business plan with no money

7 Steps to Successfully Start a Business With No Money

Karoki Githure

11 min. read

Updated October 29, 2023

Have you been wondering how you can start a business with no money or experience? You’re not alone. Many people, just like you, dream of getting into the self-employment world by owning a business. You may even already have a good idea in mind. 

Unfortunately, some people end up completely putting off their ambitions. Where most people lose interest is when they realize that it takes money to start a business. But, is it really impossible to launch a business without any startup capital? The answer might surprise you.

Can I start a business with no money?  

Yes, you can start a business with no money. You just need to be strategic and patient in your approach. Before you dive into the startup process, here are a few things you should do first.

Keep your job 

Don’t get carried away by your business idea and immediately quit your job to start a sole proprietorship. Be realistic about your life and willing to compromise in other areas. You can run the business in your spare time, on weekends, holidays, or after work. 

Your job will ensure your livelihood isn’t relying on the success of your business. Besides, you can save your business’s profits to fund costs that might arise as the business grows. Keep doing what you’ve been doing for a living with the aim of working hard and smart on your business. You can decide to leave your job when the startup can pay you.

Tap into free resources 

Analyze what you need to run your business, and what the gaps are in your own abilities. Then, all you need is an internet connection to start searching for small business resources . 

Whether you need to fully outline your business structure, write a business plan, create a marketing plan, research licenses and permits, or even register your business—there’s likely a free template, tool, or article out there for you to check out. 

You can also use free trials for paid business tools. This will give you an idea of the overall functionality and help you determine if it’s worth eventually investing in. 

Network, network, network 

With limited monetary resources to start a business, you can invest your time wisely by forging the right networks. Get to interact with businesspeople in your respective industry. You’ll learn a lot from entrepreneurs on the same journey as you. 

If it’s a unique business, still network with other entrepreneurs. Other people have been down a similar road before. You can learn what it takes to run a successful startup.

Seminars/webinars, events, conferences, social media groups, or online forums can play a huge role. Joining a local SCORE or SBA community group can keep you updated on workshops and events near you.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

• How to start a small business with no money

You’re likely still asking yourself, “so how can I start my business with no money?” Work through this seven-step process to go from idea to full-fledged business with little to no funding.

1. Identify your business idea 

The foundation of a business is based on strong small business ideas. It’s only natural that identifying your business idea is the first milestone in your entrepreneurial journey. Start by brainstorming and writing down your potential options. Pay attention to how you can be of service by offering a solution.

Analyze the ideas you have. How passionate are you about them? What talents do you have? Would your skillset make it successful? 

Is there anything your family, friends, or colleagues say you’re good at or come to you when facing a particular problem? Narrow down to the one that stands out and catches your interest.

Below are some pointers that can help you find your business idea:

• Examine your marketable skills or experience that can be turned into a business.
• Analyze existing businesses’ unmet customer needs so that you can fill in the gap.
• Is there a product/service that you wish existed?
• Look for ways to add value to existing products/services
• Look at existing products and services think about how to improve or add value to them
• Investigate other markets to see whether your products/services are much needed there.   
• Perhaps you saw a product/service somewhere else, and it’s not available locally.

2. Conduct market research 

Understanding the market is invaluable in determining your business idea’s potential in the real world. So, once you have an idea, start conducting thorough market research on the industry your business idea aligns with. This will give you an idea of the overall market landscape and how your business might perform.

Identify your potential competitors and what they are up to. Your main aim is to determine whether you have a more innovative, better, and cost-effective way of doing things. By studying your competition, you’ll find out whose business idea has holes. You can also figure out a unique selling point.  

In addition, research your potential customers. Understand their occupations, age, education levels, and locations. Study their current buying habits and whether they’re willing to pay more for better quality products/services.

You can go through online reviews of similar types of businesses. Also, conduct a poll survey through social media groups. Post a questionnaire in the groups your potential customers have joined. 

Talking directly to potential customers can shed light on areas where their needs aren’t fulfilled. The information you gather will help you understand the target customers’ types of purchasing habits, needs, and preferences.

3. Create an MVP and test your idea 

Whether you’re selling a product or service, testing the idea with no cost or the least cost possible is advisable. A minimum viable product (MVP) is a new product with core features to test its viability in the market. The purpose of an MVP is to see the early customers’ experience with the product and use the feedback in further developments.

One way can be conducting a crowdfunding campaign. If they’re interested in investing after using the product/service, then that’s a good indication that the business idea is worth pursuing. Even if you don’t get the funding, their feedback will guide you on which areas to improve.

Tap into the power of social media. You can create a post, page, or short video about your product/service, share it on social platforms, and see how many people are interested. Their interaction, such as preorders, comments, views, shares, or reactions, will indicate something about your idea.

You can create a website for your product/service and check website metrics. Use low-cost or free websites and web analytics tools available. Include an option for email signups/preorders for more information to gauge their interest. Some of the basic metrics are session duration, traffic source, number of visitors, average time on page, etc.

You can also do it the old-fashioned way and offer your services in your neighborhood for free. Inform them about your business and ask for their honest review of your performance. 

Keep in mind that your intention is to determine whether the idea is viable or not. If things don’t go as you had hoped, take the feedback as a step closer to your dream. Use it to reflect on what areas to improve on or if the idea isn’t worth pursuing at that time.   

4. Develop a plan 

You’ve learned a lot about what you’re getting into by this stage. Based on the information you’ve gathered, it’s time to outline your business’s current and future goals. You need to have a business plan to organize the direction of your business.

If you don’t know how to write a business plan , use this free online template . Bear in mind that it will be your resource in starting the business. So make sure it’s a short and actionable plan. However, include your statement of business operation, product/service description, and market analysis. 

A good business plan also helps you set short-term and long-term goals as well as eventual startup costs. It will be a roadmap on your next steps, keeping expenses low, and whether to invest more capital or pursue funding.

5. Set up a payment method 

Be ready to receive payments any time an opportunity arises. You don’t want someone to agree on buying your product/service and the chance passes you by or is delayed as you figure out how they should pay you. So, set up how you’ll receive payment before becoming operational. 

When deciding which methods to use, compare their price, features, flexibility, security, and functionality. The best fit for your business depends on several factors such as the size of your transactions, popularity, customers’ preference, and age, among others.

Cash payment is the fastest, easiest, cheapest, and most widely used method. It can work well with minors as well as adults. In the case of an online business, cash payment can only work in pay on delivery setup. 

However, it comes with cons such as theft and cash mismanagement. Also, you can’t rely on the cash-only method at this age. There is a higher chance of inconveniencing your customers. It’d be better to combine two or more methods depending on the size and nature of your business. 

Online payments work very well for online businesses. Debit and credit cards are ideal for in-person and online payments. Mobile payments have become very popular and widely used. Payment through checks is also another option. 

Just keep your customers in mind. The younger generation might not have cash or checks. If your clientele skews a bit older, they may be unsure about modern fintech payments. 

6. Focus on organic communication 

Another critical aspect of starting a business with no money is spreading the word about your product/service to your customers. You obviously don’t want to invest a ridiculous amount of money in your marketing efforts. So, it’s best to focus on organic options as part of your initial marketing strategy. 

Create a website

Launch a business’s website and utilize free SEO tools to research invaluable keywords in the industry. Use your results to create optimized product/service, about us, FAQs, and contact/sales pages. For instance, putting your physical address on the contact page is a good way to rank in search engine results when someone conducts a regional search.

Make sure your website has a blog section where you publish optimized content regularly. Take advantage of free content marketing courses to hone your skills. Similarly, free digital marketing courses can teach you which method works depending on the business.

Tap into social media

Social media has become part of our daily lives. Create social media pages that favor the nature of your business. For example, Instagram is a better tool than LinkedIn for clothes designers since it’s suitable for sharing photos. 

Use social media posts to drive traffic to your website or online shop. Respond to the comments written by your customers and also participate in social groups or forums. This is a great way to start building an audience and engagement naturally. Just keep in mind, that it will take time and effort to maintain.

7. Explore funding options 

If your business reaches the point where you need funding or extra capital for growth, it’s time to explore your funding options . If you have enough savings, you can inject that into your business. However, if that’s not the case, consider other funding options.

The most traditional and obvious option for small business owners is to apply for a bank loan. However, it’s also worth exploring grants from federal, state, or regional agencies. There may even be private grant options from larger organizations. These are typically grant programs that cater to specific demographics such as minorities, veterans, etc.

Not interested in traditional funding? Leverage crowdfunding sites to raise funds in exchange for the product/service, debt, or the purchase of small shares in the idea. The ideal stage for crowdfunding can be the testing phase. 

Friends and family are a common source of financing too. However, be professional and agree on a payment plan to avoid ruining your relationship.

If you’re in more of a startup environment, angel investors and venture capitalists may be your best option. These are primarily used by businesses looking for quick funding in exchange for ownership equity, royalty payment, or convertible debt. 

From starting to growing your business 

The amount of starting capital doesn’t determine the success of a business idea. In the initial stages of executing your business idea, it’s best to stay lean and avoid unnecessary expenses. However, as the business grows, there comes the point where that can’t be done anymore. 

Planning for such occurrences is beneficial to ensure your idea doesn’t grow due to the lack of funds. If you’re willing to do the right thing to ensure your business runs smoothly, you’re on the right track. So, if you’re deadset on starting a business with no money, check out our startup guide for a more detailed step-by-step method to start a business.

Clarify your ideas and understand how to start your business with LivePlan

Karoki is a freelance content writer and blogger with experience writing about entrepreneurship, business, freelancing, and self-development. Apart from writing, he loves a little bit of adventure and creating beats/instrumentals on his digital audio workstation (DAW).

Table of Contents

• Can I start a business with no money?  
• From starting to growing your business 

Related Articles

17 Min. Read

How to Find a Mentor

12 Min. Read

The Best Free Apps and Online Tools for Entrepreneurs

8 Min. Read

Potential Pain Points When Starting a Small Business

4 Min. Read

Is It Too Late to Start a Business?

The Bplans Newsletter

The Bplans Weekly

Subscribe now for weekly advice and free downloadable resources to help start and grow your business.

We care about your privacy. See our privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

How To Start a Business With No Money in 10 Steps

Maybe you’ve heard the saying “It takes money to make money.” But what happens when you don’t have much of it to begin with?

While the above statement is generally true, it’s not as black and white as you might think. You absolutely can start a business with no money—as long as you have some patience, resourcefulness, and savvy. The capital you need at the beginning will also depend on the type of business you’re trying to start.

In this article, we’ll explore some of the best low or no-capital business ideas, how to create and launch your own business, and how to generate the funding you need to grow.

Start selling online now with Shopify

1. Find low-cost business opportunities

Of course, some business ventures will require a lot more money upfront than others. We’ve put together a list of ideas that require little or no capital. Hopefully one of them will get your gears turning.

Create a service business

Do you have certain skills, talents, or specialized knowledge that you can capitalize on? What about things you wouldn’t mind doing for a living? Try selling your services. Here are a few ideas:

• Freelance writer, if you have good grammar and a knack for putting words into text.
• Social media marketer, if you can build and execute a marketing campaign.
• Virtual assistant, if you’re organized, detail-oriented, and moderately tech savvy.
• Handyman services, if you’re good at fixing things.
• Less specialized services, like house cleaning, dog walking, or car washing

Sell handmade goods or digital assets

On the flip side of a service-based venture where you’re selling your skills, consider a business where you sell the physical fruits of your talents. Maybe you’re a seamstress, a furniture flipper, a woodworker, or a candle dipper.

You can also sell digital assets , like ebooks, online courses, and templates or workbooks.

There are plenty of places to sell these items, like Etsy , Amazon Handmade , or Facebook Marketplace (just to name a few). You can also create your own online store on an ecommerce platform like Shopify , though keep in mind that you’ll need to pay a small monthly fee for your store.

Launch a podcast

Consider starting your own podcast. It’s a fantastic way to share stories, insights, or expertise on topics you’re passionate about. From true crime to health, tech, or personal development, there’s a niche for nearly every interest. Initially, all you need is a decent microphone and free recording software to get going.

Once your podcast gains traction, you can explore monetization through sponsorships, listener donations, or even selling merchandise related to your podcast theme.

Start a dropshipping store

Want to start an online business but don’t want to deal with manufacturing, storing, and shipping your own products? Dropshipping is the answer.

In this business model, you source your products from manufacturers. When one of your customers places an order, you submit the order to your manufacturer, who handles all the shipping and sends the package directly to your customer. You never need to handle your own inventory.

Check out all the dropshipping apps available through Shopify here in the Shopify marketplace .

Start a print-on-demand store

Print on demand is technically a form of dropshipping, but it deserves its own section. With print on demand, you offer pre-made designs that can be printed on various items, like t-shirts, coffee mugs, phone cases, tote bags—you name it.

When your customer places an order through your website, you’ll send the order to your print-on-demand manufacturer, who will print the items on the spot and ship them directly to your customers. No handling inventory.

The Shopify marketplace has plenty of options for connecting with print-on-demand services . When it comes to designs, you can purchase pre-made designs, make your own if you have design skills, or hire graphic designers from sites like Fiverr or Upwork .

2. Write a business plan

While not all businesses have a business plan , this can be an important step for having a clear, linear outline you can follow and hold yourself accountable to. It’s also necessary if you’ll be looking for funding now or down the line—investors will want to know your business model, goals, and how you plan to achieve those goals.

Here are some things to include when writing a business plan for your new business venture:

• Company overview. A brief description of the business you’re planning to start, including the legal structure and business type.
• Business model. Decide whether you’ll incorporate an LLC, sole proprietorship, S corp, or C corp.
• Products and services offered. Detail what you’re selling and why people would want to buy it. Whether it’s a tangible product or a service, explain its value proposition.
• Market research. Identify your target market’s demographics. Consider if you’ll sell directly to consumers or through wholesalers, and compare this approach to your competitors’.
• Marketing strategy. Outline your plan for reaching your target audience. Will you leverage social media, engage in online advertising, or use email marketing?
• Logistics and operations plan. Describe the process for getting your product or service to your customers. Are you looking at dropshipping, partnering with third-party logistics, or handling fulfillment in-house?
• Financial plan. Present a comprehensive view of your financial strategy. This should include your funding needs, projected costs and revenue, cash flow projections, and a balance sheet.

Check out this business plan template for a step-by-step guide.

3. Create a brand

Now that you have a business plan, it’s time to start building your brand.

Here are the essentials you’ll need:

• Business name. Something catchy, descriptive, and ideally unique.
• Brand story. Who are you, what do you stand for, and what makes you stand out? Weave all aspects of your brand story into your branding and marketing materials.
• Logo. Make it eye-catching and interesting, but don’t overdo it. Simple and clean is always a good way to go. Try Shopify’s logo maker .
• Brand style. Create a “brand book” that outlines your brand’s color palette , fonts, imagery style (photography, illustrations, visual styles, etc.), and tone of voice.
• Marketing assets. Now that you have your basics, make sure you keep everything consistent across all of your assets, from your website to social media platforms to online ads to print materials like posters and business cards.

As a business owner, establishing your brand guidelines is essential. These rules steer your social media strategy, influence your hiring decisions, and define your communication style. You don’t need a large budget to create a powerful brand presence. With free resources like Canva for design and Shopify’s logo maker, you can build your brand at no cost.

4. Build a website

Starting a business from scratch has been a wallet-friendly process so far. But let’s be real: building a website is a smart move. Your website will serve as the virtual hub for your new venture—a space to showcase your offerings and educate potential customers about what you have to offer.

If cash flow is an issue, you’ll be glad to know that Shopify’s Starter plans cost a mere $5 per month after the initial free trial. For such a small cost, you’ll get the tools you need to create a professional website and make your first sale.

5. Validate ideas with preorders

Starting a business from nothing is a journey of trial and error. You might have some winning ideas , while others might fall short of your expectations. But, there’s a simple way to reduce the risk of failure and still get cash flow: preorders .

For example, let’s say you have an idea for a new line of sneakers. You want to execute it, but you’re not sure if the product will sell enough to cover your investment in inventory. So, you offer preorders for your shoes. You create hype and buzz by posting photos and videos on social media and explaining the eco-friendly materials you use. Customers can order the shoes before they’re available in stores.

The result? You get cash upfront to invest in production, a sense of exclusivity is created, and you can test the waters before jumping in headfirst. Customers love preorders because they get to try something new before the rest of the crowd and feel like they’re part of a select group.

6. Seek funding to grow

According to research, nearly a third of small businesses fail because they run out of cash. To avoid this, entrepreneurs can seek out startup capital to invest in inventory, marketing, or their first employee. Options include:

• Crowdfunding. This involves collecting small amounts of money from a large group of people. Platforms like Crowdfunder , SeedInvest , and Kickstarter offer investment opportunities to regular people in exchange for perks such as pre-orders or equity.
• Personal loans. You may also seek financial support from friends and family through personal loans. These supporters may be willing to offer you a loan in return for a small equity stake or an interest-based return.
• Small business loans. For larger funding needs, consider using alternative lenders, such as Shopify Capital . These lenders offer cash to fund inventory sourcing, payroll, and marketing, enabling you to scale your business fast. You can quickly estimate your possible loan repayments with a business loan calculator .
• Capital investors. Angel investors and venture capitalists offer cash to small businesses in exchange for a share of the company. It’s a way to get significant funding and expertise without taking on traditional debt,
• Small business grants. These are cash gifts for businesses that meet specific criteria. They boost your finances without the need to repay, making them an ideal source of funding.

7. Do a soft launch

A soft launch is your chance to test your business on a small scale. Start by introducing your product or service to a limited audience, maybe in your local area or to a select group online. This step allows you to see firsthand how customers react, what they like, and what needs improvement.

Use customer feedback to fine-tune your offerings. Maybe there’s a feature they love that you can emphasize more, or perhaps there’s a small gap in your service that you hadn’t noticed. Correcting these early on means you can address problems before they become bigger issues.

8. Explore bartering opportunities

Bartering—exchanging your services for those you need—can be a lifeline for startups looking to conserve cash. Imagine you’re skilled in social media marketing but your website could use some work. That’s where a swap can make a difference.

Identify your offer and needs first. Then, attend networking events or scour online communities specific to your industry for potential trade partners. Clarity on what you bring to the table and what you’re looking for is key to finding a good fit. Upon finding a match, discuss the work scope, deadlines, and mutual expectations in detail.

This strategy minimizes out-of-pocket expenses as you build your business. Treat each trade with the professionalism of a paid gig. An agreement outlining tasks and timelines can be highly effective for ingraining accountability in all parties.

9. Optimize operations with automation

As your business starts to grow, look for opportunities to automate repetitive tasks. This will help you scale your operations without immediately increasing your costs with new hires. Consider:

• Email marketing automation. Use a service like MailerLite to automatically handle your welcome and follow-up emails for free. This way, you keep in touch with your customers without manually sending each email.
• Social media scheduling. Tools like Hootsuite or Buffer let you plan your social media posts early. You get to save time and keep your online presence consistent, without being online all day.
• Business process automation. With Zapier , you can make your apps and services talk to each other and do tasks on their own. It’s like having an assistant who works for free, keeping the routine stuff in check so you can focus on the big picture.

10. Learn from the business community

Many small business owners started with just a handful of dollars. They’ve learned plenty on their journey. Here’s how you can get their insights for free:

• Visit networking events
• Sign up for both virtual and physical conferences
• Join online groups where business is the main topic
• Find a mentor who’s been through it all

How much does it cost to start a business?

The expenses involved in launching a business can vary significantly, based on the type of venture you’re starting. While opening a physical storefront might require a substantial outlay for rent, inventory, and staffing, other business models are far less capital-intensive. For instance, you only need a reliable internet connection and a website to start a service-based business.

Pros of starting a business with no money

• Total control. Without loans or investors, you call all the shots and don’t owe anyone explanations or updates. It’s all on you.
• Minimal risk. If your business takes off, great. If not, you’re mainly out the time you put in, not a pile of cash.
• High scalability. Your financial start doesn’t determine where you finish. From humble beginnings, the top is still within reach.

Cons of starting a business with no money

• Slow growth. Without initial funds, your business might take longer to gain momentum. A little capital can often speed up the process.
• Missed opportunities. A tight budget means making tough choices. Your marketing might be minimal, and stocking up could be a challenge.
• Solo operation. Dream of a team? Without funds, it’s probably just you to begin with. Hiring help waits until there’s money coming in.

Don’t let lack of cash hold you back from entrepreneurship

While money is, obviously, a helpful asset for starting a successful business, you can certainly make it work with good old-fashioned bootstrapping. Whether you choose to sell services or crowdfund for your business, you can get the ball running without thousands of dollars to invest upfront. 

The key is to get into scrappy entrepreneurship mode—work hard, be persistent, and leverage as many resources as you can think of. The more creative you can get, the better your chances of succeeding.

How to start a business with no money FAQ

What business can i start without capital.

Dropshipping is a business idea you can pursue without capital. Find suppliers willing to ship directly to customers and use a platform like Shopify to list them for sale. You’ll only pay for an item when someone orders the product.

What is the easiest business to start with no money?

Although there are a range of businesses that can be started without money, dropshipping is one of the easiest. With dropshipping, you avoid excessive warehousing fees and pay only for inventory when a customer orders it. Plus, there are user-friendly tools you can use to create your products—no need for complicated design software.

What is the best business structure for bootstrapping?

The best business structure for your venture depends on several factors, including the nature of your business, the industry you’re in, and your specific goals. For instance, if you’re launching a small freelance writing business with no immediate plans for expansion and want to keep things simple, starting as a sole proprietorship could be ideal (since this structure has minimal legal requirements).

Want to learn more?

• How Much Does it Cost to Launch a Dropshipping Store?
• 11 Ways to Make Money From Your Smartphone
• How to Get A Business Loan: 6 Steps To A Strong Application
• Product Development: How to Approach It (6 Steps)

Social Media Engagement: 9 Ways to Amplify Your Audience Connection

Learn what social media engagement is and how you can improve yours to drive greater awareness of your business.

The Ultimate Guide to AliExpress Dropshipping

If any of you have doubts that you can create a successful ecommerce business with AliExpress dropshipping, this post w…

Instagram Story Dimensions and Killer Ideas to Up Your Game

Learn proper Instagram Story dimensions, plus tips to create compelling Stories for your business.

Oberlo uses cookies to provide necessary site functionality and improve your experience. By using our website, you agree to our privacy policy.

Starting a Business | How To

How to Start a Business With No Money in 2024

Published February 29, 2024

Published Feb 29, 2024

REVIEWED BY: Mary King

WRITTEN BY: David Rivera

This article is part of a larger series on Starting a Business .

• 1. Assess Your Available Skills & Assets
• 2. Develop a Business Idea
• 3. Learn Where Your Customers Are
• 4. Perform Low-cost Validation
• 5. Handle Business Registration & Insurance
• 6. Set Up Your Payment Methods
• 7. Conduct Budgeting
• Tips for Starting a Business with No Money

Bottom Line

Starting a business can be a daunting task—more so if you want to do it without any money. But just because you have little to no starting capital doesn’t mean you have nothing going for you. Many of the most crucial steps in starting a business have little to do with how much money you have at the beginning. Our guide shows you how to start a business with no money—and you can take the first step today.

Key takeaways:

• The skills and experience you already have can form the core of a small service-based business.
• Find early customers through your network or online.
• Test your ideas before committing too many resources.
• Set up various ways to receive payment.
• Be flexible and adjust your business development as you go.

Step 1: Assess Your Available Skills & Assets

Even when you start a business with no money, you’re never starting without any assets. All of the experience, skills, knowledge, interests, and equipment that you’ve accumulated over the years are assets that can make you interesting and valuable to potential customers. You don’t necessarily have to be a top-level expert to get started; you just need to be more skilled or experienced than your potential customers.

You don’t have to start with just what you already know, either. You can always use free online learning resources, libraries, and even mentoring from friends and acquaintances to add to your knowledge base—and make what you offer more useful to people.

Here are some guide questions you can use to assess your own skills and assets, and start thinking about how these may be useful to other people:

• What skills, experiences, and knowledge have you picked up over the years? Don’t limit yourself; these can be related to hobbies and personal interests, as well as professional skills and experience.
• How can you make yourself stand out from the competition? What have you learned, seen, or experienced over time that not many other people have? Or, can you offer familiar things in a new way?
• How could you teach or communicate your skills and knowledge to someone else? Or, how could you use them to make someone else’s life easier, more convenient, or more enjoyable?
• What else can you learn to add to your existing knowledge? What resources are easily available to you?

The first step is to take stock of all the skills, experience, knowledge, and tools you’ve gathered over the years. These can all serve as things you can offer to potential customers.

Step 2: Develop a Business Idea

Once you have a good grasp of your own skills, experience, and other assets, plus an idea of how to reach your customers, it’s time to write down your business idea.

If you want to, you can create a full business plan at this stage. This will involve deciding on a business name and setting contact information; writing a company overview, list of offerings, marketing and sales strategies, and financial information; and working on tasks such as permits, licenses, and agreements. This is a lot of information to lay out, but you can choose to create a simpler one-page version for now.

However, you don’t necessarily have to create a full-blown business plan or proposal, unless you’re planning to pitch to a financier in the near future. You can opt to simply have a description of what your product or service is, how you plan to reach your customers, provide what they need, and receive payment. Writing these down will keep you focused whenever things become uncertain, and can also serve as a template for a more formal business plan in the future.

Your written business idea doesn’t need to be incredibly detailed, but it should contain a few vital elements.

Here is the information you need to include in your written business idea:

• Clearly defined target market. Be as specific as possible when describing your intended customers. Think about their age range, income level, location, spending habits, priorities, pain points, and wishes. The purpose of this specificity isn’t to limit your business model but rather to help you design or fine-tune your products and services, and improve your marketing. You can always revise the image of your ideal customers later on if the business goes in an unexpected direction. Creating a customer persona will also help with these efforts.
• Product or service descriptions. Write clear descriptions of your services and products . As the old saying goes: your products and services don’t have to be suitable for everyone, but anyone should be able to understand what they are. Good descriptions will pique potential customers’ interest, improve brand awareness, and pave the way towards engagement and buyer loyalty.
• Marketing and advertising plans: While the tips in Step 2 above will help you find your first few customers, your business will need a more robust marketing and advertising plan as your customer base grows. Even with a small budget, you can get your business listed in online business directories, advertise on Facebook and other social media platforms, or create a dedicated website . We’ve compiled a list of local advertising ideas to help you get started.
• Budget: You might wonder why it’s necessary to include a section on budgeting in a plan for starting a business with no money. Preparing for the possibility of failure is always a good idea—but what if you succeed? What if your first few customers are happy, you get referred to more buyers, and your business really starts to take off? In that case, you’ll need to figure out the best way to allocate and spend your growing profits (hint: reinvest them into the business). As your operations grow in scale, you may find yourself renting or buying office space, purchasing new equipment, and even hiring an employee or two. You’ll need a written budget to account for all of these.

If you’d like more specific guidance, here are some ideas for starting a business with no money:

• Pet-sitting
• House cleaning
• Gardening/Lawn care
• Digital marketing
• Content writing and editing
• Bicycle repair/maintenance
• Fitness training/yoga
• Digital or manual visual arts
• Homemade meals
• Computer or household repair

For even more ideas and inspiration, plus insights on earning potential, read through our business idea guides:

• Business Ideas for Beginners
• Home-based Business Ideas
• Unusual Business Ideas for Entrepreneurs

Step 3: Learn Where Your Customers Are & How to Reach Them

If you don’t have an idea of where potential customers congregate, or if you can’t reach them to advertise your business, then nothing else matters—your new business will grind to a halt before it even gets started.

Here are some avenues you can use to find your first few customers without breaking the bank:

• Explore social media as well as online forums and message boards in your area. This will not only give you some real-world insights about the concerns and problems that people have (for which you may be able to provide solutions) but also give you opportunities to engage with these people and find buyers as well as potential business partners and financers in your town or city.
• Leverage your existing networks. Even if it becomes difficult to think of anyone you know who might want what you’re offering, you can always search further out by networking through friends, relatives, and previous or current business contacts. Someone you know is bound to know someone else who needs gardening done, or something in their house cleaned or repaired, or their kids and pets taken care of for a few days.
• Embrace cold calling and cold emailing. While cold calling and emailing might seem like a random strategy (in addition to being pretty nerve-wracking for many people), it can be a useful tool for gaining your first few customers. You may end up connecting with new contacts who are interested in trying out your services or partnering up with you; and even if you don’t, you’ll get some valuable practice in reaching out to strangers and marketing yourself.

When looking for your first few customers, don’t be afraid to email or even get on the phone with distant acquaintances or strangers. At this stage, you have nothing to lose and everything to gain.

Once you’ve gained your first few buyers and completed a few sales, things can start to compound: satisfied customers will recommend you to their own friends and contacts, your own network will expand, and you’ll gain more potential customers.

Step 4: Perform Low-cost Validation

A common pitfall for new entrepreneurs is that they will come up with a business idea, pour a ton of time, effort, and money into setting everything up before launch, and then pray that customers will come and buy. More often than not, the customers do not come (or not enough of them do), and the business owner is eventually forced to close shop, with a crushed spirit and possibly even some debt to pay off. We don’t want this to happen to you.

Avoid this pitfall by validating your business idea early on. This just means performing some test runs to make sure that people do actually want what you’re offering, before you make a really big investment of resources into the venture.

If you’re starting a service business, offer free or reduced-cost trial services for your first several customers. Afterward, ask what could be done better, and whether the customer would pay for your service again in the future or refer you to others.

Offer free or cheap services to your first few customers to gauge their interest. The goal isn’t to make an immediate profit but to check if people want what you’re selling.

If you’re setting up a business that sells physical products, you can use pre-orders to validate your idea. Show potential buyers a strong product description and images, and then let them know that if five, 10, or 50 of them place orders and pay early, you’ll begin the manufacturing and delivery process. The pre-ordering validation method has two benefits: You’ll be able to gauge how popular your product will be among customers, and you’ll avoid running up any manufacturing and delivery costs until you have buyers’ money in your pocket.

Step 5: Handle Business Registration & Insurance

Business registration and insurance are important steps, but don’t worry about them too early on if you’re starting a business with no money. It’s more important to first check whether people actually want the products and services you’ll be offering.

The exact process of business registration will vary depending on the state you’re living and operating in. In general, though, you’ll need to come up with a business name and choose a legal entity, open a business bank account, obtain any necessary permits and licenses, and secure your intellectual property (if applicable). We’ve put together a complete guide and checklist for how to register your business .

Business registration and insurance are important steps, but first, make sure that enough people actually want to buy what you’re selling.

As for business insurance, this is a good way to protect your business and any profits you’ll be making. Many insurance companies are happy to work with small businesses; we’ve put together a list of the best ones . When choosing the best insurance company, consider the exact type of coverage you need, compare different providers, look for discounts, and apply best practices to minimize risk in your business (thus keeping your premiums low). These points are especially important if you’re looking to save as much money as possible on your business insurance .

Step 6: Set Up Your Payment Methods

While you may not need more comprehensive software tools (such as a point-of-sale system or inventory management system ) for your budding small business, you will need a way to get paid.

Since you probably have neither a physical store location nor employees at this stage, start with a mobile payment processor that allows you to accept card payments with just your smartphone or tablet. Digital wallets such as Apple Pay and Google Pay are another great choice that increases convenience for customers. These payment methods are all that a beginning solopreneur needs, and will allow you to process transactions and accept customers’ money without the need for more intensive hardware such as a cash register.

Mobile and digital wallet payment tools let you receive payments from customers using just a smartphone or tablet.

• Cheapest Credit Card Processing Companies
• Free Credit Card Processing
• How to Accept Credit Card Payments Online for Free

Step 7: Conduct Budgeting & Financing

Finally, spend some time thinking about long-term budgeting and financing. This is necessary to some degree even for low-budget businesses, and even if your first few customers are just friends and family. As your business grows and you get more customers, it’ll become even more important.

At the very beginning, all you’ll really need to do in terms of budgeting is to tally up your expenses and profits. Know how much your skills, experience, and equipment are worth, figure out the costs of getting to your customers (this can be as simple as calculating your daily transportation costs), and determine how much you want to charge customers so that you make a decent profit. As your business grows, however, you’ll need to start thinking about creating dedicated budgets for sales and marketing, inventory and purchases, cost of goods, and more. Once you’ve reached this stage, check out our guide and template for how to create a small business budget .

Even when starting a business with very little capital, you’ll eventually have to start creating a budget as your profits increase.

As for financing, you may be able to get by paying for all expenses yourself at the beginning (and this is indeed the best way to do things if you’re starting out very small). Once things get rolling and you feel the need to expand, though, it’s time to start thinking about additional financing. If necessary, you can borrow from friends and family, banks, or licensed moneylenders. Naturally, you’ll also need to work out a plan to pay back these loans plus interest, which is why you shouldn’t borrow until your business is already turning a measurable profit on its own.

Tips for Starting a Business With No Money

Here are a few more tips to give you an edge when starting a business with no money:

• Don’t neglect networking. A solid network is an asset in its own right and can make up for some of the challenges of low starting capital. If there is a product or service that several people in your network need—content writing, website design, social media marketing, handyman or repair services, and more—then you know that you already have a potential customer base for a small business. Reach out to everyone you can within your existing network, and expand your circle by joining online platforms that connect product and service providers and potential buyers.
• Try prioritizing services rather than products. Creating and selling products can be a good way to make money without a ton of effort—but for an aspiring entrepreneur with little or no starting capital, it’s better to start by offering services. You can start offering services immediately, without worrying about manufacturing, inventory management, or product delivery.
• Adjust your business plan as you go. As you experiment and get feedback, your business might start developing or changing in ways that make it different from your original vision. Perhaps you envisioned yourself as a gardening or lawn care business, but it turns out more people need basic home repair done. Or you wanted to provide simple childcare services, but you’ve been seeing a lot of parents who want math tutors for their kids. Don’t be too stubborn with sticking to your original plan; be willing to pivot and adapt to what customers want.

Frequently Asked Questions (FAQs)

Click through the following sections to learn more about how to set up a business with no money.

How can I start a business with no money?

At the most basic level, all you need is a service that you can provide (based on your existing skills and knowledge), some customers who are willing to pay for it, and a way to receive payment. You can find customers through your network, or by engaging with online forums and message boards. For receiving mobile and digital payments, all you need is a smartphone or tablet.

What is the easiest business to start with no money?

Service-based businesses are easier to start with compared to selling products. You can offer services immediately, and make quick profits while also easily gauging how interested customers are. Products are good for making a lot of money quickly, but you’ll also have to worry about manufacturing or sourcing, inventory, delivery, and maintenance.

You’ve probably heard the old saying, “It takes money to make money.” This doesn’t have to be the case when starting a business; following the steps in tips in this guide will help you get the ball rolling even if you have little or no starting capital. Begin by assessing your skills and experience, taking stock of all your assets, and finding your first few customers online, and you’ll be well on your way to realizing your entrepreneurial dreams.

About the Author

Find David On LinkedIn

David Rivera

David Rivera is a Retail Staff Writer at Fit Small Business focusing on point-of-sale systems. Since 2016, he has produced and optimized content for a variety of industries including ecommerce and luxury retail. For the past couple of years he has focused more closely on ecommerce and retail topics as well as point-of-sale systems.

Join Fit Small Business

Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you. Select the newsletters you’re interested in below.

• Auto Insurance Best Car Insurance Cheapest Car Insurance Compare Car Insurance Quotes Best Car Insurance For Young Drivers Best Auto & Home Bundles Cheapest Cars To Insure
• Home Insurance Best Home Insurance Best Renters Insurance Cheapest Homeowners Insurance Types Of Homeowners Insurance
• Life Insurance Best Life Insurance Best Term Life Insurance Best Senior Life Insurance Best Whole Life Insurance Best No Exam Life Insurance
• Pet Insurance Best Pet Insurance Cheap Pet Insurance Pet Insurance Costs Compare Pet Insurance Quotes
• Travel Insurance Best Travel Insurance Cancel For Any Reason Travel Insurance Best Cruise Travel Insurance Best Senior Travel Insurance
• Health Insurance Best Health Insurance Plans Best Affordable Health Insurance Best Dental Insurance Best Vision Insurance Best Disability Insurance
• Credit Cards Best Credit Cards 2024 Best Balance Transfer Credit Cards Best Rewards Credit Cards Best Cash Back Credit Cards Best Travel Rewards Credit Cards Best 0% APR Credit Cards Best Business Credit Cards Best Credit Cards for Startups Best Credit Cards For Bad Credit Best Cards for Students without Credit
• Credit Card Reviews Chase Sapphire Preferred Wells Fargo Active Cash® Chase Sapphire Reserve Citi Double Cash Citi Diamond Preferred Chase Ink Business Unlimited American Express Blue Business Plus
• Credit Card by Issuer Best Chase Credit Cards Best American Express Credit Cards Best Bank of America Credit Cards Best Visa Credit Cards
• Credit Score Best Credit Monitoring Services Best Identity Theft Protection
• CDs Best CD Rates Best No Penalty CDs Best Jumbo CD Rates Best 3 Month CD Rates Best 6 Month CD Rates Best 9 Month CD Rates Best 1 Year CD Rates Best 2 Year CD Rates Best 5 Year CD Rates
• Checking Best High-Yield Checking Accounts Best Checking Accounts Best No Fee Checking Accounts Best Teen Checking Accounts Best Student Checking Accounts Best Joint Checking Accounts Best Business Checking Accounts Best Free Checking Accounts
• Savings Best High-Yield Savings Accounts Best Free No-Fee Savings Accounts Simple Savings Calculator Monthly Budget Calculator: 50/30/20
• Mortgages Best Mortgage Lenders Best Online Mortgage Lenders Current Mortgage Rates Best HELOC Rates Best Mortgage Refinance Lenders Best Home Equity Loan Lenders Best VA Mortgage Lenders Mortgage Refinance Rates Mortgage Interest Rate Forecast
• Personal Loans Best Personal Loans Best Debt Consolidation Loans Best Emergency Loans Best Home Improvement Loans Best Bad Credit Loans Best Installment Loans For Bad Credit Best Personal Loans For Fair Credit Best Low Interest Personal Loans
• Student Loans Best Student Loans Best Student Loan Refinance Best Student Loans for Bad or No Credit Best Low-Interest Student Loans
• Business Loans Best Business Loans Best Business Lines of Credit Apply For A Business Loan Business Loan vs. Business Line Of Credit What Is An SBA Loan?
• Investing Best Online Brokers Top 10 Cryptocurrencies Best Low-Risk Investments Best Cheap Stocks To Buy Now Best S&P 500 Index Funds Best Stocks For Beginners How To Make Money From Investing In Stocks
• Retirement Best Gold IRAs Best Investments for a Roth IRA Best Bitcoin IRAs Protecting Your 401(k) In a Recession Types of IRAs Roth vs Traditional IRA How To Open A Roth IRA
• Business Formation Best LLC Services Best Registered Agent Services How To Start An LLC How To Start A Business
• Web Design & Hosting Best Website Builders Best E-commerce Platforms Best Domain Registrar
• HR & Payroll Best Payroll Software Best HR Software Best HRIS Systems Best Recruiting Software Best Applicant Tracking Systems
• Payment Processing Best Credit Card Processing Companies Best POS Systems Best Merchant Services Best Credit Card Readers How To Accept Credit Cards
• More Business Solutions Best VPNs Best VoIP Services Best Project Management Software Best CRM Software Best Accounting Software
• Manage Topics
• Investigations
• Visual Explainers
• Newsletters
• Abortion news
• Coronavirus
• Climate Change
• Vertical Storytelling
• Corrections Policy
• College Football
• High School Sports
• H.S. Sports Awards
• Sports Betting
• College Basketball (M)
• College Basketball (W)
• For The Win
• Sports Pulse
• Weekly Pulse
• Buy Tickets
• Sports Seriously
• Sports+ States
• Celebrities
• Entertainment This!
• Celebrity Deaths
• American Influencer Awards
• Women of the Century
• Problem Solved
• Personal Finance
• Small Business
• Consumer Recalls
• Video Games
• Product Reviews
• Destinations
• Airline News
• Experience America
• Today's Debate
• Suzette Hackney
• Policing the USA
• Meet the Editorial Board
• How to Submit Content
• Hidden Common Ground
• Race in America

Personal Loans

Best Personal Loans

Auto Insurance

Best Auto Insurance

Best High-Yields Savings Accounts

CREDIT CARDS

Best Credit Cards

Advertiser Disclosure

Blueprint is an independent, advertising-supported comparison service focused on helping readers make smarter decisions. We receive compensation from the companies that advertise on Blueprint which may impact how and where products appear on this site. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Blueprint. Blueprint does not include all companies, products or offers that may be available to you within the market. A list of selected affiliate partners is available here .

How to start a business with no money in 2024

Cat McAlpine

Alana Rudder

“Verified by an expert” means that this article has been thoroughly reviewed and evaluated for accuracy.

Updated 4:49 a.m. UTC Jan. 31, 2024

• path]:fill-[#49619B]" alt="Facebook" width="18" height="18" viewBox="0 0 18 18" fill="none" xmlns="http://www.w3.org/2000/svg">
• path]:fill-[#202020]" alt="Email" width="19" height="14" viewBox="0 0 19 14" fill="none" xmlns="http://www.w3.org/2000/svg">

Editorial Note: Blueprint may earn a commission from affiliate partner links featured here on our site. This commission does not influence our editors' opinions or evaluations. Please view our full advertiser disclosure policy .

kate_sept2004, Getty Images

Running your own business comes with freedom, flexibility and, possibly, great financial success. However, starting a successful business can be expensive. What if you have a great idea but no savings? Luckily, there are many ways to start a business with no money. 

Read on to explore businesses with no startup costs, plus learn how to create your business plan, seek funding and successfully establish your business. 

Editor’s Note: This article contains updated information from a previously published story.

Featured LLC service offers

Zenbusiness.

Via ZenBusiness’ website

Free version available

Lowest published package price

Via LegalZoom’s website

Northwest Registered Agent

Via Northwest’s website

1. Come up with a business idea

Some businesses are easier to start than others. Starting a bakery, for example, requires special skills, a passion for baking and a lot of overhead costs. But there are plenty of ventures that require no money upfront. 

To tap into one, think about the skills you already have and the resources currently available to you. Your work doesn’t have to be something you’re incredibly passionate about, but it should be something you are competent in and can enjoy.

For example, if you have specific skills in writing, management, design or any kind of content production, you may be able to freelance as an individual. If you have broader skills like being extremely organized or good at multitasking, you may find that something like dropshipping works best for you. 

Don’t be afraid to explore an idea, going so far as to develop a business plan, before deciding if it’s right for you. Seeing the big picture next to the expected day-to-day intricacies will give you a good idea of what a business will be like to operate and if it can be successful. 

Below are some common businesses that require no upfront investment to get started:

Dropshipping

Dropshipping is when you act as an intermediary between customers and a supplier without first purchasing or keeping inventory yourself. By building an online storefront, you can offer items to your customers that your supplier has agreed to provide to you at a wholesale price.

Photography

Photography is a growing field and there are many people and places who will want your services. Weddings, birthdays, concerts and corporate events all often involve a paid photographer. If you already own a camera and possess some basic photography knowledge, it can be easy to start your photography business.

Pet sitting

Pet sitting and house sitting only require your time and attention. While certification isn’t required, pet owners and homeowners alike may want to hear about any prior experience you have providing care for pets. 

The main qualifications for pet sitting are loving animals and being responsible. You can join a company that already provides pet services, find an online community that caters to pet sitting or build your own brand as an individual. 

Personal training

Providing personal training or fitness coaching does not require a degree or certification, and by making your services available digitally, you don’t need to pay to rent a space or equipment. The bulk of training income comes from one-on-one workout sessions, which can be done remotely or by selling fitness plans online. If you find a place to monetize video content, you can also leverage tutorials and workouts.

Freelancing

There are a whole host of services that you can provide as a freelance worker. If you enjoy writing, you can find work designing courses, developing social media captions, writing articles and supporting many other kinds of publications. The same goes for any other marketable skills like graphic design or even project management.

2. Create a business plan

A great business plan will prepare you for successes and failures by outlining your entire business from top to bottom. Potential investors will want to see your business plan, so they know they are making a wise investment with a good chance of returns. 

Make your business plan successful by being straightforward, easy to understand, using clear charts and visuals and using industry-specific research. It is important to include:

• An executive summary: This provides a big-picture look at your business plan, including organizational structure, product or offerings, marketing strategy and financial projections. Make sure to also include a mission statement for your new business.
• Market analysis: Conducting a competitive analysis will help you review what other similar businesses are doing to be successful. Look for trends and themes that you can follow as well as opportunities to improve your product or offering. In addition, look for gaps in industry offerings that you may be able to fill.
• Customer profiles: Outline the key demographic you will target and how your products or services will uniquely meet their needs, including the competitive advantage you will offer them and how you will reach them. 
• Company structure: Describe how your company will be structured and who will run the business. Include an organizational chart to show how every new member will contribute to the business. Include information on your leadership team’s qualifications. Identify if your company will be an LLC , a partnership or a type of corporation. Learn more about business structures here . 
• Financial projections: Including financial projections for your business will help convince investors that your business will be successful. Forecast how your business will perform over the next five years, with specific breakdowns at the quarterly or even monthly level for your first year. This is a good place to use clear charts and graphs to effectively share the research you’ve done.
• Supporting documentation: Include resumes for your key employees, analytics reports and patent or trademark documentation and product images to support the claims you’ve made in your business plan.

3. Seek funding

If you have a business idea but need capital to get started, you’ll want to seek funding from other sources. Every business has different needs, so first, determine exactly how much funding you need. Once you have a fundraising goal, you can determine which sources are best to pursue.

• Self-funding: Sometimes referred to as ‘bootstrapping,’ self-funding can refer to money or loans you get from friends and family, your own savings reserves or even withdrawing from accounts like a 401(k). While this gives you the most control over your business and earnings, it’s also risky. Often, you must pay these types of funds back with little guarantee you can.
• Venture capital: Investors provide venture capital funding in exchange for a stake or role in the company. Some may want an executive position, a seat on the board or other involvement in your business. Venture investments typically apply in rounds and are subject to change based on the success of the company. 
• Crowdfunding: You can appeal to potential customers who would like to support your business by launching a crowdfunding campaign. Each crowdfunding platform has specific rules and takes different percentages of what you raise, so make sure to read the terms carefully. Donors will expect something in exchange for their money, usually a prototype of your product or some other kind of gift. 
• Small business loan: Connect with banks and credit unions to begin the process of applying for a small business loan. By applying for your loan with multiple financial institutions, you can compare rates and offers to find the best loan for your business. A lender will expect to see a business plan, an expense sheet and your financial projections. 
• Small business administration (SBA)-guaranteed loan: If financial institutions are worried about the risk associated with your fledgling business and you do not qualify for a traditional loan, look into SBA-guaranteed loans instead. Learn more about SBA-guaranteed loans here . 

4. Define and build your brand

Market research can help you identify what similar businesses are doing in your industry, but now it’s time to use that knowledge to differentiate what you do. Your business’s brand encompasses everything from what colors you use in design and advertising to what values you think are important to your day-to-day practice. 

Once you’ve reviewed the brands of competitors, you should sit down and think about what you want your brand to be. For example: Is it cool and hip? Reliable and safe? Low-waste and environmentally conscious?

Whatever you want your brand to be, make sure to take the following factors into consideration:

• Name: Your brand name is very important. It should give customers a sense of what you do and how you want them to feel about what you do. It should also be distinct from your competitors and easy to spell and remember. 
• Audience: Know who your potential customers are and make sure you’re speaking to them. For example, if you’re targeting older customers, you shouldn’t use popular slang in your messaging. 
• Purpose: Defining your purpose not only provides clarity to your customers but also to yourself and any employees. Answer why you do what you do and what is important about your product or offering. 
• Voice: Brand voice is how you talk about your brand. Do you want to brag about how good your services are? Do you want to back your product with lots of research? Finding your voice helps support the other factors you’ve already defined for your brand — including your audience and purpose. Create a style guide that outlines your company voice, including what and how you communicate to customers and how you do not. 
• Look: Likely the first thing you think of when you imagine a brand is how it looks. From what kind of colors a brand uses to its logo to its font choices, a visual brand is an incredibly important part of how customers associate your product with your business. Create a style guide that defines your brand’s color scheme, logo usage and graphics templates, for example.

5. Test your business idea

Once you’ve written your business plan, secured funding and defined your brand, it can be tempting to open your business up to the world. But before you do, try a smaller-scale launch that allows you to test your processes and offerings. 

Start local or build a simpler version of your product to troubleshoot for any roadblocks before moving into production. Be sure to survey customers during your testing period to see how they feel about your offerings and your brand. Don’t forget to ask about your customer service and overall experience. 

Positive signs it might work

If people are excited about your offerings and want to know more, that’s a good sign. Carefully review the feedback you’ve gotten from friends, family and customers during your test launch. If you can, connect with other experts in the industry. As you evaluate the success of your soft launch, ask yourself:

• Have I improved an existing product or offering?
• Did I successfully solve a problem?
• Is my business sustainable?
• How many people can afford to purchase my product?
• How can I better speak to the needs of my customers?

The answers to these questions will help you envision the future success of your business, and will determine what changes you still may need to make for a successful final launch. 

Scaling the idea in the real world

Once you’re ready to grow your business, you’ll need to strategize how to maximize your sales while minimizing your costs. Reflect on your test launch to better understand your customers and their needs. 

Common scaling mistakes include:

• Scaling too quickly.
• Prioritizing short-term goals over long-term goals.
• Overlooking the efficacy of your processes and systems.

While growth focuses on increasing revenue, scaling focuses on making your business agile and efficient. It requires looking internally at your business as much as it does looking outward at your customers. To do so, think about tools that can help you scale, including: 

• Payroll software . 
• Recruiting and onboarding software . 
• Project management software . 
• Task management software . 
• Payment processing software . 
• Customer relationship management software .

Most of these types of software have free versions available for budget-conscious businesses. Many also offer free trials to help companies get started with no startup costs. 

Persisting through adversity

There will be roadblocks the work through as your business grows, but they can be overcome. Common mistakes in small businesses are:

• Failing to properly price services or products.
• Not asking for help.
• Being too optimistic when setting goals.
• Misunderstanding potential customers.

If you encounter any of these challenges, don’t give up. Try performing a SWOT analysis to identify your business’s strengths, weaknesses, opportunities and threats. 

Then set SMART goals that are specific, measurable, achievable, relevant and time-bound. Once you’ve analyzed your challenges and set new goals, you’re ready to move forward. 

6. Market and grow your business

Once you’ve established your business, identified your customers, evaluated your processes and needed tools to successfully scale and prepared to adapt to challenges, you’re ready to grow. 

There are many different ways that you can market your business, reach new customers and improve brand recognition. Grow your new business with the following marketing ideas:

• Get listed: Set up your business details on Google so that customers can easily find your website, hours and other pertinent details.
• Go social: Determine which social media platforms are most popular for your target customers and establish a presence there. 
• Get involved: Make sure to engage with any relevant online communities where you can become a subject matter expert by sharing on relevant topics and sharing your business’s offerings.
• Provide expertise: Expand your reach by going out into the community in person. Attend relevant trade shows or offer your expertise in webinars and workshops.

Frequently asked questions (FAQs)

Yes, you can start a business with no money, but it often requires you to find funding elsewhere. Businesses that have no start-up costs will eventually cost money in order to grow, including advertising, market research or building a website.

The cheapest businesses to start require no start-up costs and depend wholly on services or products you can provide as an individual, including freelance writing, dropshipping, personal training, pet sitting or other personal skills like photography, design or working as a personal assistant.

To start a business, you need a solid business idea. Start with market research before finalizing your idea. Use that research to develop a business plan that will help you find funding, choose a business structure and prepare to launch. 

Finally, you’ll need a business name and the necessary licenses and permits to legally register your business.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy . The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Cat McAlpine is a writer and marketer based in Columbus, OH. She uses her expertise to support small businesses and arts organizations in her city.

Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.

How to start a clothing business in 2024

business-formation Deirdre Mundorf

How to start a small business: A step-by-step guide

Business Eric Rosenberg

• Search Search Please fill out this field.
• Overcome Challenges
• Develop a Low-Cost Idea
• Role of Budgeting
• Financing Options
• Bootstrapping

Leverage Free Resources

• Network & Collaborate
• Build an Online Presence

The Bottom Line

• Small Business
• How to Start a Business

Starting a Business with No Money: How to Begin

Master the art of bootstrapping and creative financing

Starting a business requires a certain amount of planning, which includes determining how much capital you'll need. It's possible to start a business with little or no money, but doing so can test the limits of your creativity and commitment. It's helpful to know what options you have if that's your goal and you intend to grow it on a shoestring. 

Key Takeaways

• Starting a business with no money is challenging, but not impossible.
• Exploring creative financing options and ways to bootstrap a business can help you raise the capital you need to get started.
• Borrowing may be a possibility but it's important to consider whether that's affordable, based on your estimated revenue projections.

Overcome the Challenges

An undeniable truth about starting a business is that money matters. A 2022 survey from Skynova, which aims to help small businesses get paid faster, asked startup founders to name their top reasons for failure. Forty-seven percent cited a lack of financing while 44% said that they simply ran out of cash.

Starting a business with no money or minimal capital can limit what you can do to grow and scale in the early stages. For example, when you have no money it can be more difficult to:

• Hire employees or support staff
• Purchase necessary inventory or supplies
• Advertise and market your business

How impactful a lack of money is can depend on the type of business you're hoping to start. If your budget is limited, then you might consider what kind of businesses you could start with zero investment. 

Be sure to conduct market research before you even begin thinking about developing your idea. Determine who your competition is and how you plan to target your intended customer base. You may want to consider getting the opinions of potential customers through a focus group or via social media. You can also check with the Small Business Administration (SBA) , which offers free educational resources to help you learn more about the basics of starting a business.

Develop a Low-Cost Business Idea

Some businesses cost more to start than others. For example, you may need $100,000 or more to open a restaurant while you may be able to get a food truck up and running for a fraction of that amount. 

The best businesses to start when you have no money are ones with minimal upfront costs. They're the kinds of businesses you might be able to start from home with nothing more than a laptop and an internet connection. Here are some of the best low-cost business ideas you might consider.

• Content creation for online businesses
• Freelance writing or blogging
• Virtual assistant business
• Social media manager or consultant
• Online course creator or online tutor
• Online bookkeeper
• Dropshipping
• eBay reseller
• YouTube or TikTok creator
• Graphic designer
• Video editing

These are all businesses that you could run from home without having to spend a lot of money. There are also some businesses you can start offline that don't require startup cash. For example, you might start a dog-walking or pet-sitting business, become a tutor for local students, or teach art or music. These businesses allow you to leverage your skills to make money without spending any money. 

Be sure to check local laws first if you're interested in starting a business that's subject to regulation, such as a home daycare or home bakery.

The Critical Role of Budgeting

When starting any business, it's important to have a budget to follow. Your budget serves as a financial guide to help you understand your costs when getting your business off the ground. 

What your business budget looks like initially can depend on what kind of business you're starting. If you're pursuing a low-cost business plan , your startup costs may be much lower than someone who's starting a brick-and-mortar business. 

In terms of how to make a small business budget prior to launching, it's important to add up all of the costs you expect to have. That might include:

• Purchasing inventory or supplies
• Renting or leasing a business space
• Buying equipment
• Paying for marketing or advertising
• Hiring staff

Your budget should be as detailed as possible so you have a realistic picture of what your spending might look like. You can then compare that to an estimate of what you expect your sales or revenue to be once your business launches. 

Budgeting for a business isn't something you do once, either. It's important to review your budget monthly to see how cash flows in and out of the business. Keeping expenses to a minimum is one of the best ways to maximize cash flow while your business is still in the fledgling phase. 

Creative Financing Options

There are a number of ways to finance a new business without having to spend any money yourself. Comparing different options can help you decide what might be right for you. Consider the following options:

• Small Business Grants : These grants provide money to support entrepreneurship, and unlike a loan, it doesn't need to be paid back. The SBA supports a number of grant programs, including ones for minority-owned, women-owned , and veteran-owned businesses.
• Crowdfunding: This option allows people to contribute money to campaigns in small amounts in order to help entrepreneurs launch their businesses. Some of the most popular platforms for seeking support include GoFundMe, Indiegogo, and Kickstarter. 
• Microloans. If you're comfortable borrowing to fund your new business, you might consider a microloan. The SBA's microloan program allows you to borrow up to $50,000 to start a business and you can repay it over a period of up to six years.  
• Credit Cards: Business credit cards can help you to pay for the things you need to start or run your business and they can be easier to qualify for than loans. Depending on which business credit card you choose, you might be able to earn cash back, points, or travel miles on your purchases. 
• Peer-to-Peer (P2P) Lending : Peer-to-peer loans allow you to borrow money from the crowd. Investors contribute money to fund loans and borrowers pay them back over time, with interest. Loan rates and terms can depend on your overall creditworthiness. 

Traditional small business loans might be harder to get if you're still in the beginning stages of starting a business. Lenders typically require you to have one to two years of operating history and a minimum level of revenue to qualify. Working on establishing business credit could help you to qualify for loans later once your business is up and running. 

If you're using a crowdfunding platform to raise money for a new business, be sure to read the fine print to understand what you'll pay in fees and what happens if your campaign isn't fully funded.

Bootstrapping Techniques

Bootstrapping simply means using the resources you have at hand to fund your business. Choosing to bootstrap a business could help you avoid taking on debt, but whether it's realistic can depend on your financial situation. 

Some of the ways to bootstrap a business include:

• Using funds in personal savings accounts or a certificate of deposit (CD)
• Borrowing against your 401(k)
• Taking an early withdrawal from an individual retirement account (IRA)
• Pulling equity out of your home
• Selling things you don't need for cash
• Putting together a fundraiser locally to ask for donations
• Asking friends and family for a loan

Each of these options has pros and cons. For instance, borrowing against your 401(k) or taking money from an IRA can shortchange your retirement savings since the funds you take out won't benefit from compounding interest . Not to mention, you could be subject to a 10% early withdrawal penalty on distributions.  

Taking a home equity loan or line of credit carries its own risks. If the business fails, you'll still be responsible for paying back what you've borrowed. Should you default on a home equity loan or line of credit, your home could end up in foreclosure . The bottom line is that before you bootstrap, it's important to look at both the advantages and disadvantages of doing so.

Starting a business is no easy task and you may need some help along the way. You could hire a business coach but that requires money, so it's helpful to know where you can find small business resources for free. 

Here are some of the places you can look to get free help when starting a business. 

• SBA: As mentioned, the SBA offers a number of resources to help small business owners, including the SBA loan program as well as educational articles covering how to start a business. 
• Small Business Development Centers: Small Business Development Centers are local organizations that assist small business owners with things like planning, accessing capital, and scaling for growth.
• SCORE: SCORE is a network of mentors who help small business owners find success. Entrepreneurs can connect with a SCORE mentor to get help with planning and starting a business, growing a business, or exiting a business when they're ready to move on.
• U.S. Department of Veteran Affairs : The VA offers support to veterans who are interested in starting small businesses. That includes access to educational resources and training for would-be business owners.  
• National Women's Business Council: The National Women's Business Council is committed to helping women entrepreneurs succeed. Specifically, that centers on helping women in STEM get the capital they need to start their businesses.  

You can also check for free resources locally. For instance, your local chamber of commerce might sponsor free workshops or seminars aimed at helping budding entrepreneurs. You can also look for local nonprofits that serve the small business community. 

If you're starting a business with no money, there's one more free resource you can utilize. Social media can be an effective way to market your new business without spending a dime on advertising. It may take a little longer to build an audience if you're not actively spending on ads, but it's a zero-cost way to spread the word about your business. 

The Federal Trade Commission (FTC) has specific rules for advertising and marketing that business owners must adhere to in order to avoid penalties.

Network and Collaborate

You might be starting a business on your own but if you want it to grow, it can be helpful to focus on building the right connections. That's where networking and collaborating come in. 

Having a sizable network could benefit you in different ways. For example, you might have a connection who could introduce you to someone who's interested in investing in your business. Or you might be offered an opportunity to promote your business on someone's podcast or YouTube channel, which is a great way to get free exposure. 

In terms of how you build your network, it can depend on what type of business you have. If you're starting a brick-and-mortar business, for instance, then you might want to look for connections locally first. That might include joining your local chamber of commerce or small business development council. 

If you're starting an online business, then you could use online resources to connect. LinkedIn could be a good place to start your networking efforts. You can also branch out to other social media platforms to forge professional relationships with business owners or influencers in your niche. 

Build a Robust Online Presence

With 62% of the world's population using the internet and 85% of Americans getting online every day, it makes sense to establish a virtual presence for your business. This can include setting up a website or blog, launching a YouTube channel, getting active on TikTok, or building a presence on Facebook, X, or Instagram . 

One of the best things about using social media to market a new business is that it doesn't have to cost anything. While you could spend money on ads, it's free to create profiles on social media platforms. If you're interested in setting up a website or blog for your business, platforms like Wix allow you to do that for free. 

If you want to build an online presence without spending money, you can certainly do so. It's also important, however, to think about which channels will offer the best return on investment for your time. Understanding where your potential customers gravitate when they're online can help you identify which social media channels are worth targeting. 

Can I Start a Business With $0?

It's possible to start a business with $0 if you're choosing something that utilizes the skills and resources already available to you. For example, if you're interested in getting paid to write, you could start a freelance business from home and all you'd need to have is a laptop and internet connection. 

What Is the Best Business to Start With No Money?

The best business to start with no money is the one that allows you to use your skills, knowledge, and resources in a way that produces maximum return and maximum enjoyment. If you love dogs, for example, then starting a dog-walking or pet-sitting business could be a good fit and it doesn't require a lot of money.

What Is the Easiest Business to Own?

The easiest business to own is one that generates passive income . Passive income is money that you earn without having to do a lot of ongoing work. For example, blogging can provide a passive income if you're making money from affiliate marketing or online ads. You could also make passive income by selling digital products that you only have to create once, such as printables, journals, or ebooks. 

It's possible to start a business with no money if you have an organized plan and strategy . Knowing what you'll need to do to get your business started is the first step. Once your business is up and running, you can explore the best ways to grow it in order to achieve the level of success you desire. That might include applying for small business loans , which can help you to scale and expand.

Skynova. " Top Reasons Startups Fail. "

Small Business Administration. " Grants. "

Small Business Administration. " Microloans ."

Internal Revenue Service. " Retirement Topics: Exceptions to Tax on Early Distributions. "

Federal Trade Commission Consumer Advice. " Home Equity Loans and Home Equity Lines of Credit ."

Small Business Administration. " Small Business Development Centers (SBDC) ."

Score. " Score ."

U.S. Department of Veterans Affairs. " Get Support for Your Veteran-Owned Small Business. "

National Women's Business Council. " Homepage. "

Federal Trade Commission. " Advertising and Marketing Basics. "

Zippia. " How Many People Use the Internet. "

• How to Start a Business: A Comprehensive Guide and Essential Steps 1 of 25
• How to Do Market Research, Types, and Example 2 of 25
• Marketing Strategy: What It Is, How It Works, and How to Create One 3 of 25
• Marketing in Business: Strategies and Types Explained 4 of 25
• What Is a Marketing Plan? Types and How to Write One 5 of 25
• Business Development: Definition, Strategies, Steps & Skills 6 of 25
• Business Plan: What It Is, What's Included, and How to Write One 7 of 25
• Small Business Development Center (SBDC): Meaning, Types, Impact 8 of 25
• How to Write a Business Plan for a Loan 9 of 25
• Business Startup Costs: It’s in the Details 10 of 25
• Startup Capital Definition, Types, and Risks 11 of 25
• Bootstrapping Definition, Strategies, and Pros/Cons 12 of 25
• Crowdfunding: What It Is, How It Works, and Popular Websites 13 of 25
• Starting a Business with No Money: How to Begin 14 of 25
• A Comprehensive Guide to Establishing Business Credit 15 of 25
• Equity Financing: What It Is, How It Works, Pros and Cons 16 of 25
• Best Startup Business Loans for April 2024 17 of 25
• Sole Proprietorship: What It Is, Pros and Cons, and Differences From an LLC 18 of 25
• Partnership: Definition, How It Works, Taxation, and Types 19 of 25
• What Is an LLC? Limited Liability Company Structure and Benefits Defined 20 of 25
• Corporation: What It Is and How To Form One 21 of 25
• Starting a Small Business: Your Complete How-to Guide 22 of 25
• Starting an Online Business: A Step-by-Step Guide 23 of 25
• How to Start Your Own Bookkeeping Business: Essential Tips 24 of 25
• How to Start a Successful Dropshipping Business: A Comprehensive Guide 25 of 25

• Terms of Service
• Editorial Policy
• Privacy Policy
• Your Privacy Choices

This free Notion document contains the best 100+ resources you need for building a successful startup, divided in 4 categories: Fundraising, People, Product, and Growth.

This free eBook goes over the 10 slides every startup pitch deck has to include, based on what we learned from analyzing 500+ pitch decks, including those from Airbnb, Uber and Spotify.

This free sheet contains 100 accelerators and incubators you can apply to today, along with information about the industries they generally invest in.

This free sheet contains 100 VC firms, with information about the countries, cities, stages, and industries they invest in, as well as their contact details.

This free sheet contains all the information about the top 100 unicorns, including their valuation, HQ's location, founded year, name of founders, funding amount and number of employees.

How to Start a Business With No Money in 7 Steps in 2024

Description

Everything you need to raise funding for your startup, including 3,500+ investors, 7 tools, 18 templates and 3 learning resources.

Information about the countries, cities, stages, and industries they invest in, as well as their contact details.

List of 250 startup investors in the AI and Machine Learning industries, along with their Twitter, LinkedIn, and email addresses.

List of startup investors in the BioTech, Health, and Medicine industries, along with their Twitter, LinkedIn, and email addresses.

List of startup investors in the FinTech industry, along with their Twitter, LinkedIn, and email addresses.

It's 2024, everyone wants to start a business. Don't you have any money to do it? Don't worry. In this article, you'll learn how to start a business with no money.

You’re probably thinking about your rent or mortgage, your car payment, and every dang insurance you have to have on top of your other bills; and at the end of the day, you have about $41. You think, “how am I supposed to start a business with that?”

Well, you are in good company. I started this site with $41 . I am currently making +$2,500/month, which might not be a lot for some, but it is great as passive income.

Throughout this long article, I will be teaching you how to overcome each business stage without a penny while sharing my personal experience doing it, share some business ideas that you can start without much money, and recommend you some tips and considerations you may want to take throughout the process.

7-Step Guide to Start a Business With No Money

1) research.

The first and possibly most important step of starting a business is to research different markets & customers (or if already have an idea, which is step #2, just research that market).

There is probably no other better resource to learn how to do this properly than in the following video. It's quite long, I know, but it's amazing. You will learn in real-time how Ramit Sethi, a really successful entrepreneur who has sold +12,000 products to hundreds of customers, carries out market research for new businesses.

Eric Ries from Lean Startup recommends asking for feedback as early on as possible. Getting this feedback can come in millions of different ways, from offline surveys to video calls with your target buyer personas. You may want to experiment to find out what’s the fastest and cheapest way to get this feedback while keeping it high-quality and relevant to your business.

Validating your idea is the most essential part when learning how to start a business with no money. Many startups fail because they build something no one is interested in. That’s what you need to avoid at all costs. If you aren’t sure where to start, reach out to other businesses and entrepreneurs. Their insight is priceless. Some ways to do this are meetups and Linkedin.

Another interesting thing to do is to research tools. When starting a business, you will probably need many tools and software to build it and sell it. But you don't have a huge budget to pay for them, so a great solution is to find free alternatives.

There really is no need to reinvent the wheel. If you have a general idea about a tool you wish you had or existed, Google it. Seriously, Google exactly what you’re thinking. Google “Top Ten…” and you can even add “Free” in the search and find out which ones are similar.

If you’re learning how to start a business with no money, then you’re probably pretty creative and clever. Use that creativity in your research to find what best suits your needs and budget.

There are plenty of free tools for everything and don’t be afraid to test out the FREE TRIALS. You can always cancel it. #protip: set a calendar notification to cancel it so you don’t forget and get charged.

If you can think it, it’s probably already out there (and if it’s not, make it and sell it).

A third thing that’s useful is to research is other startups .

We don’t share success and failure startup stories on Failory for fun; we do it for you! Researching and reading about other startups (even in unrelated fields) will help you learn how to start a business with no money because you will see what worked and what didn’t.

Researching other startups, more specifically in your field, will better help you determine how much money you may need to start your business, what are some things that work and what don’t, what you may need to avoid, etc

You can also learn about potential suppliers, vendors, customers, and competitors. Learning about suppliers, vendors, and customers will help guide your product. Learning about your competitor will help you learn how to shape your marketing and business strategy.

Plenty of people have brilliant business and startup ideas and great products, but it isn’t always the best that succeeds. That’s why you need to be filled with knowledge. In any industry, a lack of knowledge will truly eat you up, so keep learning. Knowledge really is power, it isn’t just a cheesy phrase!

Researching & Learning Before Failory

The research I did before starting this site is a great example of all the things I’ve mentioned.

Before doing it, I had spent many months reading about startups, media businesses, communities, content marketing, etc. I was a big fan (and still am) of Indie Hackers where lots of successful business founders were interviewed every week, which was super inspirational and a great source of lessons and strategies.

At the same time, I remember taking every free online business course I found. I even registered on Udacity and Coursera for their free trials, took the courses super fast and removed the credit card before it was billed.

On the side, I was also constantly trying new tools and products, as I have always been a fan of Product Hunt , a site where new startups and products are launched. As I was really limited in the amount of money I could invest, I would always search for trials, demos and discounts that would enable me to use these products at a fraction of the cost.

That’s how at the moment of building the site and lacking of coding experience, I was able to get a 3-month-free deal on Webflow , a visual web design tool, and a cheap domain and hosting plan.

With just $40, I was able to educate myself in a series of business areas as well as build a functional product that would later on bring thousands of users.

2) Come Up With a Great Idea

Coming with a great idea is essential in order to start a business without money.

You need to know exactly what your idea is and how much you are going to need to start things up. Don’t just go out and get a huge loan; you might not need it. That’s why research is the first step.

Your idea should be refined; it should be specific and clear. What I mean is, test it out and get feedback. We have already talked about feedback... the main idea is to see how practical your theoretical product or service is.

The way I generally come with new ideas is to think issues people are facing. You need to solve an existing and real pain; that’s where people will be more willing to put money in.

Another strategy I generally use is to identify some profitable and fast-growing businesses and adapt them to other niches.

Something you may want for your idea is to have product-market-founder-fit . What’s this?

• Product-fit refers to the product you will offer to your customers.
• Market-fit refers to the problem you aim to solve with your business idea. 
• Founder-fit refers to your interest around that business. Lack of motivation is a common cause of failure for many startups. Your reason for starting a business can’t be just to make money.

The fit of these three means that you have came with a product that offers a great solution to an issue, problem, or pain many people are suffering, and at the same time, you’re interested in the solution you’ve built and market you’re providing it to.

Here’s a great and inspirational video from Dan Martell on 9 strategies to come up with winning business ideas:

If you carry out all of the mentioned strategies so far, you should be able to come up with a big list of business ideas. Just brainstorm for now, then you can do deeper research and remove the ones that you don’t think it will work or don’t work with the product-market-founder fit framework explained above.

What I generally do with new ideas is to store them on a spreadsheet with 9 columns:

• Idea : I explain the idea in a few words.
• Details : I provide deeper details on that idea, the market it would serve, the problem it aims to solve, how will the solution work, etc.
• Domain : I brainstorm some ideas and check if their domains are available.
• Team : I think whether I could work on that business on my own or would need to co-found it / hire someone to do some tasks.
• MVP hours : I estimate how many hours will it take me to build a really basic product for that idea which aims to validate the demand. I'll now get deeper into this.
• Investment : I approximately estimate how much will it cost me to set up the MVP along with what are those costs.
• Price : I select some pricing for that idea based on my gut feeling - no competitor/market analysis yet, there will be time for that.
• Revenue/month : I estimate whether this is an idea that can bring some hundreds per month, some thousands, or some amount that would deserve working on the idea full-time. I generally just write $, $$ or $$$.
• Expenses/month : I estimate what will it be the main costs of keeping the business active in order to easily discard those that have low revenue estimations but high expenses calculations. 

Such a spreadsheet can help you identify which idea to work in, based on the resources, time and team you have. If you want to have an idea storage like this, just duplicate this spreadsheet .

Okay, I have a spreadsheet full of ideas, now what? It’s time to select one and validate it.

Validation of the idea, as already explained, is essential so as to avoid spending time and money on a product no one cares about. A great way to do it is to build an MVP of the business idea you have.

If you take away only three things from this article I hope that this is one of them. 

MVP, which stands for Minimal Viable Product, is a product on a basic level that is valuable and works. You can always add more features and spend time perfecting it, but get it out the door if it is good. Your product may not need all the add-ons.

The main purpose of an MVP is to get feedback about what people really want. It will help you decide whether there is real interest in that product, what features need to be built firstly, what do your customers struggle with the most, etc.

How I Came with Failory’s Idea

As I’ve said, I was a big fan of Indie Hackers, where successful entrepreneurs were interviewed. Courtland, Indie Hackers’ founder, was transparent with the numbers of the business and he even shared articles on what he was doing to grow the site.

That’s how I applied the strategy mentioned above of copying Indie Hackers’ business model and adapting it to another niche. I knew that a huge percentage of startups failed but Indie Hackers wasn’t showing those stories. That’s what Failory would do.

Once I had the idea, I needed validation. That’s how I built a website in less than 2 weeks, filled it with 9 interviews and launched in on some communities. In the first week, it received +10k visits, which made me realized I should keep working on it.

90% of startups fail. Learn how to not to with our weekly guides and stories. Join 40,000+ founders.

3) Plan in Detail

A typical business plan is all about the structure or framework of your vision. Define your vision and set goals to guide your overall growth.

What will it look like in six months, three years, and beyond? What kind of resources, manpower, and capital are you going to need at different stages? What makes you different than your competitors? How are you going to build brand loyalty for customers to come back again and again?

A business plan has to do with the general road map and goals. A business strategy is how to achieve those goals.

If you don’t plan, it will be very easy to lose focus of your original vision . Your business plan is what will draw co-founders, employees, and brand advocates to you. A business plan is also a great thing to get feedback on. You may want to read our guide on how and where to find a co-founder in 2024 .

I’m particularly supporter that the plan comes only after the product is validated . There’s no sense in losing a lot of time working on a plan just to then realize nobody cares about your business idea.

On the side, the late trend seems to be towards less planning before starting the business and more planning as you move on. Startups have a lot of uncertainty about their future so business planning can sometimes be nonsense.

Planning Behind Failory

Planning for Failory didn’t come until I launched the product and I validated the idea. During the first weeks, it was just my brain and a to-do list that managed the future of the website.

Once the idea was validated, I dedicated further to planning. I took a ton of feedback from users which was helpful to define the future of the site. I started writing some marketing strategies I could think of based on the kind of persona that subscribed to Failory’s newsletter, monetization ideas based on a deep analysis of the competition, and any other interesting insight Failory’s users would share with me.

4) Get Funding?

While it’s true that you can make it with $0 (or almost $0), you will be many steps ahead if you have some funding to invest in the product.

Free tools and solutions to almost any kind of problem you may face, exist. But you will need to spend hours to get it. What you can’t afford to buy with money, will cost you a lot of time .

That’s why here are some funding methods you should consider even if your plans were starting with $0.

Bootstrapping

Bootstrapping is the minimalist way to start a business. It is starting a business on your own without venture capitalists, angel investors, or large long-term loans. Bootstrapping is completely self-funded.

Bootstrapping keeps costs low . The less money you borrow, the fewer interest costs you’ll have, the fewer promises you have to make.

For bootstrapping to be successful, it is important to figure out what you need to buy versus rent or loan, what you can outsource for cheaper, and what you can get for free that will just get the job done.

Fools, Friends, and Family (3Fs)

Every year, between 35-40% of startups receive startup capital from the 3Fs. The reason why “fools” is included is because of the risk behind investing in seed startups and the lack of investing knowledge from this group of people.

The benefits of this kind of funding are that your friends and family members won’t require a specific credit score or extensive collateral to secure their investment and that they can be more flexible in terms of interest rates and delay to pay back.

Having said that, they can end up terribly. If your startups shuts down and you’re not able to pay the 3Fs their money back, that will end many relationships.

There are many ways to get startup money if you don’t have it lying in your bank. One way is to get a loan. If you are super confident in your idea , this could work. If you feel that you can earn your loan money back in a certain amount of time, this could be a brilliant idea. You just have to be 100% sure, because if things go wrong, you will be in a very sticky situation!

There are plenty of ways to get loans so do some research to what is the best option for you.

Remember, everything is negotiable. If a loan is your only option, don’t just take the first offer anyone makes. The higher up the ladder you can go the more power someone has to give you what you want.

Grants & Local Funding

The federal, state or local government generally support startups by providing them with financial awards or zero-interest loans, particularly for beneficial projects.

It’s quite competitive to get one of these grants and it’s a long and paper-heavy process. On the side, grants generally also include a lot of supervision on where’s the money spent.

Crowdfunding

The power of the internet is real. There are many people who are in financially difficult positions, who get financial help from the public.

Crowdfunding is a legitimate way to get startup funds for your business, so don’t be afraid to advertise your crowdfunding campaign on social media and any other chance you get.

Some crowdfunding campaigns work based on donations. People are looking every day for a cause to donate to, they like helping others. Give them a cause to believe in.

Another way crowdfunding campaigns work is based on rewards. Those people who contribute to your campaign, get access to your product or get some participation on it.

Crowdfunding has become so popular that there are multiple platforms dedicated to it. Some notable websites for this are Kickstarter , CrowdFunder and IndieGogo .

How Did I Finance Failory?

As I’ve already said, Failory cost $40, and then it began to make some money which allowed me to finance further investments. Those $40 came from personal savings, so we can say I went with the bootstrapping path.

I’ve neither got a loan, grant, or money from the 3Fs nor did a crowdfunding campaign. Nowadays, the business is profitable and it finances itself.

5) Build It

The building part (coding the product, connecting with providers, setting up the office space, etc) of starting a business with no money is the hardest one if you haven’t been able to secure any funding.

If you have the abilities, knowledge and experience doing these things, that shouldn’t too hard, depending on the existing setup costs of your idea.

However, if you don’t have this characteristics, finding a co-founder that can take care of these tasks can be a great way to solve the issue, especially if they aren’t things that need to be done just one time.

For example, if your idea is to build a SaaS (software as a service) for businesses, the technical side of your business will be essential and if you don’t have the knowledge to work on it, you would need to either outsource the tasks (which can be super expensive and risky in the long term) or find a co-founder that can take care of it while you do the sales, marketing, management, etc tasks.

If your idea is to build a blog, in contrast, the technical side probably won’t be really essential and won’t require constant updates and tasks. That’s why you can probably outsource that work and avoid dividing the future profits of your business.

Another great idea is to do pre-launch sales and use that funding to build the product. Crowdfunding has made this a really common practice. We’ve recently interviewed the founder of Encharge , for example, who made $4k in pre-sales for a marketing automation tool which helped him validate his idea and get some funding to re-invest in the product.

You MUST validate your startup ideas if you want to avoid failure. In our course "Pre-Sell to Validate" we teach you an actionable framework to do it. You can get it here.

In the case you’re building an online business and don’t know how to code, you may also find useful the no-code tools . They have lately become super powerful, allowing you to build entire websites and apps without a single line of code.

There are lots of no-code tools out there, so you will probably find a great fit with your needs. In the long term, they can become pretty limiting, but they are an amazing way to build a minimum viable product and validate your idea super fastly.

No matter which path you decide to go with, remember to always build a product for your customer, not for you. Learn what your customers’ problems are through user surveys and interviews and build a solution for them.

Building Failory with No Code Tools

When starting Failory, I had 0 coding knowledge. However, I was able to build a website in 2 weeks without writing a line of code using Webflow .

Webflow is a visual website designer that allows users to drop elements and customize them a lot. It’s much more powerful than Wix and Squarespace, but still pretty easy to use. I’d say it has a bit of a learning curve but there’s a ton of material out there on how to use it.

6) Launch It

The product is finished, now it’s time to launch it.

Even if the product is not perfect, launch it . You need to avoid the “ paralysis by analysis ”, a syndrome that makes entrepreneurs feel they have to keep improving the product and adding new features, postponing its launch. There will be enough time to refine and tweak your product.

Spend some time preparing your launch. Identify where your target customer lay and find the way to promote your business there without being spammy.

Note that launch is not everything. Don’t get discouraged if you don’t get many sales during the launch week. What you aim to get is user feedback. Get to know your first users and turn them into real fans of your product; they will then take care of the word of mouth marketing.

Launching Failory and Reaching 10,000 Users

Once I had the finished site, which was far from being perfect, I prepared the launch. I shared the project on Twitter, Facebook, LinkedIn, some online communities, and email outreach.

The result was +10k users visiting the site within the first week. We got a ton of feedback from those people, though we made $0. We begin to improve the site and in a short amount of time, we got our first sponsor and we become profitable.

If you have a great product but poor marketing, you are not going to get very far. It takes both to be successful.

Social Media Marketing is one of the cheapest and best ways to get the word out. I say cheap and not free, because sometimes you’re better off putting in a few dollars for an ad. Ads on most social media platforms are underpriced, so get it while it’s hot.

Content marketing is all about giving; it’s all about providing value. It’s not the same as an advertisement. Content is a way to show what you know, what you can do, and to help people get to know you so they want to do business with you.

SEO, which refers to search engine optimization, is another free strategy that’s related to content marketing. Did you find this article on Google? It’s because we have worked its SEO so that it appears between the first results.

Lastly, cold outreach is a free strategy that if done correctly and with caution (avoid being spammy and bothering the other person), can lead to some big clients and great connections.

When working on marketing strategies without much money to invest, you will need to be creative and dedicate a lot of time .

SEO and content strategies only bring results in the long term; cold outreach requires extensive research and a lot of hours doing it with the risk of getting no prospects; social media marketing, at the beginning, may seem as talking to the wall.

However, if you have made it so far without spending any money, you are probably enough to capture those first clients.

Growing Failory to $2,500/mo

I did a ton of guerrilla marketing since day one. I leveraged the use of social networks, online communities, cold outreach and content marketing.

SEO is currently the main source of traffic for the site, but it didn’t brought any traffic for many months after I begin working on it, so you may want to combine it with other strategies as well.

I have also launched lots of side-projects as the site grew. While it began as a website of interviews with failed small business owners, I later on began adding blog articles, post mortem analysis on why have big companies failed and a list of resources for entrepreneurs.

Since 2020, I have also created an eBook about how 7 startups achieved product-market fit and have been interviewing founders that has a successful business and ask them about their struggles and mistakes. Not every success story is an easy path.

As the site began to grow, I found myself with more money to reinvest, which meant that I could also try out ads, hiring writers, buying tools that boosted the marketing campaigns, etc.

In 2021, I've put a big focus on the newsletter and I aim to grow it through referrals and quality content. Nowadays, the site receives +90k monthly users, +250k monthly page views, and makes $2,500/month through sponsorship and affiliate links.

Business Ideas to Start with no Money

Great, now that you have all the tools and knowledge to start a startup and make it throughout all the business stages without spending much money, it’s time to begin creating. Here are some ideas for you if you feel a little bit lost on where to start.

• Freelance writing is pretty popular. It only costs time and skill; of course, it costs a computer and maybe an internet connection, but if you’re reading this then I’m not too worried about that. Freelance writing is a good way to make a few extra bucks if you have the time and skill. There are already an abundance of platforms out there to find freelance writing work. I suggest looking up reviews for them first. It’s important that the job is worth the pay.
• Digital marketing is also becoming increasingly popular. Again, it doesn’t cost anything to start, but there is a pretty steep learning curve. It is a fast-paced, ever-changing complex field. Social media marketing is part of digital marketing; pick the platform you are most comfortable with and learn everything about it you can. Once you know more than the average bear, jump in. Get an internship if you can (you can get one on a tool like Acadium ), find a mentor, do whatever it takes to learn the ropes. If you run a service business you have no experience with, you risk your reputation and possible future business prospects.
• Manual labor . I say manual labor because this can be anything. Some would argue that there is a shortage of skilled or just plain dedicated workers. Lots of people want a white collared job where they can just sit at a computer and make money. So much so, that there is a ton of money just waiting to get picked up off the floor.
• You could start a cleaning service . You can clean houses, wash cars, mow lawns. Yes, you can still mow someone’s lawn and make good money. There is a guy, right now, who charges $1,200-$1,500 for ONE day’s work of mowing a few acres of weeds, and people pay!

You may also want to read business ideas for couples and business ideas for students for some inspiration!

Tips on How to Start a Business with NO Money

Get a second opinion.

To you, your idea may sound amazing. However, you may be slightly biased. You need to get an opinion from someone who will be honest with you.

It’s important to have somebody who would tell you if you’re going in the right or wrong direction or if it isn’t really complete.

Even if you don’t have a full-time partner who can watch your back every step of the way you should seek wise counsel. A second opinion could be the difference between your business taking off or taking a nosedive.

There are a few great ways to find startup advisors and co-founders. CoFoundersLab and Linkedin are two great resources where you can easily reach out to people that can help.

It’s not always best to go in needy. Remember, anyone capable of giving good advice is probably very busy. Provide value and make a connection; no one wants to feel like you are just trying to get something from them.

Stay Employed

Okay, so you have a great idea and you might even be pulling in a little money. Don’t quit your day job . Even if you’re in a job that doesn't pay much, stick with it.

No matter what you’re making, every little bit helps when starting a business from scratch. Save your money ; it will make things so much easier for you in the long run. I can’t tell you how many people were dominating their startup game until some other financial disaster or incident happened and shut them down.

Staying employed is a good way to build a buffer, keep your living expenses at bay, and fund your business by yourself. Not to say that you can’t start a business with no money, because you can, but a few extra dollars won’t hurt.

Invest your profits . Congratulations, you made your first sale and you want to start your own business, but you also really want to blow that cash you just made. After all, it’s all extra since you already have your day job, right? Wrong! Spending all your profits and not putting it back into your new business is a fatal amateur flaw. Don’t be an amateur.

For many, the first sale is a bit of a surprise. Don’t let the excitement distract you. You might not know how to start a business with no capital (or how to just plain start a business), but from the minute you make one transaction, make a plan or your success will be short-lived.

Be Social Active

When I say socially active, I mean attend events and talks. Talk with other business owners and keep updated on the latest startup news.

Search far and wide and always stay informed about what’s happening . This will allow you to meet potential investors, meet possible co-founders, educate yourself, and gain confidence. You need to put yourself out there when you plan to start a business. About 70% of jobs are obtained from networking, so staying at home won’t do the trick. Meetup is a great way to find people who are interested in the same things.

No one wants more spam mail and email, but consider signing up for newsletters to businesses that are relevant to you. Often they have free gatherings and network events that you can attend just for being on their email list.

Ramp up your social media activity. Social media is FREE advertising . It is a bit more difficult than simply running an ad that points them right to your business, but it is free.

You can greatly grow your brand awareness or product on all social media platforms, but figure out which one is best for you and stick to it. Consistency is key. Create a business page, and promote yourself on your personal profile.

There is no better way to gain eyes and attention for starting a business without money than to use the right social media platform for your business.

Pieter Levels is a great example of being socially active. He is the founder of Nomad List and Remote Ok and does an excellent job on Twitter. He has an audience of +80k followers who have helped him a lot bootstrap his businesses and make over $70,000/month.

Learn to negotiate

Negotiating is an important business skill. It doesn’t matter what you do. We all negotiate every day.

Maybe you’re thinking, “I’m not trying to be some hostage negotiator,” or, “I’m not negotiating a business take over.” The reality is, if you’re trying to get something out of someone then you are negotiating. When you’re starting a business with no money and a priceless idea you’re going to lay everything on the line.

What we get out of life is largely determined by our ability to ask.

How much do you make an hour? Negotiating for just a few minutes could be the difference of saving or making thousands of dollars. Do you make a thousand dollars a minute? You could.

Whether you’re trying to starting a startup or you’ve been at your job a long time, improving this skill will greatly alter your business and personal dealings.

Here is a quick read to get you started on the path to successful long-lasting negotiations. If you really want to do some further studying on the subject (or you just want to get a better salary or better deal on a new car), “ Never Split the Difference ” by Chris Voss, is a fantastic read. Brian Tracy , Zig Ziglar , and Dr. Larry Iverson are a few other great speakers on the topic.

Leverage free tools and resources

I’ve already said this many times, but it’s because I think the internet is full of free resources that will help you build a business and the trends seems to be to keep publishing more free stuff.

Free doesn’t mean low quality. While there’s a ton of free garbage, there are complete courses dictated by universities available on platforms like Coursera for free, if you you use your creativity on how to access them ;)

Here are 5 tools that helped me when starting Failory:

Canva : No matter what you do, you need to create a graphic. Canva is a quick pain free way to create professional-looking graphics. Canva comes complete with stock photos, template designs and layouts, and the correct sizing for the platforms you want to publish on.

Unsplash : If you want to promote your business you are going to need to create content. This tool follows Canva, because the stock photos of Canva only get you so far. You need options. To pump out lots of content you need LOTS of options, and you will always need new pictures.

Hootsuite / Buffer : I don’t want to say that these two tools are the same, but they both get the same job done. You need to stay on top of your marketing strategy. Hootsuite and Buffer are scheduling platforms where you can optimize, set, and relax. They have different insights and analysis tools, but they are essential if you don’t want to devote time every day to creating and maintaining a social media presence. As I have said before, I am no longer using these tools (I am mainly using a combination of IFTTT and Google Calendars), but I totally recommend them.

Wordpress / Squarespace / Webflow : You need a website. Wordpress is the most common, but it can be a little difficult if you are going with the .org versus the .com. The .org is far more complicated but has near limitless capabilities and plugins. Squarespace is similar to Wix but is very much about aesthetics. They are very proud of their beautiful templates. Webflow is more of a develop and design yourself platform. Basically you will be making all the changes and coding without actually needing to know how to code. All of these website builders are good, so look into them, check out reviews, and determine what fits your needs and your capabilities.

Quickbooks / Freshbooks : You made a product, and now you want to get paid. Give them an invoice. Some people are willing to pay cash, checks, or use a credit card, but if it is a B2B business they are going to want an invoice to go along with it. A few other tools for B2C are Venmo, Paypal, and Apple Pay.

Patience and Persistence Wins in the End

For everyone, the cost to set up a company isn’t low, but more people are doing in now than ever because it is possible. Starting your own business is truly one of the top ways to financial wealth and prosperity.

The internet and all the free tools out there make it possible. You just have to look. Maybe you just need a laptop, website, and business cards to start your company. Maybe you need a new wearhouse. Either way, it is possible to keep costs down when starting a business. Hang in there.

There is help out there for funding. It can add up, so consider bootstrapping first. Be prepared to pay for something if you want to get serious and make big moves. Many entrepreneurs find that the premium versions of many free tools are worth it.

If you want the best results, you need to invest in your business, and more importantly, yourself. You have social media, crowdfunding, and even the old-fashioned method of public fundraising. If you are fortunate enough to have a job, keep pushing forward and save as much as you can. If you combine these methods, you’ll find yourself with the money that you need in no time at all.

A failure to commit early on is one of the top three reasons startups fail. If you want it then go for it, know it'll be hard work. Have patience and don’t give up.

Frequently Asked Questions

What is the easiest business to start with no money.

Here are some of the easiest businesses to start with no money: freelance writing, social media marketing, flippling websites, re-sell sneakers or tickets, design or development services and start a blog.

What Are The Steps to Starting a Business With No Money?

Here are the 7 steps on how to start a business with no money: 1) Research, 2) Come up with a great idea, 3) Plain in detail, 4) Get funding, 5) Build it, 6) Launch it, 7) Grow it.

90% of startups fail. Learn how not to with our weekly guides and stories. Join +40,000 other startup founders!

An all-in-one newsletter for startup founders, ruled by one philosophy: there's more to learn from failures than from successes.

100+ resources you need for building a successful startup, divided into 4 categories: Fundraising, People, Product, and Growth.

Trending Stories

15 Legit Ways to Make Extra Cash

6 Smart Strategies to Save Money on Car Insurance

How to start a business with no money: your 2024 guide.

This article was subjected to a comprehensive fact-checking process. Our professional fact-checkers verify article information against primary sources, reputable publishers, and experts in the field.

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies .

Becoming an entrepreneur is a dream to many, but opening your own business may feel difficult without enough cash. The reality is that it’s doable if you take the right steps — including choosing the right kind of business and exploring different financing options.

This guide will explain everything you need to know to start a business with no money and get results for the effort you put into it.

Featured Business Checking Account

Earn up to a $800 bonus when you open a new, eligible U.S. Bank business checking account online with promo code Q2AFL24 and complete qualifying activities. Subject to certain terms and limitations. Offer valid through August 30, 2024. Member FDIC.

Key Takeaways

5 steps to starting a business with no money, how to fund a new business, how to establish legal grounds for your business, faq about starting a business, starting a business with no money: bottom line.

• Starting a new business as a side hustle can help you keep a stable income from your current job while you develop your business.
• Starting with a business plan is essential, whether you're starting a company with or without money.
• There are various funding sources you can use if you don’t have the capital needed for your business, including business loans and lines of credit.
• You can bootstrap your business by starting with limited capital and reinvesting your revenue into the business as you begin to make sales.

The process of starting any business typically looks similar regardless of the type of business you’re starting and the amount of money you have to get it off the ground.

You need to define what you plan to offer through your business; think about how the service, solution, or product you offer can be profitable; and make sure you're being realistic about your expectations.

If you don't have the capital needed, you also need to consider how to fund your business by using one of the various options you may have available.

Let’s go over the five key steps you should take to start a new business.

1. Identify your skills and talents

When you’re considering how to start a business , your first step can often be identifying what your strengths are.

Think about what you enjoy doing and what motivates you, and then make a list of what you can offer that would provide value to your potential customers. What can you offer that people would pay you for?

You should also consider what you've been successful at in the past, what sets you apart from others, and what your education and interests are. This will guide you towards deciding what type of business it makes sense for you to start.

2. Research your market and competition

Your business needs customers in order to be successful.

After you decide on a business idea based on your skills and talents, you should identify what the market is for your business. To do this, research how much demand there is for the product or service you plan to offer and who your potential customer base is.

It's also a good idea to look into other competitors while doing your market research. The more competition there is, the harder it can be to break in — unless you have a unique approach others haven't yet thought of.

You can also look into what your competitors seem to get right and learn from the things they got wrong.

3. Develop a business plan

The next crucial step to starting a successful business is to write a business plan . Your business plan should lay out your business's future path.

You can make a detailed plan addressing everything needed to get your business up and running. This could include the following:

• A description of your business
• A market analysis showing your target market and competition
• Information about your chosen business structure and your leadership team
• Details about the services and products you will offer
• A marketing strategy to drive sales
• Funding requests if you want to borrow money
• Projections for your potential business expenses and profits

Depending on your business idea, you may not have to go into detail on each of these aspects. Ultimately, a business plan should help you clarify your vision, test your assumptions, communicate your value proposition, and secure funding or partners for your business.

4. Use available resources and tools

If you're trying to figure out how to start a business, you should use a creative approach when it comes to finding the help and support you need. Fortunately, plenty of tools and resources can help you open a business. These resources include the following:

• The Small Business Administration: The SBA is a U.S. federal agency that supports small businesses. It can help you learn about writing a business plan, registering your company with appropriate authorities, and even expanding once operations are underway.
• Companies that help you start: Some companies, such as ZenBusiness, specialize in providing online services and tools for starting and growing a business. ZenBusiness can help you form a limited liability company (LLC), build a business website, stay compliant with state and federal regulations, and more. Learn more in our ZenBusiness review .

Create Your LLC in Minutes

• E-commerce platforms: Depending on what you offer through your business, you may need an online store where you can list your services and products. Platforms like Shopify provide the tools needed to set up and operate an online store that supports receiving payments from your customers.

Create an Ecommerce website backed by powerful tools

• Social media: Using social media can help you market your business, products, or services with little to no cost. Platforms like Instagram or TikTok allow you to set up a profile for your business and may help you put what you offer in the spotlight. You can also tap into your existing social network to connect with people in your industry and find customers or employees.

5. Hustle and be creative

Starting a business is going to take ingenuity — especially if you start with little or no money. Hustling and being creative are two important mindsets that can help you move forward, even when things get tough.

Hustling means working hard, smart, and fast to achieve your goals. You can do this by leveraging your existing skills, building the networks you need, promoting your business through low-cost means, and remaining flexible and adaptable.

Being creative, on the other hand, involves thinking outside the box, finding innovative solutions to problems, and differentiating yourself from the competition. You can use your creativity to find a niche for your business and develop a minimum viable product that can achieve sales in this niche.

Although it’s possible to bring a business idea to life without a lot of money in your bank account, your business will typically need some capital for startup costs, even if it’s an online business that doesn’t have a physical location.

Fortunately, there are a number of options that can help you get the amount of money necessary to get up and running.

1. Seek out a small business loan

Chances are you’ll need at least a little bit of cash to buy equipment and materials, open a storefront, or get an online e-commerce store up and running.

A small business loan is a type of loan many banks and credit unions offer to startup companies and new or small businesses. To get this type of loan, you typically need a good personal credit score and to be willing to personally guarantee the loan by agreeing to pay off the loan even if your business fails.

Small business owners may also qualify for a small business administration loan . These SBA loans are guaranteed by the Small Business Administration although they are offered through private lenders. Because of the government backing, lenders have more relaxed criteria when considering whether a business owner qualifies.

You can find an SBA lender using the Find Lenders tool offered by the Small Business Administration.

BusinessLoans.com

2. Access a line of credit or a business credit card

Lines of credit and business credit cards are two forms of revolving credit, meaning you can borrow and repay money up to certain limits and then borrow again. This is where they differ from business loans since you can use them to borrow over and over again.

You’re typically required to make at least minimum payments and not exceed your credit limit when you open up and begin using a line of credit or a business credit card.

Here is how these two options work:

• A business line of credit: Allows you to borrow up to a certain amount of money. As you repay what you've already borrowed, you can draw from your line of credit again. Keep in mind that you’re also required to pay interest charges accrued on the amount borrowed. You may also have to pay some fees, such as origination fees, annual fees, or draw fees.
• A business credit card: Allows you to access credit up to a certain limit. You can use your business credit card for business expenses and purchases, as long as you don’t exceed your credit limit and pay back what you borrow plus interest if you carry over a balance from one billing cycle to another. You may also have to pay some fees, such as annual fees, transaction fees, or late fees.

Learn more about the differences between a business line of credit versus a credit card and explore the best small business credit cards .

3. Reinvest your profits

Regardless of your business model, you won't just need money to start — you’ll also need money to continue operating and growing. The good news is, customers can start to fund you. As you begin earning money from selling products or services, you can reinvest the money you make into keeping the doors open and/or expanding.

The process of starting with a lean budget and then using customer funding is often referred to as bootstrapping , and it's become a popular way for companies to get started without a huge upfront investment.

4. Utilize crowdfunding

If you can get other people to believe in your business, crowdfunding could be a great way to get started without borrowing.

To begin, you could put your idea on crowdfunding platforms like Kickstarter or Indiegogo. You'd need to describe your idea, come up with a product or a service, and ask people to contribute money to bring this product or service to life. You could offer the product or service in exchange for their contributions.

Crowdfunding may work well if you can entice people to invest their money in exchange for the product or service you plan to build.

5. Apply for business grants

As you explore funding methods, you can consider grants that encourage or support entrepreneurship.

Government agencies, as well as private individuals and entities, provide small business grants that can help new businesses find the cash flow they need. Grants don’t have to be paid back but are instead designed to provide deserving individuals or new business ventures with startup capital.

You can use resources like the Small Business Administration to help find and apply for grants. Make sure to research the available grants, check your eligibility, register on the online platform if there is one, and submit your application before the application deadline for each grant.

Remember to stay vigilant when you’re considering small business grants, as some scammers target would-be business owners. Avoid paying a large fee for the promise of help securing grant money, too, as legitimate grants will offer applications you can complete on your own without paying for a third-party service to help.

Even if you’re operating a business on your own, you still need to establish a legal entity for it. This doesn’t always mean registering it with the state or federal government because you can operate as a sole proprietor.

However, figuring out the business structure you plan to use is essential for determining how you will be taxed, protected from liability, managed, and funded. Let’s explore how to start.

1. Choose a business structure

You can choose your legal connection with your business by understanding the different types of businesses . Some of the most common business structures are the following:

• Sole proprietorship: With this option, you and your company are one entity in the eyes of the law. You don't file separate business taxes but simply declare profits and losses on your personal returns. You're 100% liable for your business.
• Partnership: This is a simple business structure used when two or more people start a business together. You could start a general partnership where both partners are liable for the business or a limited partnership where only one partner is 100% liable for the business while the others have less control but also less legal responsibility. Profits and losses are passed through to individual partners.
• Limited liability company (LLC): When you form an LLC, your business becomes its own separate entity, giving you more protection from personal liability if something goes wrong. An LLC usually dissolves if a member leaves or a new member joins, so these are best for smaller companies that won't change hands much. LLCs pass profits and losses to owners.
• C corporation: C corps are separate legal entities that file their own taxes and pay taxes on their own profits and losses. While this provides a lot of liability protection for the owners, it also means that the income can be double-taxed. That's because taxes are paid on profits by the corporation and are then paid by owners when they receive a share of the profits.

There are some other business structure options, such as S corps and non-profit organizations. Make sure you research and understand the tax treatment and liability protections that come with the structure you choose.

2. Register your business

Your business may or may not need to be registered, depending on where you live and what kind of company you are starting. For example, you might be able to operate as a sole proprietor without registering your business. However, LLCs typically must be registered.

If your business needs to register, you should contact the appropriate authorities in your state and local government to fill out the forms needed to register your business name. Business services such as ZenBusiness and LegalZoom can also help you register your business for a fee.

Learn more about the differences between ZenBusiness versus LegalZoom .

3. Acquire tax IDs for your business

Your business may need a separate tax ID if you are creating a separate entity such as a corporation. You will also need a tax ID for your company to hire employees.

You can apply with the Internal Revenue Service (IRS) to acquire an employer identification number (EIN). You will have to specify what type of business entity you’re running. You'll need to add information such as the company's legal name and the type of activity it is engaged in, as well as who the managing members are.

The IRS will then review the information you submit and provide you with the EIN if you’re approved.

4. Apply for required licenses and permits

Make sure to research whether your state or local governments require any type of license or permit for the type of business you plan to start. For example, restaurants that serve alcohol would need to apply for a liquor license.

Once you have identified the licenses and permits you need, you can apply for them online or by mail, depending on the agency and the process. You may need to provide information such as your business name, address, contact details, tax ID number, legal structure, business activities, and other relevant documents.

You may also need to pay some fees for applying and processing the licenses and permits.

Learning how to make money by starting a business with no or little money can be challenging, but the potential reward may make your effort more than worth it. Remember that getting a company off the ground when you have no money is possible, especially when you have a plan and use funding methods that can help you start.

You may begin your business as a side hustle while maintaining your day job or full-time job. Use free resources or low-cost options to maintain your expenses at a level you can manage. Keep in mind that the first year can often be the most challenging when starting a business, but hard work may pay off in the long run.

More from FinanceBuzz:

• 7 things to do if you’re barely scraping by financially.
• Do you owe the IRS >$10K? Ask this company to help you eliminate your late tax debt.
• 12 legit ways to earn extra cash.

Banking Designed for Freelancers

Lili Banking Benefits

• Save money when even if your income fluctuates
• Track personal and business expenses
• Maximize your freelance tax savings

Author Details

• Credit Cards
• Best Credit Cards
• Side Hustles
• Savings Accounts
• Pay Off Debt
• Travel Credit Cards

Want to learn how to make an extra $200?

Get proven ways to earn extra cash from your phone, computer, & more with Extra.

You will receive emails from FinanceBuzz.com. Unsubscribe at any time. Privacy Policy

• Vetted side hustles
• Exclusive offers to save money daily
• Expert tips to help manage and escape debt

Hurry, check your email!

The Extra newsletter by FinanceBuzz helps you build your net worth.

Don't see the email? Let us know.

How To Get a Startup Business Loan With No Money

You may have a great business idea, but without money you’re not sure you can get it off the ground. If you’re struggling with ideas for getting the funds you need to start a business, keep reading.

Here we’ll share small business loan and financing options for entrepreneurs who don’t have a lot of money to sink into their business. 

Can I Get a Business Loan if I Have No Money in the Bank?

It is possible for small business owners to find business loan options to start a business even without a lot of money. However, it will be challenging. The type of loans, terms and qualification requirements can vary a lot, depending on the type of financing. 

Here we’ll explain options and help you decide which ones may fit your business needs. 

Access better funding options with a solution you can’t get anywhere else

Get a customized shortlist of your best options when Nav’s technology compares your business information to our network of 200+ partners

How To Get a Business Loan if You Just Started?

First, it’s helpful to understand how most lenders evaluate business loan applications. Most small business lenders and financing companies look at some or all of the following factors:

Creditworthiness is important to many lenders, and most require good or excellent credit scores. Some small business lenders will require a personal credit check, some check business credit, and some check both. New businesses will often rely on personal credit history as they have not established business credit scores. 

Most business financing sources prefer to extend credit to businesses with demonstrated revenue.  Documentation in the form of business bank statements is common, and lender requirements often include specific amounts for minimum monthly or annual revenues. Even online lenders often have minimum revenue requirements. This, of course, makes it difficult for startups to qualify. 

Time in Business

Because new businesses have a high failure rate, many business lenders will require a certain amount of time in business. This is a hurdle for many startups. One workaround: form a business entity (corporation or LLC) as soon as possible, even if the business isn’t making significant money. 

These factors can make it difficult for new businesses to qualify for loans. However there are some workarounds. The two main ones are:

Personal Guarantee

Provided you have good personal credit scores, some types of financing may allow you to qualify in part by providing a personal guarantee . This gives the lender the option of pursuing your personal income and/or assets if you default, and an extra level of reassurance that you will likely make a serious effort to pay back the debt. 

Collateral is another way lenders help increase the likelihood a loan will be repaid. If you don’t have money in the bank, collateral could come in the form of home equity or perhaps personal assets like a car that’s been paid off. 

What if you don’t have money or collateral? Or what if you have bad credit? There are other options we’ll explore in this article. 

Accelerate your path to better funding

Build business credit history, see your business credit-building impact, and secure new funding options — only with Nav Prime.

Can You Get a SBA Loan To Start a Business?

Yes it may be possible to get an SBA loan to start a business. The U.S. Small Business Administration generally doesn’t make loans (except Disaster Loans), instead it guarantees them. Loans are made by participating financial institutions, usually banks. 

There are some advantages to SBA loans. Among them: 

• Low interest rates
• May require low (or no) down payment
• May require little or no collateral
• Attractive repayment terms 

Still, these aren’t considered the easiest loans to get. Your business must be for-profit, located in the US, and not in a restricted industry. 

While the SBA doesn’t have a minimum credit score requirement for most loans, acceptable credit is required. Lenders almost always require good to excellent personal credit to qualify. While many SBA loans can’t be declined solely for lack of collateral, if collateral is available, the borrower may be required to pledge it— and that may include home equity. 

You must be able to demonstrate that you will be able to repay the loan from future cash flow. That means a solid business plan with financial projections is a must. 

More importantly, SBA 7(a) startup loans or loans to purchase a business require 10% owner equity injection. The source of these funds can vary, but if you have put no money into your business and have no means of doing so, you may have trouble qualifying for a 7(a) loan for your startup. (You may still want to explore SBA microloans , which offer up to $50,000 in funding.) 

Is It Hard To Get a Business Loan To Start a Business?

It can be easy or hard to get a business loan, depending on the type and the loan amount, as well as your personal qualifications and business experience. 

For example, small business credit cards can be easy to get if you have good personal credit and income from other household sources (a spouse who is working, for example). 

Crowdfunding can be an excellent source of financing for certain types of startups, but it takes a lot of work to put together a successful crowdfunding campaign. 

Traditional bank loans are another coveted source of funding. While it’s not impossible to get bank loans for startups, banks will carefully scrutinize the business plan, as well as the founder’s experience in the industry. They will likely require some sort of down payment or collateral, and a personal guarantee. The application process will be involved. 

Here are a couple of ways to prepare to get startup capital for your business:

• Create a business plan . The main purpose of your business plan in this case is to have a clear idea of how much money you’ll need to get your business off the ground, and when you’ll need it. It will force you to think through your startup costs, create financial projections, and plan for upcoming needs. Even if you never show your plan to a banker, you’ll have a road map for the funding your business needs. 
• Check your credit. A brand new business won’t have business credit yet, so check your personal credit scores. Keep in mind you can also begin to establish business credit right away, even if your business isn’t making money yet. The sooner you start, the sooner you’ll have a business credit rating that opens up additional funding options. 
• Open a business bank account . Using a business bank account to take in money and pay expenses will make it a lot easier to track your business financial health and take advantage of possible tax deductions. Fortunately, there are a number of providers offering free business checking with very low opening deposit requirements. 

How Can I Fund My Business With No Money?

Many businesses are able to start with very little capital (money) up front. That’s not always the case, of course. If your business needs equipment (say a food truck , or inventory), expensive business licenses, or just the money to form an LLC or corporation , even a few hundred dollars in startup costs can be a hurdle. 

In addition to the financing options we discuss in this article, here are several other other business funding options you may want to consider. They aren’t easy to get, so think of them as an added bonus if you are successful. 

Accelerators and Incubators : These are organizations designed to help startups succeed. They often provide seed money, mentorship, office space, and other resources in exchange for equity in the company.

Business Competitions : Universities, organizations, and even some private businesses hold business pitch competitions where the winner gets a cash prize. This not only provides funding but also offers visibility and feedback for your business. 

Grants : Private organizations sometimes offer small business grants to promote entrepreneurship in specific industries or demographics. Unlike loans, grants do not need to be paid back, but they often have specific criteria and can be highly competitive. The vast majority of grants are made to existing businesses. Note that the federal government does not offer grants to start a business. 

Another option to consider: purchase a business from a seller who is willing to finance at least part of the sale. While most lenders want some kind of down payment from the borrower, it may be possible to structure a sale where the seller holds a note until you are able to qualify for a loan on your own. 

Best Places To Find Get a Business Loan With No Money

Here are top options to consider if you need startup funding but don’t have a lot of money on hand. 

Let’s explore these in more detail:

Business credit cards : One of the easiest sources of capital for new businesses, credit cards can provide a business line of credit that can be used to finance startup or working capital costs. Many cards are available based on the owner’s personal credit score and income from all sources, not just the business. Credit cards with 0% intro APRs can provide up to a year (or more) of no-cost financing, but be careful. They will charge much higher interest rates on debt remaining after the intro APR expires. 

100+ Business Credit Cards in One Click

Business credit cards can help you when your business needs access to cash right away. Browse your top business credit card options and apply in minutes.

Crowdfunding : Platforms like Kickstarter, Kiva, Indiegogo and more allow entrepreneurs to raise small amounts of money from a large number of people. This can provide capital as well as create a loyal market for the business. Credit checks are unusual. But it can be expensive and time consuming to run a successful crowdfunding campaign. 

Microloans : These are smaller loans usually made by nonprofit organizations trying to spur economic growth and help underserved communities. Eligibility requirements may be flexible, loan terms are favorable and these loans often come with assistance to help the business succeed. 

Vendor Terms : Here your suppliers allow you to buy things you need for your business and pay for them later; net-30 terms means payment is due in 30 days. While this isn’t going to provide cash upfront, it can help with cash flow. 

Equipment Financing . Much like supplier financing, equipment loans or leases won’t put money in your bank account but can help you get the items you need to make and sell your product or service. 

Angel Investors : These individuals or groups of investors provide capital to startups in exchange for ownership equity or convertible debt. Angel investors can be found in professional networks or through platforms like AngelList.

Venture Capitalists (VCs) : VCs are professional groups that manage pooled funds from many investors to invest in startups. They are usually looking for a business with traction, rather than businesses at the idea stage. 

Compare Your Financing Options With Confidence

Spend more time crushing goals than crunching numbers. Instantly, compare your best financial options based on your unique business data. Know what business financing you can qualify for before you apply, with Nav.

Gerri Detweiler

Education Consultant, Nav

Known as a financing and credit expert, Gerri Detweiler has been interviewed in more than 4000 news stories, and answered over 10,000 credit and lending questions online. Her articles have been widely syndicated on sites such as MSN, Forbes, and MarketWatch. She is the author or coauthor of five books, including Finance Your Own Business: Get on the Financing Fast Track. She has testified before Congress on consumer credit legislation.

Have at it! We'd love to hear from you and encourage a lively discussion among our users. Please help us keep our site clean and protect yourself. Refrain from posting overtly promotional content, and avoid disclosing personal information such as bank account or phone numbers. Reviews Disclosure: The responses below are not provided or commissioned by the credit card, financing and service companies that appear on this site. Responses have not been reviewed, approved or otherwise endorsed by the credit card, financing and service companies and it is not their responsibility to ensure all posts and/or questions are answered.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name and email in this browser for the next time I comment.

10 Simple Tips to Write a Successful Business Plan

"The absolute biggest business plan mistake you can make is to not plan at all." So writes Noah Parsons in his helpful blog post 17 Key Business Plan Mistakes to Avoid in 2023 . But how does one pull together all of the necessary components of a cohesive plan? It can feel overwhelming.

Eric Butow, CEO of online marketing ROI improvement firm Butow Communications Group, has teamed up with Entrepreneur Media to update the second edition of our best-selling book Write Your Business Plan to provide you with a simple, step-by-step process for creating a successful business plan. In the following excerpt, he gives ten tips to gather all of the critical information you will need to succeed.

1. Know your competition.

You need to name them and point out what makes you different from (and better than) each of them. But do not disparage your competition.

2. Know your audience.

You may need several versions of your business plan. For example, you may need one for bankers or venture capitalists, one for individual investors, and one for companies that may want to do a joint venture with you rather than fund you.

3. Have proof to back up every claim you make.

If you expect to be the leader in your field in six months, you have to say why you think that is. If you say your product will take the market by storm, you have to support this statement with facts. If you say your management team is fully qualified to make the business a success, be sure staff resumes demonstrate their experience.

Order Write Your Own Business Plan Now and Get 1 Month of Free Access to Business Planning Software Liveplan Premium

• Easy step-by-step business plan generator
• Built-in financial calculators
• 500+ sample plans and templates

4. Be conservative in all financial estimates and projections.

If you feel certain you'll capture 50 percent of the market in the first year, you can say why you think so and hint at what those numbers may be. But make your financial projections more conservative. For example, a 10 percent market share is much more credible.

5. Be realistic with time and resources available.

If you're working with a big company before you buy a business, you may think things will happen faster than they will once you have to buy the supplies, write the checks, and answer the phones yourself. Being overly optimistic with time and resources is a common error entrepreneurs make. Being realistic is important because it lends credibility to your presentation. Always assume things will take 20 percent longer than you anticipated. Therefore, twenty weeks is now twenty-four weeks.

6. Be logical.

Think like a banker and write what they would want to see.

7. Have a strong management team.

Make sure it has good credentials and expertise. Your team members don't have to have worked in the field. However, you need to draw parallels between what they've done and the skills needed to make your venture succeed. Don't have all the skills you need? Consider adding an advisory board of people skilled in your field and include their resumes.

Write Your Own Business Plan is available now at Entrepreneur Bookstore | Barnes & Noble | Amazon

8. Document why your idea will work.

Have others done something similar that was successful? Have you made a prototype? Include all the variables that can have an impact on the result or outcome of your idea. Show why some of the variables don't apply to your situation or explain how you intend to overcome them or make them better.

9. Describe your facilities and location for performing the work.

That includes equipment you use to create your products and/or services. If you'll need to expand, discuss when, where, and why.

10. Discuss payout options for the investors.

Some investors want a hands-on role. Some want to put associates on your board of directors. Some don't want to be involved in day-to-day activities at all. All investors want to know when they can get their money back and at what rate of return. Most want out within three to five years. Provide a brief description of options for investors, or at least mention that you're ready to discuss options with any serious prospect.

To dig deeper, buy Write Your Own Business Plan and get 1 month of free access to business planning software Liveplan Premium.

How to Write an Online Business Plan in 2024

Written by Vanessa Petersen on July 26, 2023 Blog , Sell Online .

You’ve committed to turning your ecommerce or online business idea into something real. You want your small business to produce revenue and change the course of your life, but what’s your first step in realizing your dream? Developing a plan. If you’re not sure about how to write an online business plan, you’ve come to the right place.

One of the most essential tasks involved in starting any kind of business is to write a business plan. An online business plan won’t look that different from a traditional business plan and will include many of the same elements.

In this post, we’ll show you how to write an online business plan, including all the components and sections. We’ll also walk through how WooCommerce can help you put your plan to action and achieve your business goals.

Why write a business plan? 

Starting your own business is a great experience and something that will shape your life, fill you with self-confidence and independence, and inspire other people around you. A new business is also a serious endeavor that will take time, money, sweat, lots of decisions, and a degree of risk.

A traditional business plan template helps you document and keep track of your business goals, challenges, opportunities, and all the steps and processes involved with making your idea work. It will help you conduct thorough market research and set you up for success.

When you write a business plan, it can confirm that you’ve found the best online business to start , or provide clarity about the need to pivot.

It details all the things you will need to do in order to successfully launch and grow your business, and may include revenue projections, timelines for specific goals, concept art for products, and architectural drawings for any brick and mortar aspects of your business. 

Business plans help create a structure for your company’s development and keep you grounded in reality, focused, and not distracted by less important matters. 

If you have more than one person helping run the business, the business plan also keeps everyone unified around the same set of goals and objectives. 

Another reason to write a business plan is for situations where you are presenting your idea to someone else and asking them to invest. In that scenario, your business plan is also a sort of sales document. It makes the argument for why your business idea is so good and well-considered that an investor should want to be a part of it. 

But even if you’re self-funding your entire business — which is more common with online businesses — you still want to write the plan for the reasons given earlier.

The benefits of running an online business

Starting an online business or ecommerce store offers many of the same great benefits as any other business, but without as much risk. If you’re thinking of starting a business, here’s why an online one is a great option:

It has low startup costs

Without a storefront, you eliminate so many costs of running a business. With all the bills that come with having property — like rent, parking, furnishings and decor, etc. — there’s a much higher investment required to start a brick-and-mortar-based business. Online businesses still have startup costs, but they are much lower. 

It gives you freedom over your schedule

With an online business, you have more freedom to set your own hours, because you don’t always have to be open during the usual times. You can build your business to suit the lifestyle you want. Rearrange your time to get things done in the fastest possible way and take time off when you need it. 

You can start small

Once you have a location, it’s yours, and you have to make it work. With an online business, you can start very small, offering just a few products or even just a single service. You can more easily test the waters without making huge commitments with inventory, and other physical investments.

You can more easily pivot

If your online or ecommerce business doesn’t do as well as you expected, it’s easier to pivot and adapt to something new because you haven’t committed so much to making your original idea work. There are many business success stories where the business owner adjusted their idea after gaining some experience, and then it took off. It’s a lot easier to do that when you aren’t tied to a physical location.

But, there’s one thing online businesses have in common with every other type of business: You need a robust business plan to help guide your idea from concept to a successful reality that makes money and fulfills your dreams and goals. 

So, let’s get into business planning. 

How do I write my own online business plan?

Most formal business plans and business plan templates include seven sections, plus an executive summary. You’ll need to keep in mind who you’re writing your business plan for. If you are taking this to potential investors or will be seeking a business loan, your business plan needs to sell the idea of your business as a great investment opportunity and communicate the skills, expertise, and commitment you personally bring to the table. 

Here are the key sections of a traditional business plan format:

• Executive summary
• Company description
• Market analysis
• Organization and management
• Service and product line
• Sales and marketing plans
• Financial projections
• Funding request (if working with investors or partners)

Here’s a brief look at each step of creating an online business plan:

Draft an executive summary

In the executive summary, the first section of almost every business plan template, you’ll present your vision and focus on building excitement. If the business plan is a sales document, the executive summary is the lead. It gets the reader engaged and excited to hear more. 

Your executive summary should achieve two goals:

• Deliver the basic facts about your business
• Motivate the reader to keep going and get them excited about your idea

What facts should you include? Whatever helps the reader understand your business idea. Describe the industry and niche. Mention the target market. Briefly state the needs or problems your products and services will be solving. Touch on the potential for growth in terms of revenue and customers. 

For motivation, describe your mission statement and company values. What will set you apart from the competition? What is your value proposition as a business owner? What makes you different? Again — keep this brief. You’ll elaborate later. 

It might be a good move to write all the other sections first, then finish with the executive summary so it will be the most concise and best version of how you describe your business.

Write a company description

Here, you’ll give a brief overview of your company. What are your strengths, skills, and areas of expertise as a business owner that will position you for success? If you have a compelling story behind why you’re starting your business, you can include that too.

Conduct a SWOT analysis 

If you’re not sure where to start, consider doing a SWOT analysis , which is a diagram outlining your strengths, weaknesses, opportunities, and threats. 

It’s a common part of many business plans and will help paint a realistic picture of what your business can achieve, and what stands in the way. You won’t include all of this in the company description, but your strengths and opportunities may fit here. 

Create a mission and vision statement

The company description is also the place to create a mission statement and a vision statement. What’s the difference between these? 

The vision is where you’re going, the mission is how you’ll get there. A vision statement paints a picture of a future reality for your customers and perhaps the world at large, as a result of your company’s influence. A mission statement expresses how you will achieve that.

The company description can elaborate on your vision and mission beyond just a single sentence, and later you can fine-tune what you write into a succinct pair of statements. Feeling some writer’s block? See company description templates by industry for some inspiration.

Include any unique attributes

If your company will involve particular attributes such as manufacturing, supply chains, dropshipping, affiliates, coaching or advising, online courses, or other relevant particulars, include that in your company description, too. 

State your business location, industry, niche, and other details

Also, state the location of your business, even though it’s online. Name your industry and niche target market again, and describe the nature of your company. For example, is it an ecommerce business, a consulting firm, delivery service, wholesale, or ad-based website? These are just some of many types of online business structures. 

You may also want to include whether your business is in any special class of business that might position it for special loan or grant opportunities like women-owned businesses or veteran-owned businesses.

After reading your description, readers should have a good understanding of what your business is about, why it exists, and how it works. Here’s a detailed look at company descriptions , with an example.

Perform a market analysis

A market analysis uses industry research to assess the scope of your business’s target market and describe the current competition in your industry. It can help you estimate the potential for success and prepare for the challenges you may face when you launch your online business or ecommerce shop.

Doing this research, and including it your business plan, can also help you:

• Identify industry trends
• Pinpoint opportunities 
• Diminish risks and reduce costs
• Generate new ideas for products and services
• Learn from the failures and shortcomings of your competitors
• Find ways to stand out from your competitors
• Discover new markets
• Refine your marketing plans

Now let’s dig into the elements involved in a thorough market analysis.

Understand your audience

Here, you will explain in detail who your target customers are and why they want or need what you’ll be selling. What problems or needs does your product solve? What will motivate people to buy from you? And why can’t they get it somewhere else just as easily? An ecommerce business competes against other ecommerce businesses as well as brick-and-mortar stores and shopping malls. Stores with omnichannel strategies compete with both. Why would someone choose you?

Share your key customer demographics, psychographics, and interests. Who will you be serving? What drives them? 

What are their values? If your product, service, or personal brand will appeal to a customer segment that also shares particular values, that’s a strength, not a weakness, and you can use that to win them over. 

Perform customer segmentation

Break down different categories of target customers your business plans to serve. One category could be age. Another might be life situations such as retirees, parents, divorcees, or living with older relatives. You could create a segment of people with particular health conditions, or who live certain lifestyles. 

But you can also get way more specific than that. Runners are different from hikers, who are different from bikers, yoga enthusiasts, and gym enthusiasts. Different supplements, philosophies about food, motivations for eating various foods — all of these present near endless possibilities for more narrowly defining your customer segments, all under the broad category of ‘health.’ And you might serve multiple segments. 

The more customer segments you know, the more effectively you can market to them. In an online store, good product descriptions call out the various customer segments that product is designed for.

Also, give a sense of the potential size of your target market. How many people need what you’re selling? Show how this market is large enough to justify your business and drive revenue. You might do this by studying revenue reports from other companies in your industry. Or look at specific products related to yours and research their sales and revenue performance. 

You may also perform a survey of some kind, or an online quiz, and use that to express the needs your potential customers have that aren’t currently being met.

Perform a competitive analysis

Study your competition. What are they doing well? What areas are they underserving? Where are they underperforming? Make note of what other companies in your industry are struggling with or failing at so that you can deliver something more valuable and gain a competitive advantage.

It could be product quality, customer service, or selection. Maybe their ecommerce store is badly designed and hard to use. Perhaps there’s a huge industry serving the masses, but customers who have more particular tastes or needs aren’t being well-served by the big companies. Those customers might spend more on something that delivers what they really want. 

Maybe your key competition has been rocked by scandal. Maybe a company went out of business, was sold, or closed down due to retirement and there’s an opening in the market you want to leverage. 

The main point of the competitive analysis is to persuade investors that there’s an underserved market that your business plans to cater to. You must be able to promise something that no one else is currently delivering. Otherwise, why should your business exist? Put them at ease by demonstrating proper market research.

Refer to your SWOT analysis and present any potential threats from the competition here, too.

Outline management and organizational structure

Next, present your management and legal structure. Is your company an LLC, sole proprietorship, S corporation, partnership, or some other arrangement? Who’s in charge of what? If you have different departments, list out the leadership for each one. If relevant, you might even include some information about the expertise of your leaders concerning the areas under their charge and the tasks they’ll be performing.

Remember — if your business plan will be used to persuade investors to help fund your business idea, this sort of information will reassure them that your company has strong and competent leadership. 

If there’s a chain of command, use a diagram or other method for laying out who reports to whom. 

List your products and services

What are you selling? You’ll touch on this briefly in the earlier sections, but here is where you’ll expand on the details. If you have an array of similar products, such as food flavors or clothing variations, list as many as seem relevant. But focus on the spirit of the business plan — you’re simply communicating what your business is about, not listing every SKU in your projected inventory. 

Also, include information about your products such as quality, durability, expirations, patents, and whatever else will give a clear picture of what you’re selling.

For service businesses and memberships that may include multiple packages, bundles, or tiers, describe each of these so your readers get a sense of how you’ll appeal to different types of customers and price points. 

Develop a sales and marketing strategy

Having products is great, but how do you intend to sell them? How will people find your business? How will anyone know you exist? And once they know, what will motivate them to buy from you and not from your competition? What is your unique value proposition — the thing that sets you apart from your direct competitors?

You’ll need to develop an initial marketing plan to help promote your business, products, and services to your target customers.

And remember, competition isn’t limited just to other businesses. Sometimes, competition is against the customer’s time, or their budget, or mere indifference — the conflict between doing something and doing nothing. Your SWOT analysis should touch on several of these potential barriers to the success of your online business.

Your marketing plan will obviously change over time, but give your readers and potential investors a sense of how you plan to launch and grow your business. 

Discuss media channels you plan to use, such as pay-per-click (PPC) ads , social media , email marketing , affiliate marketing , direct mail, referrals, joint ventures, search engine optimization (SEO), webinars, influencer marketing , and live events. Describe the ones you actually plan to use, and explain the core strategy you’ll begin with and how you will measure success. 

Also, include a sense of your marketing budget. If you will have a dedicated marketing team, or actual sales professionals using a particular process or sales script, discuss that as well. 

For ecommerce businesses, include a discussion of how you plan to leverage platforms like WooCommerce, which features a host of extensions that can help manage your business , engage customers, save money, and promote growth .

Make financial projections

You’ve made a lot of claims in your business plan, but how will your investors be convinced of your future success? At some point, you have to show them the money. 

If this is a brand new business with no income, where will your finances come from for the first year? Give realistic financial projections for anticipated profits and losses, as well as growth expectations for the first five years. Include financial documents if you have them, including profit and loss statements, balance sheets, and cash flow statements. Include costs of employment, manufacturing, and other investments both one-time and ongoing.

Your financial projections should reference your:

• market analysis 
• anticipated sales volume 

Investors will feel more confident when they can see your business plan does not rely entirely on just one or two ‘wins.’ For example, if your entire plan hinges on selling on eBay or Amazon , what happens if Amazon suspends your store, changes the terms, or you struggle to get noticed there? 

If your plan depends on winning over a few Instagram influencers, what if they don’t come through? It’s really easy to say what you hope will happen. But actually making it happen is another thing. Business success happens more easily when you apply a multi-channel marketing and sales approach. 

Your financial projections will feel based in reality, when you can demonstrate some prior successes, either in other businesses you’ve already launched, test audiences, local sales you made, prior experience, or data from other businesses. 

Explain your funding request — if applicable

If you intend to ask investors to help fund your business idea, present your request in the final main section of your business plan. If you’ve already secured funding from other sources, include that here as well. An investor will feel better knowing they are not the only one who believes in the potential of your business. 

Will your funding request be for a one-time payment, monthly, annually, or at some other interval? How do you plan to repay their investment? Will you allow them to charge interest? How much ROI can you promise them? 

How WooCommerce can help

WooCommerce can help you build a scalable online business that supports your business plan. No matter what you’re selling, WooCommerce offers a suite of flexible tools that allows you to customize your store to meet your needs and goals. 

Here are just some of the benefits your business will enjoy when you choose to build your store with WooCommerce:

• Sell absolutely anything you can imagine . From physical items and digital downloads to subscriptions, memberships, bookings, courses, and affiliate products, WooCommerce provides everything you need. Want to run a wholesale store? You can do that, too!
• Harness the power of WordPress . Since WooCommerce is a plugin specifically for WordPress, you can take advantage of powerful features like the block editor and blogging capabilities. 
• Capture payments securely. Choose from a large number of payment gateways, from popular options like PayPal and Stripe, to more niche processors for specific locations and types of regulated products. And with tools like WooPayments , you can keep customers on-site, capture a variety of currencies, and even accept digital wallets like Apple Pay and Google Pay.
• Customize your shipping options. Offer free shipping, charge based on weight, set fixed prices, or calculate shipping costs based on real-time carrier rates. You can even use extensions like Table Rate Shipping to create complicated shipping rules based on conditions that you set. And with WooCommerce Shipping , you benefit from discounted shipping labels and the ability to print right from your dashboard. 
• Connect to your social media channels. Use extensions to sync your store with social media platforms like Facebook, Instagram, and Pinterest. You can even sell on those platforms alongside your store without having to update inventory and information manually.
• Integrate with marketing tools. Quickly connect your store to any number of marketing tools, from email platforms like MailPoet to CRMs like Jetpack CRM . You can also implement a number of marketing strategies, from abandoned cart emails to loyalty programs.
• Keep track of your numbers. Ecommerce accounting is a big part of running an online business. While you can easily view data in your dashboard, you can also sync with tools like QuickBooks to make your accountant’s life a little bit easier.
• Manage inventory. Update your inventory levels manually or connect to tools like Scanventory to sync with your warehouse. Running low or out of stock? Add a wishlist option so customers get an alert as soon as it’s available.

As you can see, WooCommerce is well-equipped to handle any type of online store and support you as you grow. Here are a few more reasons that WooCommerce should be your go-to choice for implementing the ecommerce side of your online business plan:

WooCommerce itself is free! Many extensions for WooCommerce can also be found for free in the WordPress.org plugins library or on the Woo Marketplace . If you need to start your website with a limited budget, but want to build on a platform that can grow to support a thriving, high-traffic store, WooCommerce is an excellent option.

You have full control over your store

Unlike other ecommerce solutions that are tied to the platform’s own web hosting, WooCommerce is designed to be used with WordPress along with any hosting provider of your choice. You are also free to use whatever payment processor you want without any additional fees from WooCommerce. You can also customize your site’s appearance and functionality more extensively than you can with other ecommerce platforms and with less (or no) coding knowledge.

Thousands of free and premium extensions

There are over 800 free and premium extensions for WooCommerce on WooCommerce.com alone and over 1,000 in the WordPress.org plugins library . There are also hundreds of independent developers and agencies that offer premium and custom extensions for WooCommerce so that you can customize your store with the exact features you need. 

Excellent support and large community of users

WooCommerce is used by over 3.9 million stores — 23% of all online stores worldwide . The support team is available to answer questions and the documentation library is extensive and thorough. There are also plenty of independent resources for learning how to use WordPress and WooCommerce.

Dedicate time and resources to put your online business plan in action

A successful business plan is one that empowers and guides the business owner to launch their online or ecommerce business, and possibly secure funding. But it only works if you use it.

One advantage of starting an ecommerce store or online business is that you aren’t as locked down by deadlines. With a physical location, once you start paying the rent, you better have your business plan ready to put into action. 

But the beauty of being online is that you have more flexibility on the front end. Despite having more wiggle room with your timelines, you still need to keep your momentum going forward. Staying on track with your business projects and goals is one of the keys to reaching profitability sooner and turning your business plan into reality. A few quick tips:

• Schedule your time. Block out hours and specific days to work on your business.
• Treat it like a job, not a hobby. Build on your momentum week after week.
• Always keep learning. Research your industry, competition, target audience, and potential customers. Learn marketing — you can never know too much.
• Try stuff! Take risks, make calls, create campaigns, write content.

Your business plan template should give you a concrete list of tasks and business objectives. Once you write a business plan, then you can implement it.

Frequently asked questions about writing an online business plan

What are the seven steps of a business plan.

The seven key elements of a business plan are the executive summary, company description, market analysis, organization and management, services and products, marketing plan, and financial projections. If you’re making a funding request, that would be an eighth section.

Where can I find business plan templates?

You can find a free business plan template online, for general business plans as well as for specific industries. However, since each business is different and your plan must be authentic and specific to your company — a business plan template can only get you so far. 

If you need design inspiration for your own custom business plan template or want to start with a pre-designed template that you can customize, you can purchase one for a relatively low cost through a stock resources site like Envato Market or Creative Market .

Do I need a business plan if I am already running an online business or ecommerce shop?

Business plans aren’t only for people who are launching new businesses. You can create a business plan at any time to help you maintain or change the direction of your store or just to get a better picture of the health of your business. Below are a few different types of business plans that you might want to consider for your established online business:

• Operational business plan. Outlines the structure of your business operations, staffing, and logistics.
• Feasibility plan. Feasibility plans are like mini business plans that cover new business ideas and outline steps for implementation.
• Growth business plan. This plan is for businesses that want to demonstrate opportunities and plans for growth to attract investors.
• Maturing business plan. This plan is for businesses looking to merge with or acquire other companies, significantly expand, or go public.
• Strategic business plan. Any time your business wants to shift strategies regarding products or marketing or any other major changes to your previous business plan, you’ll want to create a new strategic business plan to address your new goals and the steps involved in achieving them.

What software should I use for my online business plan?

Your business plan should include some images, graphs, and graphic elements in the layout, so you’ll want to at least use word processing software to put your business plan together. If you have access to Google Workspace, Microsoft 365, Canva, or Adobe Creative Cloud, you’ll have some other options that might lead to a more professional layout.

Here’s a list of free and paid software that can help you put together your online business plan outline:

What do investors want to see in a business plan?

The most important piece of information to show investors in your business plan is potential for profitability. Investors don’t want to throw money at a sinking ship, no matter how cool and exciting the business sounds. 

Most investors also want to make sure that they’ll see a decent return on their investment in a relatively short time period — probably around 5-7 years. How much of a return they’ll expect will depend on your industry and what kind of investor they are. 

Investors will also want to see that you clearly understand your business, your industry, and that you have concrete, actionable steps for achieving, maintaining, and growing profitability. They’ll want to make sure that the key people on your team also understand your business and the roles they play and they’ll want to see that each person has a good amount of experience in their field and the required skill sets to fulfill their job duties, if not go above and beyond. 

Any details you can include that highlight unique aspects of your business will also be important. Any area where you have a competitive edge, are offering a unique or proprietary solution, have established any celebrity endorsements, have the backing of other investors, or have secured special grants will be of special interest to investors.

Create your plan for success

Now that you understand what goes into creating a formal business plan, it’s time to write one! Take the time to think through and consider each aspect of the list included in this article, and you’ll be well on your way to finding success.

And WooCommerce is here to support your business every step of the way, with powerful and flexible tools that help your business grow. Start selling online today !

Share this:

• 30-day money-back guarantee
• Support teams across the world
• Safe and secure online payments

These 112 House Republicans voted against Ukraine aid

• The House passed a more than $60 billion bill that provides more military aid to Ukraine.
• It's part of a larger foreign aid package that's likely to pass the Senate and be signed into law.
• 112 Republicans voted it against — the most ever, and a majority of the GOP conference.

The House of Representatives on Saturday passed a more than $60 billion bill to provide military and economic aid to Ukraine.

A solid majority of Republicans voted against the bill, which passed by a 311-112 margin. 101 Republicans voted for it, and one Republican, Rep. Dan Meuser of Pennsylvania, voted "present."

The Ukraine aid bill came to the floor after months of delay and despite staunch opposition from the hard right, including a threat from Rep. Marjorie Taylor Greene to call a vote to oust House Speaker Mike Johnson if he allowed such a vote.

Related stories

Under Johnson's unconventional plan , the Ukraine bill will be sent to the Senate as part of a package that includes aid for Israel and Taiwan and a third bill that forces a sale of TikTok and allows the United States to confiscate Russian assets . Each component received its own vote in the House on Saturday.

The bill is widely expected to pass the Senate in the coming days, as it generally mirrors a $95.3 billion national security bill passed by the upper chamber in February. President Joe Biden has pledged to sign it into law.

Saturday's vote marked the first time the House had approved billions of dollars in Ukraine aid since December 2022, when Democrats still controlled the chamber.

In the two years since Russia's invasion, opposition to aiding Ukraine has grown from a fringe position to a majority view among House GOP lawmakers. Many argue the money should be spent domestically or that policy changes at the US-Mexico border should take precedence.

The new infusion of aid comes at a make-or-break moment for Ukraine , which has faced ammo shortages and insufficient air defenses.

As a result of his move, Johnson could face a vote on his ouster in the coming weeks. The GOP speaker, however, has grown more willing to confront the threat from the right, and Democrats have suggested that they're willing to protect him from an ouster effort if he allowed a vote on Ukraine aid.

"If I operated out of fear of a motion to vacate, I would never be able to do my job," Johnson told reporters this week. "History judges us for what we do. This is a critical time right now."

Here are the 112 House Republicans who voted against the bill:

Watch: Highlights from Biden's fiery State of the Union address

• Main content

• International edition
• Australia edition
• Europe edition

Thames Water nationalisation plan could move bulk of £15bn debt to state

Exclusive: Under Whitehall blueprint for water company some lenders could lose up to 40% of their money

Thames Water could be renationalised, with the bulk of its £15.6bn debt added to the public purse, under radical plans being considered by the government, the Guardian can reveal.

The blueprint, codenamed Project Timber, is being drawn up in Whitehall and would turn Britain’s biggest water company into a publicly owned arm’s-length body. Some lenders to its core operating company could lose up to 40% of their money under the plans.

The contingency planning, which is at an advanced stage, reflects the deep concern in Whitehall about the state of a company that has become a symbol of the failure of privatisation in public utilities. It had no debt when it was taken out of public ownership in 1989.

One of the UK’s biggest nationalisations in more than a decade would pull Thames’ vast liabilities into the government’s debt figures. A new arm’s-length public corporation would be formed to hold the water monopoly, modelled on the company that built the £18.8bn Crossrail project.

The company serves 16 million customers in the London and Thames valley regions, but its finances have been left threadbare after previous shareholders siphoned out billions of pounds of dividends and it was hit with hefty fines for pollution and leaks. Its parent company, Kemble, recently defaulted on its debt and Thames has said it has enough money in its operating company to last for 15 months.

Renationalisation would be deeply damaging for the government during an election year, reversing the privatisation carried out by Margaret Thatcher’s administration.

Still, with Thames’ crisis likely to run beyond the expected autumn election, it may be a new Labour government that is faced with the challenge of salvaging the water monopoly.

The blueprint is being led by the Department for Environment, Food and Rural Affairs (Defra) and the Treasury. The plans for a special administration of Thames are based on the assumption that Kemble is wiped out and its lenders, who are owed about £3bn, are not recompensed from the public purse.

Some bondholders for the operating company – which sits within a regulatory ringfence – may also see the value of their loans cut by as much as 35%-40%, according to figures that underpin the potential nationalisation and have been seen by the Guardian.

In April, the Guardian revealed Thames’ plans to further tap bond markets, even amid acute concerns among existing bondholders about the write downs they may be forced to make on their existing loans to the company’s operating arm.

However, the lenders likely to bear the most pain under renationalisation would be the smaller share of creditors to Thames, known as category B bondholders, who hold about £1.6bn of Thames’ operating company debt. The vast majority of category A bondholders, who are owed about £13bn, would face a smaller “haircut” of about 5%-10% under a central scenario, although this could rise to 25% in a more extreme scenario.

These figures are slightly more severe than some industry estimates from bondholders seen by the Guardian; in these B bondholders would lose about 30% of their money in a worst-case scenario and category A lenders would be forced to take 5% haircuts.

Shareholders in Thames , which include the funds giants USS and Omers, would have their entire investment in Thames wiped out under the renationalisation plans.

However, forcing lenders to bear financial pain would be highly controversial, given Thames’ creditors include some of the world’s biggest asset managers, which lent to the company on the assumption that their investment carried the same gold-plated risk rating as government debt.

Whitehall and the regulator, Ofwat, were still optimistic that a nationalisation may be avoided, sources said.

While public corporations are known as arm’s-length bodies, the move would ultimately allow the government far greater control and scrutiny of Thames’ day-to-day operations , sources said, speeding up its reform and return to the private sector. The company could be broken up into a “London Water” company to serve the capital and a “Thames Valley” firm to look after the rest.

Still, the level of control assumed by the government will be a key factor in determining how the Office for National Statistics (ONS) judges it should be accounted for within the national debt. Thames has about £19bn of assets, ranging from 20,000 miles of water pipes to reservoirs and sewage treatment works, as well as its £15.6bn debt pile.

Whether or not liabilities land on the government’s balance sheet often depends on the level of control it exerts over it.

In 2014 the £30bn debt at the track and station owner, Network Rail, was added to the public purse after it was reclassified as a public body by the ONS. However, in 2017 housing associations’ £66bn debt was reclassified as private after the then communities secretary, Sajid Javid, relinquished “just enough” control.

Sources at Ofwat are confident Thames’ operating company will be an attractive prospect for private sector investors once its parent company is wiped out, and a new plan for its finances and governance is secured.

If the company can convince Ofwat with its new turnaround plan and business plan, due within days, it might yet be able to hike consumers’ bills by nearly 40%. Ofwat is due to rule on that business plan at its 23 May board meeting.

It is understood Thames could also face some leniency on fines for its failure to meet performance targets if it is renationalised, given the problems of fining a state-owned body. Ofwat has the ability to censure Thames in three ways: via fines which put the money straight into the public purse, by rebates to consumers, or by securing undertakings.

With much of its assets buried underground, Thames and the regulator have struggled to get to grips with the true state of its ageing infrastructure. Thames has increased its claims in recent years about the poor condition of its underlying assets as its financial struggles have become plain.

Ofwat, meanwhile, has sought to gather its own intelligence on the state of Thames’ assets, and believes the company’s challenges are similar to those of other water operators who are not making the same financial claims regarding their business plans.

A Defra spokesperson said: “As a responsible government, we prepare for a range of scenarios across our regulated industries – including water – as the public would expect.”

A spokesperson for Thames Water referred the Guardian to its 28 March statement and said the talks with Ofwat and other stakeholders were ongoing.

“Thames Water intends to pursue all options to secure the required equity investment from new or existing shareholders,” the statement said.

A spokesperson for Ofwat declined to comment.

• Thames Water
• Water industry
• Public services policy

More on this story

Thames Water’s extra £1.1bn will do little to steady the sinking ship

Thames Water could raise bills to £627 a year to help fix leaks

Thames Water-linked firm paid £14m in dividends despite concerns over group

‘No dividing line’: consultants advising private water companies also work for their regulator, Ofwat

‘Dirty secret’: insiders say UK water firms knowingly break sewage laws

Thames Water to add to debt mountain in bid for survival

Thames Water break-up is a promising idea

Thames Water has six weeks to agree survival plan with Ofwat

Australia’s Macquarie among lenders to Thames Water’s parent company

Thames Water parent tells creditors it has defaulted on debt

Most viewed.