How to start a business with no money: 8 tips 

Starting a business without a safety net or funds to back it up may seem difficult (or impossible). But you can do it with the right tools, resources, mentality, and know-how.  

To build a safety net yourself when learning how to start a business, market research, accessible resources, separated finances, and mentors will help. Taking calculated risks with expertise and purpose will help you turn your big idea into a successful business. 

How to start a business with no funding and no safety net 

Starting a business can feel somewhat like a free fall, especially if you don’t have a safety net—like a regular paycheck—to catch you. However, with some careful planning and managing your own expectations, it’s more than doable.  

Use this quick guide to learn how to start a business with no money and empower yourself with the knowledge you need to become your own boss.  

1. Consider keeping your day job 

There’s nothing like the excitement of starting your own business. You see unlimited potential for yourself. You see the financial impact it can have on your life and the impact you can make on the world. But it might make sense to pump the brakes for a second. 

Your small business will take time to get going. So, before you “burn the boats” and quit your day job, consider keeping the 9-to-5 to support the cash flow of your new venture. Use your 9-to-5 to support your 5-to-9, as the saying goes.  

Use the income from your day job as a jumping-off point to take risks and make the new business successful. Investing your own earnings into the new business will help grow the venture steadily. But remember—only invest what you can lose.  

The same principle applies to your savings accounts. Investing savings into your new business venture may mean you never get that money back. Eventually, the business should grow into something that can support you financially if it finds the right footing—but if not, know you may lose that cash.   

2. Choose a business type you can start with little or no money 

Want to learn how to start an online business with no money? Here are a few ideas to consider:  

• Selling services: Many service-based businesses, such as pet sitting, social media management, freelance graphic design, and bookkeeping, can have low startup costs. You may need to invest some money in equipment or an online certification course, but after a small investment of time and money, you’ll be on your new career path.  
• Selling crafts or baked goods: Sites like Etsy have made selling knitted scarves or Grandma’s chocolate chip cookies a viable method for how to start a business online. You may need to invest your money as you scale, but you’ll need only ingredients, oven mitts, and some elbow grease to get started.   
• Selling digital products: You can also launch creative products like e-books, printable graphics, or online courses with little or no money out of pocket. Create them once, market them well, and you can have a profitable business for years to come. 
• Affiliate marketing as a blogger: Ask companies for affiliate links for the products you use every day. Promote the products on your blog and get paid a commission every time customers buy through your link. 
• Becoming an influencer: Build up your online audience and use your social media accounts to promote products you use or brands you support. Like affiliate marketing, you can get your own personal links to these products that pay you every time your social media audience buys.  
• Dropshipping from an online store: Professional dropshippers source products like shampoo, soap, and kitchen appliances, often at wholesale prices. They advertise these items on marketplaces like Amazon or their own e-commerce platforms at retail prices. When a customer places an order, the dropshipper forwards the order details to the supplier, who ships the product directly to the customer. Dropshippers earn a profit on the price markup. 
• Personal chef: If you have some cooking and nutrition skills, you could start prepping meals weekly or monthly for your clients. You might build the cost of ingredients into your pricing, meaning all you’d need to get going is effort and your own kitchen. 
• Content creator: If you have a creative talent like video design or editing, content creation may be for you. Educate, entertain, inform, or advertise on your favorite platforms. As your follower count grows, so will your income.  
• Online tutoring: Tutoring doesn’t have to be in traditional education subjects. Are you a good baker? Are you an expert on yoga? You can set up online classes on various topics. And, thanks to all the e-learning platforms out there for creators, you can launch your online class in no time.  

3. Research your business idea 

One of the best ways to test a business idea before taking the plunge is to conduct market research. Gather data on potential customers, competitors, and the industry as a whole.  

Knowing the ins and outs of the industry before diving in can help minimize your risk. Start by surveying people in your target market to see what they think of your business idea and how much they’d spend on it. Then, look at what the competition does and how you can do it better. 

When evaluating your big idea, it’s important to consider what could go wrong—especially in the early stages. They don’t call starting a business a risk for nothing. Whether it’s a calamity from Mother Nature, a financial collapse, a change in the industry, or something else entirely, your research will help you in the event of a disaster. And to ensure the business doesn’t fall apart before it even gets a chance, set up some emergency savings for business use only.  

4. Write a business plan 

Think of your business plan as your map. Drafting a strategic, well-organized plan not only lays the groundwork for your success but is also instrumental in acquiring the partners or funding necessary to scale. 

In your plan, emphasize what makes your business unique. What are you doing differently than other companies in your space? Use visuals and avoid industry jargon to ensure your business plan is easily digestible by anyone who receives it.  

In addition to a reader-friendly format, be sure your business plan contains these 4 elements: 

• Company overview: Describe your business operations and structure (e.g., limited liability corporation (LLC), corporation, sole proprietorship). 
• Market research: Formalize and summarize the findings from researching your business idea. Explain how you’ll serve your target audience and separate yourself from competitors. 
• Marketing strategy: Outline the channels you plan to use to reach new customers (e.g., social media, email marketing, direct mail). 
• Financial plan: How will you earn and spend money in the business? Your plan should lay out revenue and expenses in a profit and loss (P&L) statement. It should also make cash flow, revenue, and fundraising predictions. 

5. Create a budget 

Proper business budgeting is an important skill you’ll lean on throughout your business career. In the beginning, your budget ensures you’re using every dollar in the best way possible. As your business grows, use your budget to make your company attractive to stakeholders who can help you scale. 

Follow these steps to start your business budgeting process: 

• Track revenue and expenses: Evaluate your business for all possible sources of income and add them together. This number will be your total revenue. Next, combine your fixed (expenses that stay the same month to month, like rent, debt, employee salaries, and taxes) and variable expenses (expenses that vary, like employee hourly wages, utilities, raw materials, and your salary) to get your total expenses. You’ll track these numbers together in a single statement known as a profit and loss (P&L) statement.  
• Save up a contingency fund: Set aside a portion of revenue every month to build up a contingency fund. Scaling up is a worthwhile goal, but you want to ensure you do it responsibly.  
• Assess your profitability: Tally your expected revenue, then subtract your expenses. If you’re left with a positive number, you’re profitable.  
• Finalize your budget: This is where you analyze your math from the previous step. Is your business profitable, or do you need to cut expenses somewhere? After careful examination, you should work to set achievable revenue and spending. Revisit your budget as time goes on. 

6. Network 

As you enter the business world, you’ll begin to see the truth behind the phrase, “It’s not what you know; it’s who you know.” Networking is one of the greatest tools for building your business. The right relationships can provide mentorship, funding and expansion opportunities, and an invaluable support system.  

Attending events like business incubators and accelerators can help you get things like cost-effective office space, funding access, and free mentorship for your startup or early-stage business. The key is consistency. Routinely getting your name out there and maintaining a stellar reputation can do amazing things for you and your business.  

7. Find funding for your business 

When most entrepreneurs start their journey, the money to launch and grow might seem like the biggest hurdle. But the truth is that a good idea or business—and a solid business plan—can increase your odds of getting the funds you need. You just need to look for funding in the right places. 

Here are some small business funding options to explore: 

• Personal savings: You may have enough money in your personal savings to get your business off the ground. For example, you could pull funds from a savings account or other investments. If you go this route, though, be sure to invest only money you can afford to lose.  
• Friends/family: The people closest to you may be willing to support your business from the beginning. Be sure to put everything in writing so everyone is on the same page.   
• Crowdsourcing: Online platforms like Kickstarter enable people worldwide to invest in your business. These sites create a win-win scenario: You get the capital you need, and investors get access to a promising early-stage opportunity. 
• Venture capital: Venture capital is money from professional (usually accredited) investors who specialize in funding high-growth startups. Their funding usually buys them a percentage of the business or a certain number of stock shares. 
• Angel investors: Angel investors use their personal money to help fund your business, typically receiving equity in your business in return. Some angel investors also help guide you on your entrepreneurial journey.  
• Small business loans: You may be able to secure a small business loan from a bank, an online lender, or a government-backed program offered by agencies such as the Small Business Administration (SBA). The better your credit score is, the better your interest rate and loan terms will typically be. 
• Grants: Typically offered by government agencies, foundations, or corporations, grants provide funds you don’t have to pay back. They’re often tied to a specific goal or criteria and can help cover startup costs. Websites like grants.gov and SBIR.gov are great places to begin your grant search. 
• Accelerators and incubators: If other business owners or investors see potential in your business, you may be included in an accelerator or incubator program. Many of these focus on mentorship and guidance as you get your business off the ground, but some may also offer funding to help start you on the right path. 

8. Scale and grow 

The steps above set a solid foundation for how to start a business with no money. Once you’re up and running, scaling will be your next challenge. 

Networking and mentorship can provide funding sources and scaling opportunities to help you reach the next level. It also helps to analyze what’s been working in your business. Assess the data behind your most lucrative months or transactions and look for trends. If you have the resources, it may even make sense to hire a data analytics company to help you spot trends and synthesize information for new opportunities.  

It’s also important to keep in mind that just because no one else has your idea or is doing what you’re doing in your backyard doesn’t mean it’s a bad idea. Do your research, stay determined, and know that if you hit a roadblock, it’s just a challenge to go through or climb over. It’s not the end of the road. 

If you encounter a situation you don’t know how to handle, Intuit is here to help. Leverage our library of financial literacy resources and success stories to help get your budgeting and tax preparation right, or find local financial team members to help you reach new heights. Intuit is proud to help you power your prosperity.