How to Start a Business with No Money in 2022

Want to improve your finances by adding more income to the mix? Start a business. Here’s how to start a business with no money.

Maybe you have no money to use for a fledgling business. Do you think you need small business loans to kick things off? BS! Sure, there are some types of businesses where full ownership will be limited if you can’t come up with your own capital to fund things (e.g. a franchise).

However, plenty of businesses require no up-front funding to begin. Don’t think for a second that you have to possess a lot of cash to get a business up and running. In fact, some of the best businesses can be started with little or no money whatsoever.

To start a business with no money, you need to choose the right kind of business. A great strategy is to start building clientele while keeping your day job, then gradually shift more focus to the new business as it grows.

Don’t take my word for it: listen to any episode of the Part-Time Money podcast. Most of these businesses were started with little or no money.

Still not convinced? Before you consider taking out a loan to fund your new business venture, watch the video below. It features Mark Cuban, a self-made billionaire and business owner, who talks about funding a startup.

How to Start a Business With No Money

So how exactly do you start a business with no money? Don’t let the lack of funds be the reason you don’t move forward with your entrepreneurial dreams. Once you have a clear vision and confidence in your idea, you can work on finding the money to get started.

There are also many business ideas that require little to no startup capital. However, you’ll probably still need to cover some expenses. Below are some ways you can start building cash flow in order to get your business off the ground.

1. Keep Your Day Job

While having a big idea and going for it may be great, being practical is what pays the bills. Don’t quit your day job with stars in your eyes and throw yourself into growing an untested business. Believe it or not, keeping your day job will make it more likely you’ll succeed.

Here’s why: if you maintain a steady source of income while starting and building your business, you’ll be more likely to take risks. While it may be hard to balance both your full-time job and your business for a while, doing this will help you scale your business faster and give you the security to try new things.

You can also use your income to invest and grow your business at a faster pace. Once you get your business off the ground, transitioning from an employee to a business owner will be a lot easier. Take the time to build a solid foundation so you can set yourself up for long-term success.

Related: 5 Things to Do Before Starting a Business

2. Use Services to Generate Cash Flow

If you’re looking to start a service-based business, you don’t need a lot of cash flow to get it off the ground. Just set it up and start marketing your services. Product-based businesses, on the other hand, require up-front capital to get started.

Even if you don’t have the funds to start your product-based business today, don’t despair. Consider providing services to generate cash flow and fund the product aspect of things. This can be something related to your product idea such as consulting or an entirely different line of business.

The extra cash flow can help you save up faster to build your product prototype and start testing. Just make sure you draft a timeline and create a budget to help move your product business idea along.

Related: How to Make Six Figures a Year as a Freelancer

3. Put in Sweat Equity

No one is going to be as invested in your business as you are. You have to have the drive and hustle to work around the clock and make your dreams a reality. Chances are, you’re going to have to get in the trenches and make things happen.

Do whatever it takes to build a solid base for your new venture. Get on the phone, knock on doors, make connections, go to tradeshows – whatever will move the needle in the right direction.

Getting in the trenches also means making mistakes. This is actually a crucial aspect of building a new business. Mistakes are how you’re going to learn what works for you and your business–and what doesn’t.

All the time spent laying the groundwork will also make it easier for you to onboard new hires in the future. Since you have first-hand experience of what it takes to succeed in your business, you’ll be able to show your employees how to be successful.

4. Build a Prototype

Before anyone is willing to invest in a product-based business, they want to see an example of the product. This is where building your first prototype can be very helpful.

Having a prototype also lets you test and troubleshoot potential problems before trying to go to market with your idea. Even large, multi-billion dollar companies build prototypes and test, test, test.

Having a poorly-made and badly thought out product is a surefire way to lose your customers’ trust. Do the best you can to build a test product and perfect it until you have the best version possible before you go to market.

5. Consider a Business Startup Fund

If you have a business idea but you’re not quite ready to get started, try building a business startup fund. To get started, open a separate account and label it with the name of your business idea. This will remind you why you’re saving every time you transfer money.

You can set aside some funds every paycheck, use part of your tax refund, your year-end bonus, and so on to add money to the account. Set a target amount and keep adding to it every way that you can. Consider getting a side hustle to quickly grow your savings.

Related: Small Business Finances: The Key Financial Pillars of Building a Start-Up

Don’t Pay for Banking

To start your business savings efforts, take the step to open a free business checking and/or savings account. This will ensure you keep your new business endeavors separate from your personal finances.

A good business account will have all the services you’ll need – things like a debit card, bill pay, connection to accounting software, and the ability to take payments. Nowadays you can usually find these services for free.

Click to see our complete list of free business checking accounts.

6. Research Small Business Grants and Local Funding

As a small business, you may qualify for a grant to help you get up and running. The Small Business Administration works with different organizations to provide federal financial assistance if you meet certain criteria.

In order to qualify, you’ll have to fill out and submit an application. Even if you don’t qualify for the grant, you may be matched up with funding programs that can help you finance your startup. In addition, check with your Chamber of Commerce about any local programs that help small businesses.

Related: Everything You Need to Know About SBA Loans

7. Consider Crowdfunding

If you think your business could appeal to many investors, consider going the crowdfunding route. Platforms such as Kickstarter have changed the way money is raised to fund new business ventures.

There’s definitely a strategy behind running a Kickstarter campaign. Do your research and talk to other business owners about their experience of running a successful crowdfunding campaign, so you don’t waste your time.

Provided you have a vision that will resonate with a large group of people, this could be a good way to secure funding.

8. Apply for a Small Business Loan

While a small business loan should not be your first choice to finance a startup, it could certainly be an option. There are a number of loan programs designed to help first-time entrepreneurs get their business off the ground.

To explore your options for a loan, start with the Small Business Administration, which operates the loan programs offered by the U.S. government. You’ll have to meet all criteria before your loan application is considered for funding. Here’s everything you need to know about SBA loans.

Related: Should You Take on Personal Debt to Fund Your Business?

Business Ideas that Require No Money

Many service industry businesses can be started with nothing.

  • For instance, you could start a dog-walking business. All you need is time, your two feet, and a way to get the word out.
  • Start a lawn-mowing or house-cleaning business. Tell your clients you have to use their tools and products. (Some clients may actually appreciate this, if they have preferences on cleaning supplies, for example.)
  • Start a moving company. Tell your first client that you need them to rent a moving truck.
  • Start a food service business. Tell your first client they need to provide the funds for the first trip to the grocery store.

Sure, you’re not going to attract every customer with this approach. But you don’t want every customer. You want JUST ONE…for now.

Read more: 20 Unique Business Ideas (That You Can Start Today!)

I have to plug online businesses here as well, since that’s what I have. There are some minor costs involved in starting an online business: domain and hosting.

But most online business software is open source (i.e. free) these days, so as long as you have a computer and Internet connection, you can start to build your online business.

  • Some ideas include blogging, social media marketing, SEO services, and so on.
  • I will plug freelancing as well. Freelancers don’t even need a domain or hosting. Just hustle. Open up a PayPal account, start hitting up the freelance job boards and get to work building your freelance business.

Don’t limit yourself to just your own time and skill, though. Make plans to own a freelancing business where you use your connections to start hiring freelancers of your own. That’s how you grow your business and your income!

Related: 6 Online Resources Every Freelancer Should Use

Next Steps: Invest in the Business Once You Have Cash

Obviously, a lawn-mowing business would fare better in the long run if you had your own equipment. Use some of the money you initially earned from those first jobs to buy equipment. The same goes for any business. Borrow until you can buy. Then buy more when you need to expand.

Some small businesses will do better when you have additional training or expertise. Do some research into whether you need to take some online courses to gain expertise for the business. This investment may be painful at first, but often yields big returns because you become more marketable.

The key is to be patient and realistic with this process. Don’t spend more than you can reasonably expect to earn back through the business.

As PT Money grew, I started spending money on marketing, improved hosting, and freelancers to make this a better business. Truthfully, I probably waited too long to start reinvesting in this business.

Related: Make Sure It’s Legal: A Cautionary Tale on Starting Your Own Small Business

Don’t be like me. Take more chances early on and reinvest in your business. Especially if you’re still hanging on to that full-time job, but hope to transition out of it in a year or two.

Additionally, there are legal considerations for running a business. Some businesses need insurance, legal services, etc. As soon as you can afford it, get insurance to protect you and your customers.

Related: Do You Need Insurance For Your Internet Business?

Bonus: How to Market Your Business with No Money

Forget business cards, classified ads, and the telephone book now. Who still reads that stuff anyway? Market your business for free online.

Use, set up a Facebook page, email all of your friends and family to help get the word out.  Or consider using Thumbtack. You can post your business online for free and just pay when a customer reaches out. All you need is one initial client to get the ball rolling. Do a kick-ace job with that first client and they’ll send you more business.

Get 1 Customer -> Do a Great Job -> Ask them to Refer You -> Do a Great Job Again -> Repeat

There are people in this world who would love to help you get started with your business. People love the upstart entrepreneur. Just put yourself out there, tell people what you need to get started, and then overwhelm them with your service and skill.

Once you have some cash rolling in, use it to legitimize your business and grow your business into something that can sustain you.

The Bottom Line

While starting a business may seem intimidating and costly at first, there are a number of options that require no capital to get going. Don’t let a lack of cash stop you from making your business idea into reality.

If you still need some funding to get the ball rolling, consider some of the ideas above for accumulating enough savings. There are many different ways you can start a business with no money and hit the ground running without having to take out a loan.

Just don’t quit your day job just yet. Establish a strong foundation and build a solid customer base before considering going full-time with your startup. Once your business is humming along, reinvest some of the profits into scaling it to the next level.

Related: Understanding Your Small Business Insurance Needs

Did you start your small business with little or no money down? How did you do it?

Avatar About Philip Taylor, CPA

Philip Taylor, aka "PT", is a CPA, blogger, podcaster, husband, and father of three. PT is also the founder and CEO of the personal finance industry conference and trade show, FinCon.

He created Part-Time Money® back in 2007 to share his advice on money, hold himself accountable (while paying off over $75k in debt), and to meet others passionate about moving toward financial independence.


    Speak Your Mind


  1. Avatar Danielle Ogilvie says

    Very helpful article especially to people like me who wanted to start being their own boss 🙂

  2. I don’t know if many other’s have the same situation as me. I have a great idea for a unique business that I know will make money, a real good business plan and many people supporting and wanting this place open. my problem is my past relationship caused my credit to go bad. I have been improving it for the last 4 years now he is gone, but banks do not see a personal side they see a number side. I am a hard working mother of five children so I live pay check to pay check. If I don’t have thousands of dollars investors turn their back. I am determined to make this work, but finding the money resources have been impossible. Any suggestions for my situation?
    One determined mother to make a better life for her children.