up for virtual and in-person conferences
• Joining online networking groups
• Finding a business mentor

4. Choose a business name

The next stage in starting a business is choosing a name. Your name should be catchy and recognizable, and, most importantly, it still needs to be taken.

Remember: Your name will serve you throughout the business’s lifetime. Make sure it’s one you love, and that doesn’t limit your ability to scale and pivot in the future.

Once you’ve found a business name you like, secure matching online assets such as:

• A domain name. For example, BRAND.com
• Social media handles. For example, facebook.com/BRAND

Business name generator

Use Shopify’s free tool to find a fitting name for your next business

Create a name

5. Create a brand

You’re one step closer to building a brand now that you have a business name.

However, a brand is more than a name or logo. Branding encompasses the following:

• Brand values and mission statement
• Brand aesthetic, including color palette and fonts
• Photography style
• Brand voice and tone
• Hiring practices
• Brand story

As a business owner, your brand guidelines will help inform your business strategy as you grow. A strong brand guides your social media marketing efforts, hiring practices, and communication style. You can create a brand without money using free resources like Shopify’s logo maker.

6. Launch a website

While it’s possible to run your business entirely on social media, an essential website serves as a destination for online visitors and a hub for your products and content.

You can build a complete website with professional features, such as themed product pages, a checkout, and a blog, for as little as $29 per month. Use it to educate potential customers about your products and brand.

If you want to sell online but don’t need to build an entire store, the Shopify Starter plan costs just $5 per month. It comes with enhanced selling features for TikTok, Instagram, and other social media platforms—and the ability to make sales through email, SMS, and in person.

7. Validate ideas with preorders.

If you don’t have the startup cash to fill a stockroom with inventory, you can run your business using a preorder model. Taking preorders allows you to collect upfront cash before signing off on production. It’s also a great launch strategy for building hype around a new brand.

While working full-time, Remi Martins had the idea for Natural Girl Wigs and created an Instagram page to showcase the products she wanted to sell. “I got feedback that people are interested in the product, and there was a market for wigs specially made for natural hair lovers,” she says.

Remi developed her product with a hairstylist and launched it through preorders. “We sold 50 products in the first 60 days of the business,” Remi says. “I eventually invested $1,000 in the business to purchase inventory and do marketing.”

8. Source funding to grow

You can reinvest the profits once you’ve validated your business idea and started making money. You may also apply for small business loans, seek out angel investors, or run a crowdfunding campaign.

If your small business fails, the most likely reason will be cash flow issues. That’s why many entrepreneurs look for extra startup capital—money they can invest in inventory, marketing, or hiring their first employee.

Options to fund your new business venture include:

• Shopify Captial. Shopify’s lending feature helps stores boost cash flow and keep bestsellers stocked.
• Small business loans. Get more significant money through a lender toward payroll, inventory funding, or marketing.
• Capital investors can take of angel investors or venture capitalists. Both give money to private companies in return for a value stake.
• Small business grants. These are one-off lump sums of money given to small businesses with specific criteria. Most small business grants don’t need to be paid back.

Alicia Ho started her photography business, Precious Ones Photography, with $0 after her hobby of taking photos of her children garnered attention. “Friends and family took notice of my work, and I began taking on clients and making a small amount of money,” says Alicia.

When she was ready to scale, Alicia found a local non-profit organization that offered loans and scholarships for young entrepreneurs. “It was the best step forward for my business,” she says.

Conclusion

If this guide teaches you anything, let it be this: You don’t require forthright money to begin a business. Numerous business visionaries have made effective organizations without preparation—frequently without external financing. A great idea, commitment, and an entrepreneurial spirit will get you further than you think.