How to Start a Business with No Money

Starting something new is never easy, especially if it’s about kicking off your own business. It usually takes a huge amount of time, effort, risks, and, of course, money. The latter often turns out to be a stumbling block along the way. But for entrepreneurs, the challenges are what make the journey worthwhile. So, let’s explore how you can start your business, even if you don’t have money.

Small Business in the US in 2025

Small businesses, which amount to 99.9% of all businesses in the U.S., play a big role in the country’s economy. They contribute around 43.5% to its GDP.

In recent years, starting a business has become more popular than ever. In 2020, the number of new business applications doubled compared to previous years. Since then, more than 5 million applications have been filed annually.

It goes without saying that, apart from opportunities, entrepreneurship brings challenges. And some of them are crucial for building resiliency. Around 18% of businesses close within the first year of existence, and 38% say they fail due to a lack of capital.

However, even if you don’t have much money, starting a successful business is still possible. It just takes more time, effort, and planning.

How to Start a Business Without Money

Figure out what you’d like to do

It all starts with an idea. For instance, iScanner user Chris created an innovative online retail startup by mixing two things: his passion for an active lifestyle and his hobby of designing clothes. While cycling, he noticed that cyclists and pedestrians often weren’t visible to drivers. So, he decided to merge style and safety. Today, his company offers unique reflective T-shirts and baseball caps to help active people stay both fashionable and visible.

This is just one example of how ideas can be born and brought to life. You’re free to come up with your own. The most important thing is that your idea should match your skills. If you dream of building a spaceship but have a background in agriculture, that might not be the best fit. Here are a few general questions that can help you evaluate your idea:

• What skills and experience do I already have, and how can they support my idea?
• Does this idea reflect my interests?
• What tasks will this business require? Can I handle them myself?
• Is there anything that falls outside my expertise? Can I learn it?
• What makes this idea different or better than what already exists?

Study the market

Got an idea? Great! The next step is understanding the market. You should figure out who your potential customers are, what they need, and how your product or service can help them. The best thing is that you don’t need a research budget to do this. Just a bit of time, curiosity, and online surfing will be enough.

Try to understand:

• Who your competitors are and what they offer. What strengths and weaknesses do they have? What positive and negative peculiarities do customers highlight in reviews?
• Your potential customers. Who are they? What problems are they facing? How can your idea solve their problems?
• Trends. Check Google Trends, social media, and threads on Reddit and Quora to see what people are talking about. It’s a free way to find out what’s on your potential customers’ minds and whether your idea rings a bell or needs some improvement.

Create a business plan

A solid business plan for a small business with no money is essential. It helps you clarify your idea and attract potential partners, customers, or even future investors.

A standard business plan includes:

• Executive summary. This section should contain your company’s mission statement (its core values, culture, ethics, and primary goals), 
• Description of products and/or services. Specify what your business is planning to sell or offer. Include pricing, how long the product lasts, and what makes it valuable to customers.
• Market analysis. Talk about your industry and competitors. Explain where your business fits in, who your ideal customers are, what makes your idea different or better than what already exists, and how you plan to stand out.
• Advertising and promotion plan. Describe how you plan to attract and keep customers.
• Financial Plans and Projections. Share your financial goals and what you expect to earn and spend in the first few years.

You can learn more about writing a business plan on the U.S. Small Business Administration website.

Be practical

Cutting unnecessary expenses is one of the smartest things you can do, especially when starting a business. The COVID-19 pandemic showed that many work processes we once thought could only be done in person can be handled remotely just as effectively.

A physical office might still be a symbol of legitimacy, but it comes with significant costs. Rent alone can eat into your budget, not to mention utilities like water and electricity. Then there’s furniture, computers, printers, and a coffee machine. Eventually, you’re paying not just for space, but for maintaining it.

The good news is that you simply don’t need a physical office anymore. Instead, invest in affordable tools that get the job done. For instance, iScanner can handle all your document needs, from scanning and e-signing to sending files, right from your smartphone. Its AI features automatically improve image quality, making your scans look professional even if they’re taken on the go, whether you’re in the car or rushing between meetings.

And if, for any reason, you need your scan to resemble one made on a traditional office scanner with all its imperfections, iScanner has just introduced the Office Filter feature, which can replicate that effect perfectly.

Get funding

If your business idea involves upfront costs such as purchasing materials, renting a space, or hiring staff, you’ll definitely need some funding to get started. However, if you plan to offer services that don’t require those expenses, like photography or pet sitting, just skip this step.

Anyway, here are a few ways to raise capital:

• Crowdfunding. In simple terms, it lets you get money from people you don’t know by telling them about your idea and why it matters. People give money as donations and don’t expect to own any part of your business. Kickstarter and Indiegogo are among the most popular crowdfunding platforms.
• SBA Loans. The U.S. Business Administration program offers microloans of up to $50,000 to support SMBs. This funding can be used for working capital, inventory, supplies, furniture, machinery, and more. If you’re going to apply, check this list of approved local lenders that provide these loans.
• Explore venture capital or angel investors. Venture capitalists and angel investors provide funding to startups with strong potential. However, in exchange, they may ask for partial ownership or an active role in managing the business.

Spread the word about your business

Finally, people need to know your business exists. And once again, you don’t need a big marketing budget to promote it.

Start by creating social media profiles for your business. Choose platforms that match your product or service. For instance, if it’s visually appealing like food or fashion, Instagram or TikTok are great options. If your business needs to look more professional, LinkedIn might be a good fit.

Don’t hesitate to talk to local media as well. Many outlets are happy to feature small business stories, especially those from their community.

And don’t forget to create a website. But if it’s too expensive or complicated for you, a simple landing page can be a way out. Carrd, Landingi, and Canva can help you build one.