How to start a business with no money

Jan Koum - ever heard of him? He’s the guy who co-founded WhatsApp. You know, that tiny messaging app that only sold to Facebook for $19 billion.

Now, Jan didn’t start with a tech empire, as a nepo baby, or with any investor money. He started with food stamps. He and his mom moved from Ukraine to the US and struggled to make ends meet.

This didn't deter him, though. Jan taught himself how to code using second-hand books and free internet access at a public library. No fancy office, no funding, just a used laptop, a problem worth solving, and a whole lot of grit.

So if you’ve got a great business idea but your bank account is saying “absolutely not,” relax. You’re not out of the game. You’re just getting started.

This guide will walk you through how to start a business when you’ve got basically no money. We’ll look at smart, scrappy business models you can launch and give you tons of tips that'll help support small businesses to launch, grow and scale.

Why you can start a business with no money

Before we get into the many different low-cost business ideas you could launch on a shoestring (or maybe just a paperclip and Wi-Fi), let’s clear the air on something:

Success isn’t tied to deep pockets

There’s this myth that you need a big bank account or a startup loan the size of a small mortgage to start a business. But that's just not true.

Some of the most successful businesses started with almost nothing. Just a great idea and a lot of hustle.

Don't just take our word for it, though:

• About 33% of small businesses in the US are started with less than $5,000.
• 54% of small business owners bootstrap using their own money.
• 12% turned to friends or family.
• Only 14% use bank loans, and a mere 3% land venture capital.

So if you're not sitting on a pile of investor cash, congrats, you're actually in the majority.

Famous entrepreneurs who started with almost nothing

Need a little more inspiration? 

Here are a few big names who didn’t wait for investors to believe in them:

1. Steve Madden launched his now-iconic shoe brand with $1,100.
2. Richard Branson started what would become the Virgin empire with a student magazine, zero cash, just grit and a mailing list.
3. Sophia Amoruso built Nasty Gal from scratch by flipping thrifted clothes on eBay.

Advantages of low-cost startups

Starting a business with little or no money might sound like a disadvantage, but weirdly enough, it can actually be a good thing. 

Sure, you need to take a glass half-full approach to thinking about it, but we've got some great reasons that'll help you do just that:

1. Flexible schedule = freedom to experiment: When you're not tied to investors, high rents, or keeping account of tens or hundreds of employees, you can build your business around your life — not the other way around. Work at 6 AM or 11 PM. Take potential client calls from your couch. No one cares, as long as you deliver.
2. Less pressure: If you didn’t pour thousands into your business venture, guess what? There's not much to lose. And when there's less on the line, you're more willing to take smart risks.
3. Easy to pivot: Big companies move like cruise ships. You? You’re a jet ski. If something’s not working at your own business (a product, a strategy, a target market) you can turn on a dime and try something new without begging a board of directors.
4. Easier to scale: When you start lean with minimal upfront costs, you naturally build systems that are scalable. You're not throwing money at problems; you’re solving them efficiently.

Low-cost business ideas you can start

Enough theory. It’s time to look at the very, many different types of businesses you can start without draining your savings, maxing out a credit card, or begging your cousin for a loan.

The trick here is playing to your strengths, using what you already have, and picking a model that doesn’t require a warehouse or a $50K website.

Let’s break it down by category so you can find the one that fits you best.

Service-based businesses

If you’ve got a skill (literally any marketable skill), you’re already halfway there.

Service-based businesses are hands-down one of the easiest and cheapest ways to start making money, because they rely on you, not inventory or upfront investment.

You don’t need a storefront. You don’t need a team. You just need to offer a service people are willing to pay for.

Here are a few low-cost (or no-cost) service-based ideas to kick things off:

• Freelancing: Writing, editing, graphic design, consulting, coding, marketing - whatever you’re good at, someone out there needs it. Start by offering your services on platforms like Upwork, Fiverr, or just sliding into a few LinkedIn DMs (nicely, of course).
• Virtual assistant: Businesses always need help with admin, email management, scheduling, and customer support. All you need is a laptop and some organizational skills. Bonus points if you love spreadsheets.
• Tutoring services: If you’re great at math, science, languages, or test prep, there’s a market for that. You can tutor online using Zoom or locally in your community.
• Home services: Think home cleaning, organizing, handyman work, or yard care. These businesses grow fast with good word-of-mouth and most start with just one person and some basic tools.
• Professional organizer: If you’ve got a knack for turning chaos into calm (and your sock drawer looks like a Pinterest board), offer your services to overwhelmed homeowners or small businesses.

Online models

Want to start a business without leaving your couch? You're in luck. The internet is a playground for low-cost entrepreneurship.

Online business models are perfect if you want to work from anywhere, avoid stocking physical inventory, and scale fast.

Some of these can be started with literally zero dollars. Others might need a little pocket change (like $20 for a domain name or $9.99/month for a platform), but we’re still talking very low stakes.

Let’s break down a few popular (and proven) options:

• Dropshipping: You sell physical products online, but you don’t keep any inventory. When someone orders, your supplier ships it directly to them. You’re the middle person. This means no boxes in your garage, no post office runs.
• Print-on-demand: Similar to dropshipping, but with custom designs. Think T-shirts, mugs, phone cases, stickers. You upload the design, someone buys it, and a third party prints and ships it.
• Digital products: Sell ebooks, templates, Notion dashboards, checklists, online courses, or even downloadable art. You create it once, then sell it an unlimited number of times. We like to call that passive income - making money when you sleep.
• Online marketplaces: Platforms like Etsy, Gumroad, or even Facebook Marketplace let you sell directly to buyers with built-in audiences. Whether you’re selling vintage clothes, handmade soap, or downloadable wedding invites, these platforms are low-barrier ways to test the waters.

Local and seasonal micro-businesses

You know what they say: sometimes the best business opportunities are sitting right outside your front door.

You don’t need a Shopify store or a marketing degree to make money locally. In fact, some of the simplest, most profitable businesses are in your backyard, literally.

Local businesses often come with very little startup cost. Some are seasonal, some are ongoing, but all can be launched quickly with little more than word-of-mouth and a couple of flyers.

Here are a few ideas that are low on cost, high on hustle:

• Pet sitting or dog walking: People love their pets and are happy to pay someone trustworthy to care for them.
• Yard work & landscaping: Mowing lawns, trimming bushes, leaf raking - these services are always in demand. If you’ve got basic tools (or can borrow them), you can get started this weekend.
• Seasonal services: Snow shoveling in the winter, leaf removal in the fall, gutter cleaning, holiday light setup - you get the idea. You can clean up (pun intended) by offering services that people don’t want to do themselves.

Hybrid or pop-up formats

Sometimes the best way to start a business is to dip your toes in without diving in headfirst.

Hybrid and pop-up models let you do just that, combining the flexibility of small-scale setups with the buzz of real-world selling.

Think of it like a business trial run that doesn’t require signing a long lease.

Here are some ideas that keep costs low but still get you in front of customers face to face:

• Pop-up shops: Set up shop for a weekend at a local market, festival, or inside an existing store. Sell anything from handmade jewelry to vintage clothes, no need for a permanent storefront.
• Food-service kiosks or stalls: Got a killer recipe or snack idea? Try selling at food fairs, farmers markets, or pop-up food events.
• Shared kitchens: These communal cooking spaces let food entrepreneurs rent time and equipment by the hour or day. Perfect for catering, meal prep services, or launching a food product without the headache of building your own kitchen.

How to plan your no-money startup

You’ve got ideas, maybe even a couple favorites from the list. Now it’s time to get serious, but not too serious. Planning your startup doesn’t mean writing a 100-page report. It means getting clear on what you want to do and how to do it without spending a fortune.

Define your business idea and target audience

Start with you. What skills and passions do you have? What problems do you notice around you that you’re uniquely positioned to solve?

Then think about who needs your product or service. The more specific, the better. For example: instead of “I want to tutor,” try “I want to tutor high school students struggling with algebra in my town.” or instead of "I want to start an online store" say “I want to sell eco-friendly, handmade skincare products to busy moms who care about natural ingredients.”

This focus will guide everything else you do. The clearer you get about who you’re serving and what problem you’re solving, the easier it will be to create something people actually want.

Conduct low-cost market research

You really don’t need expensive surveys or focus groups. Start simple:

• Ask friends and family what they think of your new business idea
• Post polls on social media or in local groups to people who may be potential clients or potential customers.
• Browse forums and online communities where your target audience hangs out.

The goal is to validate that people actually want what you’re offering and to learn what they care about most. For instance, if you want to start a landscaping business, ask around: What kind of yard services do neighbors actually need? How much are they willing to pay? What frustrates them about their current options?

Write a business plan

Here’s what to include:

• Executive summary: A quick overview of your business idea and what makes it stand out.
• Value proposition: Why should customers pick you? What problem are you solving?
• Target customers: Who exactly are you serving, and how will you reach them?
• Marketing plan: The ways you’ll spread the word to get steady income and steady clients.
• Operations plan: The steps you need to take to launch and run the business day-to-day.
• Startup costs: What minimal expenses you’ll need to get going.
• Financial projections: Rough estimates of your expected income and expenses. Share any financial statements.
• Milestones & goals: What success looks like and when you plan to hit certain targets.

Estimate minimal startup costs

Even a “no money” business might have a few small expenses. This could be a website domain, basic supplies, marketing materials, or permits, for instance.

Use free online calculators or simple spreadsheets to list what you really need and roughly how much it will cost.

If something feels like a “nice to have” but not essential (like hiring employees you may not need yet) put it on hold until the business is making money.

TIP: Not quite sure of the difference? Check out our small business must-haves guide.

How to set up your business with zero or minimal funds

With a little creativity and resourcefulness, you can get your venture off the ground affordably. Here’s how:

Leverage free tools and resources

Why pay for something when there’s a free version that gets the job done?

• Build your website using cheap website builders like Epos Now's online website builder.
• Learn the ropes with free online courses on platforms like Coursera, YouTube, or even your local library’s digital resources.

Barter or trade in services

Don’t have the skills you need? Trade what you’re good at for help. Maybe you’re a whiz at writing but need a logo. Find a graphic designer who needs a copywriter and swap services. It’s networking and saving money all in one.

Bootstrap marketing

Get the word out without spending a dime upfront:

• Rely on word-of-mouth referrals from friends and early customers.
• Post regularly on social media, create helpful content, and join community groups where your audience hangs out.
• Attend local networking events or meetups, often free or low-cost.

Use pay-as-you-go or free trial services

For tools or services you need but can’t afford long-term yet:

• Sign up for free trials of web hosting, email marketing, or accounting software.
• Use pay-as-you-go options so you're not tied into a long, expensive contract.

Just remember to cancel before the trial ends if you don’t want to commit.

TIP: Check out our Starting a Business Checklist to run through everything step by step.

Tips for growing your small business venture

You've prepped and launched, now it's time to grow, grow, grow. Here's how:

Validate your idea with pre-orders or pilot offers

Before you spend money on inventory, packaging, or even a full product line, test the waters.
Offer a pre-sale or limited-time service package. If people pay before it exists, you’re on to something. If they don’t, you’ve saved yourself time and money.

Use pre-sales to test demand before spending on inventory.

Overdeliver, be kind, respond fast. Little things go a long way.

You absolutely need to focus on providing great customer service. Happy customers are your best (and cheapest) marketing team.

They’ll come back and bring others with them, so customer satisfaction is key.

Differentiate your brand

What's making you stand out from all of the other business owners out there?

Why are you special? Unique? Different?

Define your tone, tell your story, and make sure people remember you.

Whether it’s humor, helpfulness, honesty, or heart, let your personality shine through your brand.

Use local and online communities to find clients

You don’t need a giant ad budget to get noticed.

Join Facebook groups, local business directories, freelancing platforms, and community forums.

Comment, share value, answer questions. Become known in the spaces where your ideal customers already hang out.

How to scale without raising large capital

Right, we're not talking pitching to investors or racking up debt here. In fact, plenty of successful entrepreneurs grow by staying lean and strategic. They do that by:

Reinvesting profits into growth

This is the golden rule of bootstrapping: take the money you make and put it right back into your business: upgrade your tools, improve your website, run ads, and hire help. Small, smart reinvestments using your startup costs and profits add up and keep you in control.

Outsourcing

Don’t rush to build a team. Start by outsourcing specific tasks to freelancers or contractors.
Design, bookkeeping, customer support, social media — hire as-needed, not full-time.
You get expert help without the overhead.

Automating

Use affordable tools to automate things like:

• Scheduling posts
• Sending invoices
• Following up with leads
• Collecting payments

A point of sale system, for instance, can automatically handle transactions, track inventory, send digital receipts, and even pull reports. It’s like hiring a mini assistant without paying hourly.

Explore small funding options strategically

If and when you do need a little financial boost, look for smart startup capital. Options include:

• Microloans
• Grants for small businesses
• Pitch competitions
• Crowdfunding
• Local or government-backed startup programs

Now, here at Epos Now, we offer a flexible financing solution designed for small and medium-sized businesses, up to $1M in funding, to be exact. 

Common habits for success with minimal funds

You don’t need deep pockets to build a successful business, but you do need the right habits:

Be resourceful and creative

When money’s tight, creativity becomes your biggest ally. Think in terms of "What can I do with what I’ve got?" instead of “I can’t afford that yet.”

Prioritize serving the customer and iterative improvement

Listen closely. Pay attention to customer feedback. Make small improvements constantly. A business that evolves based on real needs stays relevant and keeps customers coming back.

Track every dollar

Watch your cash like a hawk. Know what’s coming in, what’s going out, and what’s absolutely necessary. You don’t need to be an accountant — just stay aware and intentional.

Build a network of other business owners and mentors

Don’t go it alone. Talk to others who’ve done it (or are doing it). You’ll find new ideas, avoid costly mistakes, and maybe even land a few referrals along the way.

Keep a flexible schedule and mindset

Things will go sideways, that’s part of it. Stay flexible, pivot when needed, and focus on progress over perfection. Rigidity kills scrappy small businesses.

Final thoughts

That’s it from us. We hope we’ve shown you that starting a business with little to no money isn’t just possible, it’s practical, smart, and actually how many of the greats began.

As Richard Branson once said: "You don’t learn to walk by following rules. You learn by doing, and by falling over."

So go ahead, take the first step. It might not be perfect, but it’ll get you moving.