Starting a business with limited or no capital is no doubt challenging. But, it is a fact with creativity, determination, and resourcefulness, it is possible to turn your entrepreneurial dreams into reality. Here is a step-by-step guide on how to start a business with no money, along with some frequently asked questions (FAQs).
One of the most important requirements for your business with no money and experience is that you have to work hard. This diligence will get you the desired success and profit from the business.
13 Steps to Start a Business with No Money
1. Understand your Strength
The first step in starting your business with no money and experience is that you have to understand your strength/s. If you are a good student, you can think of a teaching or training business, if you are a good writer, you can think of a writing business, if you can draw or make crafts well, think accordingly. Apart from these, there are many points of strength one may have, like good communication skills, hardworking, culinary skills, designing skills or training, typing speed, knowledge of several languages, etc.
Understanding the strengths is very important for you because you will have to plan your business type based on these strengths. These will be the primary capital for your business which is much more valuable than money.
2. Do Market Research
Market research is necessary for all kinds of business. Hence, you need to do exhaustive market research before starting your business with no money or experience. Try to know the demand for the business you want to start. Consider local demands as well as online demands because you may start an online business where local demand is not very important. Hence, you have to do market research according to the nature of your business.
3. Select a Business Idea
You need to brainstorm business ideas based on your skills, interests, and market demands. Many online business ideas are there that need little or no money to start. Some of them are listed below:
- Online Writing
- Online Editing
- Online Teaching
- Social Media Marketing
- Do Survey Work
- Social Media Influencer
- Online translation
- Online Data Entry
- Virtual Assistant
- Online Therapy
- Transcription Services
4. Create a Business Plan
Now that you have chosen the business idea, make a business plan for your business with no money or experience. Write details of your business in the plan. Include points like
- Your Business Idea
- USP of the Idea
- Why the idea suits you
- How can you manage without money and experience?
- Operational Details
- Marketing Plan
- Income Projection
Explain each point with the necessary information and statistics. Also, explain the necessity of such businesses that can be operated without investment.
5. Take Help from Friends and Family Members
There will be times, when you may find yourself exhausted both financially and emotionally, especially when running a business with no money. In those trying times, do not hesitate to seek help from your friends and relatives. It can be small loans or some back-end operational jobs.
6. Use Free Tools
Since you are starting a business with almost no money, it is essential to use technology to your advantage. There are a number of free tools and cloud-based software that you can use and save a lot of money.
7. Ask for Funding
Other than asking for loans from friends and relatives, try your best to get funding from alternative funding options like crowdfunding, grants, or small business loans. However, do due diligence and understand the terms before taking any funding.
8. Crowdfunding and Grants
There are many crowdfunding platforms you can explore like Kickstarter or Indiegogo to raise funds for your business idea. Furthermore, research grants and competitions offer financial support to startups and small businesses.
9. Decide the Place
From where would you start your business with no money and experience? Your home is the best place. For online businesses, you can start working from home on your PC or laptop. In the case of service-based businesses, you have to visit work sites. Therefore you need not pay for an office space.
10. Try to Get Prior Order
This is a safety measure for your business without money or experience. Try to secure some orders before you start your business officially. For example, in the case of online jobs, get some orders of assignments like content writing, SEO writing, or social media marketing orders before starting your business. This will give you confidence and a moral boost.
If you are into service-based businesses, get some orders and then start your business. This will enable you to earn from the beginning of your business.
11. Barter or Trade Services
You can partner with other entrepreneurs to exchange services or products without involving money. In addition, collaborate with complementary businesses to expand your reach.
12. Have a Low-Cost Marketing Plan
Businesses with no money and experience need marketing strategies. You have to think and find out strategies that won’t cost you any money. These strategies include
a) Social Media
Use social media to the fullest for marketing your business. This is completely free of cost. Create pages in the name of your business or connect them to your profile, create reels, and videos, and go live and talk about your business. This will give you access to a wide variety of people, many of whom may be your prospective clients. Free ads in social media are also very effective marketing tools.
Local networking is very important for marketing and publicity of your business with no money or experience. This is especially true for service-based businesses. Spread the news of your business through your family, and friends, in social gatherings, WhatsApp groups, etc.
c) Affiliate Marketing
Get in touch with businesses and use their websites for your affiliate marketing. This will generate a substantial order and business for you.
d) Offer Free Samples
If you sell handcrafted items, apparel, etc, you can sell them through websites like Amazon, free of cost. This will save your expenses on shops, display, and transport.
e) Provide Free Service
For service-based businesses, offer free services for regular clients. For example, after 6 consecutive paid services, you can offer discounted or free service for the 7th one. This will create goodwill and spread your name through referrals.
f) Create a Free Website
Create a website for your business. This will help you in marketing as well as publicity of your business. There are many free website builders you can check to create your own free website.
g) E-Mail Marketing
Create a database of prospective clients and send them e-mails describing your service and other terms. This will give you orders.
h) Try to Make a Good Profile
If you are working online, create a good and attractive profile of yourself, that will explain your skills, efficiency, and promptness to finish assignments.
i) Get Positive Reviews
After you complete any work, try to get a good review from your customers in writing or as a video message. Upload the reviews on social media accounts as well as on your website. This will help you in building a good reputation for your business.
13. Work for Longer Hours
Income opportunities in your business without any money or experience are quite good. If you can work long hours and complete assignments every day, your income will be high. Since you have not invested money in it, the whole income will be your profit. The amount of income depends on the nature of your business. It may be $20/hr to $200/month and even more.
Starting a business with no money or experience is not very difficult as it seems. However, you will need determination, planning, and hard work to succeed.
Frequently Asked Questions
Is it possible to start a business with no money?
Yes, it is possible to start a business with little or no money by leveraging your skills, resources, and creativity.
How can I fund my business with no money?
You will need to consider bootstrapping, bartering services, crowdfunding, or applying for grants to fund your business.
What are some low-cost business ideas to start with no money?
Some low-cost business ideas include online tutoring, social media management, freelance writing, and handmade crafts.
How can I market my business with no budget?
Focus on free marketing channels like social media, content marketing, and word-of-mouth referrals to promote your business.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their businesses.