How to Start a Business without any Money

by jindiola on February 1, 2013

How to Start a Business without any Money

Screenscrape: Financial Problem Photoshop

If you’ve got a great idea for a business and are prepared and passionate about getting started, but don’t have any seed money to get started with, you may be stumped as to what to do. Fortunately, there are several ways to get your company started, even if you don’t have the cash you need.


One of the most common ways to get some start-up cash is to take out a loan. Banks offer small business loans, but can be strict in their requirements, which can make it difficult to get one. There are several peer-to-peer lending sites, where you put in your information and average people, instead of a bank, give you the loan you need to get started. The interest rate may be a little higher than a bank’s, but the money goes directly to regular people who believe in your ability to repay the loan, and you have less constraints or requirements than you might see with a bank.


Instead of getting a loan that has to be repaid, you could ask for contributions. Sites like Kickstarter work specifically with people who are starting their own businesses or creating their passion projects. People donate money to your business, and in return you send them one of the first products you make once you’ve gotten started. It’s mutually beneficial and allows you to get started, and the people who donated get to try out your cool new product, and they’ll hopefully tell others about it and spread the word for you. It’s truly a win-win scenario.


Another possible option to get some cash for your business is to bring in partners. If you sell a portion of the company to another person and allow them to co-own your business, you can find yourself with a valuable ally who believes in your idea as much as you do. However, be sure that you both have the same goals and plans so this arrangement won’t cause difficulties down the road.

Don’t Quit Right Away

If you don’t quite have enough saved up or if you haven’t yet proven the viability of your new business idea, you may want to consider starting while keeping your current job. Many employers allow for flex time, so consider changing your work schedule to allow time to work on your new business. You may also want to ask your spouse or significant other for support by taking over some of the household chores and other life responsibilities to free up time on nights and weekends for you to get your business started. Another option is putting in overtime to increase your savings before striking out on your own.

Creating a business from the ground up without much cash, and then making that business successful, can be very difficult and take some sacrifices on your part. However, if you look carefully at your different options and make the choices that will work best for you, you’ll quickly find yourself on the road to wealth and success.

Laura King writes for business and entrepreneur blogs. If you’re a working professional considering striking out on your own but need to further your business education first and don’t want to quit your job yet, an EMBA might be a perfect fit.

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