How to Start a Small Business With No Money

Many people dream of starting a business, but most fail to realize this dream due to the belief that starting a business is an expensive venture. While some businesses do require start-up funding, there are thousands of other potential businesses that can be started on a shoestring budget. To start a small business with no money, an entrepreneur must be willing to be creative and patient and be open to doing things in an innovative manner. While some may feel it is too difficult, starting a business with no money can actually make for a stronger and more unique company and can sharpen the business skills of its owner.

Instructions

1. Be realistic about the type of business you should start. Some businesses, especially those that require extensive technology, research or skilled labor will be too difficult to start with no money. Instead, choose a field that requires little upfront investment. This would include most service businesses or any kind of handmade product. Some potential ideas that require no money upfront include childcare, handyman services, consulting or craft sales.

2. Consider what skills you currently posses that you could use to make money. For skills you already have, you won't need training or basic equipment. Also, because you have experience in the field, you are less likely to make costly mistakes early on. For example, if you love to bake, consider selling baked goods at fairs and events. Eventually, you can begin to sell your products to cafes and stores for resale. Because you may be able to do all the cooking at home, you won't need money to get started. Thousands of skills and hobbies can be transformed into businesses without a source of start-up funding.

3. Wait to hire employees. In the beginning of a business, the huge number of jobs that need to be completed can seem overwhelming. To start a business with no money, you'll need to do all these jobs yourself. To keep from feeling overwhelmed, realize this is the trade-off you made to allow you to achieve your dream.

4. Take advantage of free resources. The U.S. Small Business Administration is a free government agency designed to get small businesses off the ground. They offer a variety of free services, ranging from help with business plans to legal and accounting advice. Check the organization's website to find your local chapter. Your local Chamber of Commerce or Business Development Office may also offer free services or mentoring, so check with your local government to find out.

5. Rely on free marketing techniques. Word of mouth advertising costs nothing. Consider everyone you meet as a potential customer, but also as a free advertiser. By sharing your business with others, you are exposing your company to that person and their entire network. You can also use free websites such as Craigslist, Twitter and Facebook to spread the word about your company.

Tips & Warnings

• While you must be realistic when starting a business with no money, there's no need to give up on your dream. If you dream of owning a business that requires a large investment, start a smaller company first to help finance your dream.

• When you're ready to hire, use students as employees. Choose bright, motivated young people who want to enhance their resumes by working as interns for little or no pay.

• Avoid cash flow deficiencies by invoicing your customers on time. Set firm due dates for payment and stick to them. This eliminates the need to take loans to finance the business while waiting for payment.

References

• Huffington Post
• Start a Business With No Money

Resources

• Small Business Administration