Are you Looking to start a business in 2024 but low on funds? Use these examples and tips to launch your next great idea on a budget.
When starting a business, finding an idea is half the battle. The other half is funding it.
If you have a great business but don’t have startup capital, it doesn’t mean your path to entrepreneurship is over. There are plenty of ways to start a business with little or no money.
Here’s how to start a business with no money.
8 steps to starting a business with no money
1. Choose a free business idea
2. Write a business plan
3. Embrace the entrepreneur community
4. Choose a business name
5. Create a brand
6. Launch a website
7. Validate the idea with a preorder
8. Source funding to grow
1) Choose a free business idea
The first stage of starting a new business is developing an idea. If you’re ready to become a business owner but don’t have any personal savings or other funding sources, here are six creative business ideas you can start with no money.
a) Try drop-shipping
Drop-shipping is a popular business model for entrepreneurs looking to start a small business with no money. This is a low-investment startup idea that doesn’t require you to hold inventory to sell products. Vendors will only charge you for inventory when you sell it and they’ll even ship it directly to your customers.
To find success with drop-shipping, start by sourcing trending products from a drop-shipping supplier, then market them to potential customers using organic marketing tactics, like search engine optimization (SEO).
One of the most popular online stores you should check for your inspiration.
Bloombaazarshop.com
b) Start a service-based business
The easiest way to start a business with no money is to sell your services. Even if you haven’t mastered a specific skill, start by identifying the things you know how to do better than most people.
Package your skills and resources into a service business, such as:
i. Freelance writing
ii. Virtual assistant services
iii. Social media marketing
iv. Handyman services
v. House cleaning
vi. Dog Walking
vii. Personal shopping
viii. Bookkeeping services
c) Start a print-on-demand business
If you don’t have cash to invest in inventory, try a print-on-demand business.
Print-on-demand services will apply your branding and designs to private label products, such as tote bags or t-shirts, and sell them on a per-order basis.
Much like drop-shipping, there are minimal costs associated with starting a print-on-demand business. There are no storage expenses to contend with, and you can test out the popularity of products before investing in other forms of manufacturing.
d) Sell handcrafted goods
Prefer a more hands-on approach to starting a small business? Turn your hobby into a side hustle by selling handcrafted goods through your online store and marketplaces like Etsy.
Things that can be made and sold can include:
i. Artwork
ii. Craft
iii. Jewellery
iv. Skin care
v. Woodworking projects
vi. Handmade clothing
e) Sell digital products
A person reads an e-book in front of a wood pile-you can create and sell digital products with little more than an internet connection, making them a solid way to start an online business with no money.
Start with a popular topic, develop some helpful content, and then package your ideas into a digital product, such as:
i. Ebooks
ii. Online courses
iii. Worksheets or templates
iv. Photography presets
The beauty of digital products is their scalability. Create a product once, then sell it multiple times on Shopify using the Digital Downloads app. It’s no wonder so many entrepreneurs use digital products as a way of making passive income.
f) Become a social media influencer
To become an influencer, start by building your social media presence on a popular platform, such as Instagram or TikTok. Once you’ve built an account with a few thousand followers, explore these opportunities to make money with no upfront investment:
Affiliate Marketing: Promote products from your favorite brands and earn a percentage commission when your followers buy them.
Sponsor content. Get paid to partner with brands who want access to your audience.
Selling merchandise. Add your brand name, logo, or catchphrase to merchandise and sell it in your social media store.
2. Write a business plan
A business plan is the blueprint for how you’ll grow your business. The contents of your plan will be unique to your business, but should generally include the following:
Company description. An overview of the company you’re about to start, including the business model and legal structure.
Business model. Decide if your business will be an LLC, C corp, S corp, B corp, or Sole proprietorship.
Market research. Include demographics that your target market shares. For example, will you sell directly to the consumer or via wholesalers? How does this compare to competitors?
Products and services offered. You’ll make money by selling one of these. Explain what the product or service is and why people will buy it.
Marketing strategy. Explain how you will promote your business to reach your target market, be that through social media, advertising, or email marketing.
Logistics and operations plan. How do you intend to get your product or service into the hands of your paying customers? This could be drop-shipping suppliers, third-party logistics companies, or mailing items yourself.
Financial plan. Detail how you intend to make and spend money. Include your financial needs, costs and expenses, balance sheet, and cash flow projections.
3. Embrace the entrepreneur community
Many entrepreneurs start their businesses with little more than pocket change. Finding a community of self-made business people can unlock valuable free advice on how to make your business work on a budget.
i. Find other entrepreneurs by:
ii. Attending networking events
iii. Signing up for virtual and in-person conferences
iv. Joining online networking groups
v. Finding a business mentor
4. Choose a business name
The next stage in starting a business is to choose a name. Your name should be catchy, recognizable, and most importantly, not already taken.
Remember: The name you choose will serve you through the business’s lifetime. Make sure it’s one you love — and a name that doesn’t limit your ability to scale and pivot in the future.
Once you’ve found a business name you like, secure matching online assets such as:
A domain name. For example, BRAND.com
Social media handles. For example, facebook.com/BRAND
5. Create a brand
Now that you have a business name, you’re one step closer to building a brand.
However, a brand is more than a name or logo. Branding encompasses the following:
i. Brand values and mission statement
ii. Brand aesthetic, including color palette and fonts
iii. Photography style
iv. Brand voice and tone
v. Hiring practices
vi. Brand story
As a business owner, your brand guidelines will help inform your business strategy as you grow. A strong brand guides your social media marketing efforts, your hiring practices, and your communication style. You can create a brand with no money, using free resources like Shopify’s logo maker.
6. Launch a website
While it’s possible to run your business entirely on social media, a basic website serves as a destination for online visitors, and a hub for your products and content.
You can build a full website with professional features, such as themed product pages, a checkout, and a blog, for as little as 29$ per month. Use it to educate potential customers about your products and brand.
If you want to sell online, but don’t need to build a full store, the Shopify stores plan costs just $5 per month. It comes with enhanced selling features for TikTok, Instagram, and other social media platforms — as well as the ability to make sales through email, SMS, and in person.
7. Validate ideas with pre-orders
If you don’t have the startup cash to fill a stockroom with inventory, you can run your business using a pre-order. Taking pre-orders allows you to collect upfront cash before signing off on production. It’s also a great launch strategy for building hype around a new brand.
8. Source funding to grow
You can reinvest the profits once you’ve validated your business idea and started making money. You may also decide to apply for small business loans, seek out angel investors, or run a crowdfunding campaign.
If your small business fails, the most likely reason will be cash flow issues. That’s why many entrepreneurs look for extra startup capital — money they can invest in inventory, marketing, or hiring their first employee.
Options to fund your new business venture include:
Shopify Captial. Shopify’s lending feature helps stores boost cash flow and keep bestsellers stocked.
Small business loans. Get larger amounts of money through a lender to go toward payroll, inventory funding, or marketing.
Capital investors. These come in the form of angel investors or venture capitalists. Both provide cash for small businesses in exchange for an equity stake.
Small business grants. These are one-off lump sums of money given to small businesses with specific criteria. Most small business grants don’t need to be paid back.
