If you’re asking, “How do I start a business without money?” you’re at the right place. Whether you’re a teenager looking to kickstart your entrepreneurial journey, or a 9 to 5 worker seeking to start a side hustle, earn extra income, and eventually establish a business that gives you the lifestyle you want, this is for you.
In this article, I will show you how to start a business with no money.
Key Insights
- It is possible to start a business with less than £100. And with the internet, it’s easier now more than ever.
- A solid business plan is crucial, as it helps outline a roadmap for growth and profitability. Additionally, the post provides several funding options, from grants and crowdfunding to loans and borrowing from family, to help businesses get started without upfront capital.
- The hardest part of starting a business is getting your first paying customers.
- The early stages of building a business will be challenging, especially with little money. However, adopting a mindset of continuous learning, networking with entrepreneurs, and finding a mentor can help overcome obstacles and improve chances of long-term success.
Why Start a Business?
Although it may seem impossible, establishing a business from the ground up with little to no money isn’t beyond reach. John Paul Dejoria and Paul Mitchell started Paul Mitchell, a hair care product maker, with $700 in the 80s. Today, Paul Mitchell is one of the foremost brands in the world, and John Paul Dejoria is valued at $3 billion. Drawing from businesses like Paul Mitchell, you too can own a business and enjoy benefits such as;
1. Freedom and Control
Having a business gives you the freedom to decide when you work, how you work, and who you work with. You get to decide the direction you want to take the business.
2. Passive Income
As you scale your business, you can create systems to ensure you earn without taking an active part in the day-to-day activities of the business. With enough revenue, you can hire people to do the tedious, routine work, while you focus on decision-making and managing your business effectively.
3. Contribution to Society
Owning a business is a way of impacting society positively. You help people solve their problems and get paid in return. Also, you create job opportunities for others.
7 Steps to Starting a Business With Little to No Money
Now that you’ve settled on starting a business with whatever resources are available, where do you begin?
1. Find a business idea that works
Not all types of businesses can be established without money. Some businesses require you to have lots of cash from the get-go, while some can be started with a few pounds. For example, brick-and-mortar businesses such as restaurants are capital-intensive. To start, you need to rent a space, buy a handful of equipment, and hire a few workers at the very least. Further, you’ll need cash daily to get supplies and cook meals. Such a business needs at least £1,000 to £40,000.
But there are service-based businesses you can start, leveraging your skills and expertise. For example, freelance writing. With a PC and internet connection, you can set up an account on freelance platforms, or reach out to people you know to do their writing for them and get paid in return.
Here are 7 other business ideas that require little to no money to start. You can run most of them from the comfort of your home.
- Selling digital products: This is one of the easiest businesses to start with no money. You don’t need money to make or stock digital products like ebooks, online courses, setup guides, and templates. All that’s required is your skill in creating them. If you don’t have your own products, you can sell other people’s digital products and get a cut, often as high as 50 percent.
- Coaching/Mentoring: If you’re skilled in a particular area, you can mentor others. For example, if you’re into fitness and can help others establish a gym routine, proper diet, and body build-up, becoming a fitness coach is a business idea that could work for you. Be sure you have the expertise and the ability to produce results in the area you decide to coach people.
- Dropshipping: At the moment, dropshipping is one of the hottest types of businesses. There are countless cases of people who started with £0 and scaled to six figures and beyond, like Tom Sagi. In dropshipping, you sell products online, without ever owning the product or stocking it up. What happens is that you partner with a seller to advertise their products. People buy from you, and then you pay the seller after taking your cut and shipping the product to the buyer. Because you get paid before ordering the product, it takes the risk of stocking products off you, and you don’t need capital. All that’s required is a platform, such as social media, or a simple website to sell the products to an audience and receive payments.
- Social Media: Speaking of social media, there are different ways to go about it. You can build an audience, and then partner with brands to advertise their products/services. Or you can sell directly to your audience. If you master the art of growing social media accounts to thousands of followers, you can start a social media management agency to help others build their following. All that’s required is a social media account, an internet connection, free content creation tools, and your creative ideas.
- Dog walking: Online businesses aren’t the only ones you can start without money. Offering simple services like dog walking is a way to get started.
- Virtual Assistance: There are busy entrepreneurs out there who have tasks and to-dos beyond what they can handle within their short 24-hour day. Helping them with some tasks remotely can earn you good money. You can help them check and respond to emails, manage their schedule, and keep their social media pages active.
- Cleaning: Starting a cleaning business requires little to no money. You only need a few cleaning equipment, which you may already have at home, or can get at a fair price at local or online stores.
2. Write a business plan
Although you’re starting your business with the resources you have now, it’s essential you do it right. A business plan shows your 2-year to 5-year vision, how exactly you plan to make profits, who your customers are, and where to find them. Your business plan also serves as a second filter that validates the profitability of your idea. And if you ever decide to source for funding, your business plan shows investors or other funders what they should expect
3. Register your business
Depending on your business type, you may need to obtain a license or permit from your local authorities. As a single business owner with minimal resources to start with, you’ll most likely register as a sole trader.
4. Secure funding
You can skip this step if you have the few bucks needed to hit the ground running with your new business idea. But if you’re in dire need of a few hundred to a couple thousand pounds, you can get funds through the following means.
Grants: Grant is money given to businesses to help them start or grow. The difference between a grant and a loan is that you don’t have to pay back a grant. You can find grants offered by the UK government. There are other organisations out there that give grants to businesses. A simple search on Google can help you find the one suited for your business. For example, if you decide to start a cleaning business, searching for “grants for cleaning business uk” can point you toward one.
- Crowdfunding: Platforms like Kickstarter can help you raise money from the general public if you have an idea that is interesting enough.
- Find Investors or Venture Capitalists: You may find people who will invest in your business. The catch here is that you’ll give them a percentage of profits, and they could influence how you run your business.
- Borrow From Friends or Family: If you’ve got friends or family who can lend you money, pitching your idea to them can convince them to give you what is needed to start.
- Take a loan: Although this isn’t an advisable way to start your first business if you have no experience, some people have found success with it. Loans come with the risk of paying huge debts if your business fails. But the pressure to succeed could act as a motivator. Still, we’ll advise you to take out a loan with caution and keep it as minimal as possible. Stay within the limits of what you can comfortably pay if things go haywire. Startup Loans is an official website backed by the UK government that provides loans.
5. Start operations
With a business plan and the funds to make it work, you can now proceed to run your business. If you need a few pieces of equipment, such as for cleaning, you can find them online on platforms like eBay at fair prices. If you’re running an online business like freelance writing, social media management, or virtual assistance, go ahead and set up your profiles on relevant online platforms e.g. Upwork, LinkedIn, etc.
6. Get customers
The hardest, and the most important aspect of running a successful business is getting customers or clients willing to pay for your services or buy your products. In the early stages, you may need to send direct messages to strangers who fit your ideal customer profile and convince them you can meet their needs. Focus on getting your first customer. After that, you can use the results as proof of your expertise, or the value of what you sell to attract more customers.
7. Offer great service and improve continuously
Getting customers is not enough. Offering great service opens the door to referrals. It also helps you retain the customers you already have. Keep improving continuously, and as you make your first few profits you can put it back into your business, spend on advertising, and even hire other people to help you meet the growing demand.
Some Considerations for Starting a Business Without Money
- Your job is important: If you have a day job, it’s advisable to not quit just yet, until your business pays you more and can sustain itself.
- Early struggles: While you may dream of eventually living a free life, not having to work extra hard, the early business years are going to be daunting. Especially with little funding. But you must embrace it if you want to succeed. There will be ups and downs, lots of rejections, and customer complaints. But with a positive outlook, an attitude of learning, and motivation from the end goal, you can push through.
- Tax payment and regulatory compliance: You’ll need to pay taxes when you start making above £1,000. The HMRC is the UK body in charge of taxes. Also, ensure you comply with laws guiding businesses where you operate to avoid fines and legal issues.
Tips for Success with Your Minimal Startup Business
1. Networking
It is popularly said that your network is your net worth. Connecting with other entrepreneurs both online, and in your locality can open you up to new opportunities, partnerships, and business deals. Also try to make friends within your industry, attend conferences and events (virtual and in person), etc. You never know where your next customer or recommendation could come from.
2. Mentorship
Getting a business mentor can help you avoid some mistakes early entrepreneurs make. While you may not yet be able to afford one-on-one mentorship, make good use of your online connections and willing entrepreneurs in your local community.
3. Learn continuously
During the early days of your business, you’re going to be a jack of all trades. You’ll be the marketer, the sales guy, the customer support person, the service provider, the manager, the accountant, and the CEO of your business. Without knowledge in many areas, you won’t function effectively and your business may not stand the test of time. You need to have a learner’s mindset. There are free resources like YouTube videos and online courses to start with.
Read Also
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Top 15 Small-Scale Businesses to Consider as a Newbie Entrepreneur
How to Build a Successful E-commerce Website for Your Products: Essential Tips and Tools
Conclusion
From the outside looking in, it may seem impossible to start a business without thousands of pounds. But in reality, some businesses started with less than a hundred pounds, and have managed to not just survive but thrive as very profitable ventures yielding six figures in revenue.
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