The Best Way To Start A Business Without Money
Do you have a business idea but no funds to execute your vision? Starting a business without seed money can be difficult, but it's not impossible. Keep on reading to hear how.
So, you want to start a business, but you’re short on funds or have bad credit. This isn’t as much of a problem as you might think.
We’re here to show you the best way to start a business with no money. Whether you want to know more about the best small business loans, or just what options are available to you, we’ve got you covered!
Table of Contents
How To Start A Business With No Money
There are many ways you can start a business even if your credit history isn’t great or you don’t have much money saved up.
Here are the steps you need to take to start a business with no money:
Pick A Free Business Idea
Some of the most popular business ideas for entrepreneurs who want to start a business with no money include:
- Service-based businesses (house cleaning, virtual assistant work, freelancing, etc.)
- Handcrafted goods
- Digital products
- Social media influencing
- Affiliate marketing
- eBay (or other platform) reselling
Most of these are side hustles or side job ideas that can be done from home or in your free time.
Business Finance Options
|Best For Business Owners…
|With great credit scores, solid collateral, and meet traditional lenders’ strict borrowing requirements.
|Personal Loan For Business
|Who can’t get a traditional small business loan, haven’t made any sales, don’t have a good business credit score, and can be personally liable for the loan.
|Who need large loan amounts, low-interest rates, have the time to complete the lengthy application process, and are able to wait several weeks or more for fund distribution.
|Who want free money, have the time and energy to dedicate to lengthy application processes, and meet extensive qualifications.
|Business Lines Of Credit
|Who need flexible funding, can’t offer collateral, and want a revolving funding source.
|With equipment needs who want competitive rates, long repayment terms, and can afford a down payment.
Small Business Loans
There are generally 12 types of business loans that you’ll encounter as a new business owner. Here are some commonly asked questions about them:
Small Business Grants
These are the unicorns of the business startup funding world. As the closest thing to free money you can find, grants are highly competitive, time-consuming to apply for, and not a guaranteed source of funding for your new business.
Crowdfunding is a volatile way to try and raise enough funds to start your business.
Make Smart Investments
Start with the basics. Starting with a one-page business plan will help you determine the expenses you’ll have when getting started.
Focus on crucial needs like:
- Rent/lease for a business space
- Hiring staff
- Training staff/yourself
This is also the phase when you’ll decide on your business structure, do market research, decide on your financial goals, and network.
How To Start A Business With No Money And Bad Credit
Now, what if you have no funds and a less-than-desirable (or nonexistent) credit history? There are options for you, too!
The Bottom Line On The Best Way To Start A Business With No Money
Hopefully, you now have some ideas for how you can start your business with no funding. Bad credit can’t stop you from achieving your dreams of starting your own small business, either.
We encourage you to keep researching alternative financing for your small business. Don’t let seemingly impossible obstacles stop your journey. Where there’s a will, there’s a way!