“Starting a business with no money” sounds like a pipe dream, doesn’t it? You’ve probably even perceived it as a far-fetched, “just pull yourself up by your bootstraps” cliché that doesn’t actually work in the real world. But here’s the thing … despite any doubts you may have, it can be done.
I know it’s possible because I’ve been there, trying to figure out how to make a big idea happen without a big bank account, trying to work with both resources I already have (and ones I’ve found on a whim). However, despite the struggle that comes with the inevitable grind, the truth is this: entrepreneurship is less about how much cash you have and more about how resourceful you can be. It’s also about finding creative ways to solve problems, leaning on the tools and skills you already have, and maybe embracing a little DIY spirit along the way.
In this post, I’ll share all the secrets I learned about starting a business with a shoestring budget, from finding funding to where you should start if you’ve got no capital at all.
Table of Contents:- Entrepreneurship Statistics You Should Know About Before Starting a Business
- How to Find Grants and Funding For New Business Owners
- 6 Businesses You Can Start With Little to No Capital
- Heavy Pockets or Not, Start Your Business Anyway
Entrepreneurship Statistics You Should Know About Before Starting a Business
Before I jump into all the specific details about how to start a business without barely spending a dime, I won’t sugarcoat the obvious: being an entrepreneur is hard, especially today, especially when you’re new to the game of being your own boss/accountant/customer service rep/marketer. So, before I convince you to take the leap and formalize your commitment to starting a business, I’ll keep things transparent with the following statistics from :
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- 22% of entrepreneurs run businesses in the startup phase
- 28% of entrepreneurs manage their business by themselves
- 36% of entrepreneurs say their most common challenge is accessing capital or funding
- 74% of entrepreneurs use personal funds to fuel their business
- 37% of entrepreneurs recruit staff from social media platforms (the most well-utilized platform being LinkedIn)
- 54% of entrepreneurs say maintaining financial security is their biggest challenge in running their business
- 61% of entrepreneurs find customers through WOM referrals, and only 12% of entrepreneurs use traditional channels to market their business
As I said before, entrepreneurship is hard. Expect it to be challenging. Expect it to be humbling. But also expect it to be full of lessons that’ll help you become a more informed, more capable business owner. With the right tools, mindset, and some proper guidance, you can overcome the challenges of being an entrepreneur and, most importantly, set yourself up for success.
On that note, in the next section, I’ll talk through:
- How to find grants and funding as a new business owner
- Tips and suggestions for programs and opportunities to apply to
- Strategies to help you stand out and secure the financial support you need
How to Find Grants and Funding For New Business Owners
Once you’ve gotten through the difficult stages of dreaming up your business — identifying what sort of business you want to start, developing that’ll help you carve out all the preliminary stuff — you’ll advance to the next stage of getting your business off the ground: finding money from somewhere to finance your venture.
Before you let out a skeptical sigh, I already know what you’re thinking: that the alleged “secret” to finding grants and funding as a new business owner is gatekept like the Krabby Patty formula. However, let me be the first to tell you that securing investor support 颈蝉苍’迟 as mysterious as it seems.
While it is undoubtedly the most stressful stage of starting a business, there are grants and funding opportunities out there, and with a bit of extra time spent on research and/or networking, you can find the ones that align with your needs. Check my tips for discovering the right opportunities for grants and funding below:
1. Find industry-specific grants and funding.
While throwing spaghetti at the wall might work for other parts of formulating your business, a more targeted approach is key to securing funding. As you look for financing best suited for where you’re at in your business growth journey, I firmly suggest a) niching down and b) searching for a funding opportunity that resonates with and supports the following core aspects:
- Your “stage” of business. Whether you’re still in the “ideas on a napkin” stage or already turning a profit, some grants cater specifically to startups, while others focus on growth-stage businesses. Don’t apply to something geared for a million-dollar operation if you’re just trying to get the ball rolling.
- Your business goals. Is the funding you’re searching for meant to help you expand your product line? Build a team? Move into a brick-and-mortar location? Find a grant that aligns with what you’re trying to achieve next.
- Your business’s purpose. Many grants prioritize businesses with specific missions, like supporting sustainability, promoting diversity, or contributing to underserved communities.
- Your industry. Grants tailored to specific industries (i.e., tech, agriculture, retail, etc.) are your bread and butter. For instance, if you’re running a sustainable clothing business, you won’t waste time applying for a grant for AI startups.
2. Deep dive into your favorite brands and companies for incubator/accelerator programs or grant opportunities.
Depending on what market space you’re looking to break into, you may be surprised to discover how many of your favorite well-established brands and companies offer growth and funding resources for new business owners. Before you go scouring the internet for which ones actually exist and are potentially applicable to you, here are a few that I’ve been able to find:
- : Glossier for Good invests in underrepresented entrepreneurs and communities that seek to radicalize the beauty industry through products, initiatives, and programming. Glossier also has its a pillar of Glossier for Good that invests in Black beauty entrepreneurs.
- : Chobani Incubator supports food and beverage startups by providing funding, mentorship, and potential distribution opportunities. Chobani’s incubator program also aims to help budding brands scale their operations and bring innovative products to market.
- : FedEx’s Small Business Grant is an annual competition that awards grants to small businesses to help them grow and achieve their goals. Winners receive funding and access to FedEx resources like printing services, marketing assistance, and shipping credits to support their success further.
- : Sephora Accelerate is a six-month brand incubation program designed to support up-and-coming beauty founders. During the program, selected participants build skills around scaling and sustaining their businesses. Sephora Accelerate also commits to platforming and uplifting founders of color.
- : Google’s accelerator program focuses on supporting businesses with connections to the tech space, specifically ones already building a scalable product or service. Google’s program is also global and dedicated to assisting businesses in the Seed to Series A funding stages.
- : Johnson & Johnson’s JLABS is another global entrepreneurship program supporting life science incubators that provides startups with affordable lab spaces, resources, and expert advice.
- : UPS's Small Biz Challenge is a competition designed to support small business owners by offering them the chance to win a cash prize and receive expert mentorship. Participants showcase their entrepreneurial skills through challenges and pitch competitions; winners gain funding and mentorship to help grow their businesses.
3. Don’t be afraid to scour LinkedIn for insider advice.
This one requires a little extra research done on your end, but ultimately, you could get some great information from it. By finding folks who have previously applied to the funding programs and opportunities you’re eyeing, you’re opening yourself up to valuable advice.
This starts with searching the only platform where you can find every industry professional in one place: LinkedIn. Here are my top two tips for identifying and connecting with people for insight and honest perspectives about their experience as an entrepreneur:
- Research LinkedIn for posts about grants/program opportunities you want to apply to. Use LinkedIn’s search bar and search keywords related to the funding program or grant you’re considering. Check for posts from individuals who have shared their experiences applying to or receiving funding.
- Look for alumni or past recipients of a program. Many funding programs or grants highlight their past recipients on their website or social media channels. Search for these individuals on LinkedIn, and don’t be afraid to review their profiles or, even better, reach out for guidance.
4. Join a members-only group for entrepreneurs/small business owners.
When you look for community, you often find it. However, if you don’t have the time to find the right network right now, that’s totally understandable. Here are a few members-only groups for entrepreneurs and founders alike that I’ve been able to uncover via the Internet (for your eyes only):
- : Forbes BLK is a members-only community for Black professionals, entrepreneurs, and leaders. It provides networking opportunities, access to business insights, and exclusive events to support its members’ success and advancement.
- : NASE is a membership-based organization that supports small business owners and the self-employed. It provides benefits such as business grants, access to health insurance options, tax resources, and expert advice to help members effectively manage and grow their businesses.
- : SBIA is another membership-based organization that brings together small business investors, private equity firms, and entrepreneurs. It focuses on facilitating connections between businesses needing capital and potential investors while advocating for policies that support small business growth.
- : NFIB is a powerful voice for small business owners, offering advocacy at the state and federal levels to address issues affecting small businesses. Membership provides access to tools, resources, and a network of independent business owners who share common challenges and goals.
6 Businesses You Can Start With Little to No Capital
If you plan to start a business but have no idea where to start (and no money to start with), I have some bright ideas that may be worth mulling over. These suggestions could help you spark some creativity, refine a business concept you’ve been thinking about, or give you the nudge needed to take that first step.
Regardless of where you stand in your business’s overall development process, here are a few promising ideas to inspire you and get the ball rolling, from low-cost startups to creative ventures that tap into trending markets:
Free Business Plan Template
The essential document for starting a business -- custom built for your needs.
- Outline your idea.
- Pitch to investors.
- Secure funding.
- Get to work!
Download Free
All fields are required.
You're all set!
Click this link to access this resource at any time.
Businesses You Can Start With No Money
1. Start a business selling second-hand items.
If you have extra clothes or unused technology lying around, a money-making prospect awaits.
Where should you start? Download any secondhand selling app and turn your clutter into cash. Plus, here’s the best part: there are several platforms that you could use to do so. Here are a few of my favorites:
- : Great for everything from tech to collectibles. You’d be surprised what people are willing to bid on.
- : Perfect for selling trendy clothes and accessories. It’s especially popular among Gen Z buyers.
- : Ideal for local sales. It’s great for selling larger items like furniture, appliances, or transportation vehicles.
- : A user-friendly option for selling almost anything, from clothing to home goods.
- : Another Gen Z favorite reselling app. On Vinted, everyone and their mom is getting rid of clothes, books, accessories, you name it.
2. Start a business selling digital products.
Think templates, calendars, Lightroom presets. Digital products are awesome because they’re a low-cost, high-reward option to explore. If this business idea is something you choose to pursue, I’ve got good news: you’ve got a lot of options to choose from.
The beauty of this business is that once you create a digital product, you can sell it repeatedly with minimal ongoing effort. Here’s a small list of places to get started with selling your digital creation:
- : You likely know her. I personally love her. What you probably didn’t know? Etsy 颈蝉苍’迟 just for handmade goods. It’s also a digital product hub. Whether you sell printable planners, art prints, or logo templates, Etsy’s built-in audience of creative shoppers makes it a great place to showcase your work.
- : Gumroad is perfect for selling various digital products, from eBooks to video tutorials to design assets. It also allows you to offer subscriptions or pay-what-you-want pricing, giving you flexibility in pricing your products.
- : This platform is ideal for creators who want to sell smaller, one-off digital items like guides, templates, or stock photos while building a community around their work. It’s straightforward and allows you to connect directly with your consumers.
- : If you plan to scale your business or create a more branded experience, Shopify is the way to go. It’s a robust platform that allows you to customize your online store, making it great for showcasing a wide range of digital products. Shopify’s tools make it easy to manage sales, track analytics, and even integrate email marketing.
3. Start a business managing social media platforms.
If you’re pretty darn good at creating content, understanding algorithms, and engaging all types of audiences, it might be time for you to transform your talent into a paid career, all by helping other businesses and creators grow their online presence.
Don’t believe me? Take a look at this freelance social media and community manager, Jasmine King, who has done this work so well that she’s managing to get a plethora of clients — from e-commerce brands to nonprofits:
Businesses You Can Start With Little Capital
1. Start a business doing freelance web design.
If you’re savvy with design, tech, or both, you should think about offering freelance web design services. Also, even if this 颈蝉苍’迟 your reality (it’s not mine either), emerging professionals and growing businesses are always looking for affordable ways to establish their online presence, and you can help them do just that … if you get good at building a user-friendly website.
I know the ladder won’t happen overnight, so here are some easy-to-use website design platforms that I’ve handpicked and highly recommend practicing with if you’re thinking about starting web design as a legit form of earning some capital:
- : A highly visual platform perfect for creating sleek, modern websites. Readymag is known for its drag-and-drop functionality and minimalist designs, making it ideal for portfolios, creative projects, and one-pagers.
- : You might already use Canva to design social media posts, but did you know it also offers website templates? Canva’s intuitive interface and pre-made layouts make it a fantastic option for creating simple, attractive websites without too much technical know-how. It’s great for landing pages, personal blogs, or event promotions.
- : Webflow gives you the flexibility of coding without needing to write a single line of it. It’s especially great for e-commerce stores, business websites, and dynamic designs. Webflow does come with a bit of a learning curve, but once you master it, the possibilities are endless.
2. Start a business selling online courses.
Are you an expert in something? It doesn’t even have to be the most grandiose skill. Whether it’s baking, mastering Excel spreadsheets, or brand building, there’s likely a gaggle of eager customers willing to pay for your knowledge. Folks are always looking to learn and enhance their expertise, and if you’ve got the know-how, you can turn it into profitable educational content.
If you don’t know where to begin, here’s my recommendation for where to start: identify a hobby you’re passionate about and build content that educates, solves a problem, or provides value to others.
Check out these examples of creators and platforms that are already doing this for some inspo:
- : ilovecreatives creative online courses on everything from video editing to digital marketing, all presented in a fun, approachable way.
- : One of the most popular platforms for building and hosting your own online courses. It’s user-friendly and packed with tools to help you organize your content, track student progress, and market your courses effectively.
3. Start a business selling handmade items.
Say you’re good at crochet. Or jewelry making. Or upcycling. Whatever your fun little craft may be, there’s a market for unique, handmade goods. Whether it’s cozy scarves, custom bracelets, or repurposed furniture, handmade products have a charm that mass-produced items simply can’t compete with.
And you don’t have to be perfect to start. Your handmade items don’t need to be museum-quality to resonate with customers. What matters most? Your unique perspective and the story behind what you create.
If selling handmade items sounds like it's up your alley, here are some places you can boost your work:
Grab those knitting needles, that beading kit, or that old piece of furniture waiting for a makeover, and turn your hobby into a side hustle … or a main one.
Heavy Pockets or Not, Start Your Business Anyway
Even if you’re not swimming in cash, guess what? That doesn’t mean your dreams of entrepreneurship need to be put on ice.
Starting a business doesn’t always require a mountain of money, but it does demand creativity, determination, and the guts to get started with what you have. If you’re feeling apprehensive about diving in, here’s my best advice:
- Start small, scale smart.
- Heavy pockets aren’t what make great entrepreneurs. Resourcefulness and resilience are.
- Focus on building something sustainable instead of going all-in at once.
At the end of the day, a lighter wallet doesn’t mean a lesser chance of success. It’s just another challenge that will make your story that much better when you finally crush it. Work with what you’ve got, start building the business you’ve been dreaming of, and everything will fall into place.
Free Business Plan Template
The essential document for starting a business -- custom built for your needs.
- Outline your idea.
- Pitch to investors.
- Secure funding.
- Get to work!
Download Free
All fields are required.
You're all set!
Click this link to access this resource at any time.
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