{"id":5324,"date":"2021-08-27T12:01:41","date_gmt":"2021-08-27T17:01:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/how-to-start-a-business-with-no-money.html"},"modified":"2024-05-22T11:59:23","modified_gmt":"2024-05-22T16:59:23","slug":"how-to-start-a-business-with-no-money","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/how-to-start-a-business-with-no-money.html","title":{"rendered":"How To Start a Business With No Money"},"content":{"rendered":"\n<div class=\"fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30  wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-section-main fl-page-articles fl-section-main fl-section-main-full-width\">\n        <h1 class=\"fl-no-margin-top\">How To Start a Business With No Money<\/h1>\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/amber-sheppard-esq\/\">Amber Sheppard, Esq.<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/amber-sheppard-esq\/\">Amber Sheppard, Esq.<\/a>\n                | Last updated\n        <time>\n                            May 22, 2024\n                    <\/time>\n    <\/div>\n\n            <div class=\"fl-gutenberg-byline-editorial-note fl-text-sm\">\n            <p>Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n        <\/div>\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n<p>Creativity and a solid business plan are valuable assets if you want to start a business with little or no money. In the following sections, FindLaw explains the importance of having a good business plan to help attract investment. This article also offers some non-traditional methods for financing a new small business, such as crowdfunding.<\/p>\r\n<p><i><b>Form your LLC with confidence.\u202f<a href=\"https:\/\/legalzoomcominc.pxf.io\/c\/4851649\/2115288\/26746?subId1=how-to-start-a-business-with-no-money-in-content\" rel=\"sponsored noopener\" data-cta=\"Biz LZ - LATL Callout\" data-cta-url=\"legalzoom.com\" target=\"_blank\">Our trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/b><\/i><\/p>\r\n<h2>Start With a Business Plan<\/h2>\r\n<p>Turning your business idea into a business plan is the core of any funding pursuits. Whether crowdfunding, angel investors, venture capitalists, or small business loans, all potential investors and lenders will consider the information in your business plan.<\/p>\r\n<p>No matter the route you choose as a business owner, you&#8217;ll need a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/business-plan-overview.html\">business plan<\/a>&nbsp;to guide you through starting and running your business. A detailed business plan can also help persuade investors to contribute capital.<\/p>\r\n<p>Here are some items to consider when putting together your business plan:<\/p>\r\n<ul>\r\n<li>How would you describe your business?<\/li>\r\n<li>Have you picked a unique business name?<\/li>\r\n<li>What is the type of business structure for your business?&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/checklist-starting-a-sole-proprietorship.html\">Sole proprietorship<\/a>, partnership,&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/forming-an-llc.html\">limited liability company<\/a>, or&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/what-is-a-corporation-.html\">corporation<\/a>?<\/li>\r\n<li>What are you selling? If you&#8217;re offering a service, explain it.<\/li>\r\n<li>Do you plan on hiring employees? If so, how many employees and what will their salaries be?<\/li>\r\n<li>Who makes up the customer base in your target market?<\/li>\r\n<li>How long do you anticipate it will take for your business to turn a profit?<\/li>\r\n<li>Have you been a small business owner before? Have you managed a business for someone else?<\/li>\r\n<li>Will you sell on a third-party e-commerce website like Amazon or Etsy?<\/li>\r\n<li>What is your business model? Will you start your own business or purchase a franchise?<\/li>\r\n<\/ul>\r\n<p>These are ideas that will get you thinking. You can use our FindLaw&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/contents-of-a-written-business-plan.html\">business plan template<\/a>&nbsp;to start. Now, you&#8217;re ready to present your business plan to investors or lenders.<\/p>\r\n<h2>Funding Your Startup<\/h2>\r\n<p>You should also have an idea of the amount of money you need to&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/sources-of-small-business-financing.html\">fund your small business<\/a>. Options include finding money-making partners, obtaining a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/loans-and-investors.html\">business loan<\/a>&nbsp;or line of credit, crowdfunding, and equity investors.<\/p>\r\n<p>Opening up bank accounts, getting lines of credit, and&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances.html\">managing your finances<\/a>&nbsp;are crucial to running a small business. Smart&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/the-importance-of-cash-management.html\">cash-flow management<\/a>&nbsp;will help you stay in business.<\/p>\r\n<h3>Bring in Partners With Money<\/h3>\r\n<p>If you have a business idea but have limited access to capital, you may want to consider finding a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/partnerships.html\">partner&nbsp;<\/a>who can supply you with startup costs. Some investors want to find small companies with the potential to become successful businesses. They&#8217;re willing to put money behind the business idea in return for an ownership stake.<\/p>\r\n<p>Angel investors are people who want to invest in small businesses. You can increase your online presence and use social media networks like LinkedIn and Facebook to find angel investors. If you advertise your business and yourself well, you may inspire an angel investor to donate individually, through a group, or through a network. Keep in mind that angel investors will want a say in business decisions and a share in the profits of the business.<\/p>\r\n<p>A&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/venture-capital-definition.html\">venture capitalist<\/a>&nbsp;is a private investor who finds a business with the potential to profit in the future. This investor invests in the company in exchange for an equity share. This gives the holder the right to vote, share profits, and claim company assets.<\/p>\r\n<p>Not every entrepreneur wants to give over a piece of their new company. Instead of investors, they turn to business loans.<\/p>\r\n<h3>Small Business Loans<\/h3>\r\n<p>You can apply for a&nbsp;<a href=\"https:\/\/www.sba.gov\/funding-programs\/loans\" target=\"_blank\" rel=\"noopener\">small business loan<\/a>&nbsp;through traditional banks and credit unions by submitting a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/business-finances\/loan-package-documents-and-information.html\">business loan application<\/a>. The&nbsp;<a href=\"https:\/\/www.sba.gov\/funding-programs\/loans\" target=\"_blank\" rel=\"noopener\">U.S. Small Business Administration<\/a>&nbsp;(SBA) offers potentially profitable business funding if the business owner can&#8217;t receive a traditional loan. This gives the business owners increased access to capital. Availability and terms of&nbsp;<a href=\"https:\/\/www.sba.gov\/funding-programs\/loans\" target=\"_blank\" rel=\"noopener\">SBA loans<\/a>&nbsp;vary by state.<\/p>\r\n<p>Some banks offer small business loans, but many are reluctant to lend money to startups with few assets or a poor credit score unless you offer your house or other personal assets as collateral.<\/p>\r\n<h3>Small Business Grants<\/h3>\r\n<p>Unlike loans, grants do not have to be paid back. But they do require tedious recordkeeping and potential audits from the grant source.<\/p>\r\n<ul>\r\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/small-business-grants.html\">Small business grants<\/a>&nbsp;are available to small businesses. These include state programs to retrain workers and programs meant to reinvigorate depressed regions.<\/li>\r\n<li><a href=\"https:\/\/www.sba.gov\/loans-grants\/find-other-sources-financing\/research-grants-small-businesses\" target=\"_blank\" rel=\"noopener\">Research grants for small businesses<\/a>&nbsp;are research and development grants available to certain small businesses. They include links to various government agencies through which the grants are offered.<\/li>\r\n<\/ul>\r\n<p>Federal grants can be found through a&nbsp;<a href=\"https:\/\/www.grants.gov\/search-grants\" target=\"_blank\" rel=\"noopener\">searchable database<\/a>. Various filters and search options help you narrow down those that may be a good fit.<\/p>\r\n<h3>Lines of Credit<\/h3>\r\n<p>Another funding option is a&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/sources-of-small-business-financing.html\">line of credit<\/a>&nbsp;for your business from a bank or other financial institution. This is the riskiest option. You can learn about business credit cards and business FICO scores&nbsp;<a href=\"https:\/\/www.findlaw.com\/legalblogs\/small-business\/whats-your-fico-small-business-credit-score\/\">here<\/a>.<\/p>\r\n<p>If you think your new business will take off immediately, you may want to consider getting a line of credit to finance it. But missed payments (even a single missed payment) can result in large financial penalties.<\/p>\r\n<h2>Low-Cost Business Startup Ideas<\/h2>\r\n<p>One great thing about having access to an internet connection is that regular people with awesome business ideas can lower the average costs of starting a business from scratch.<\/p>\r\n<p>Here are some examples of low-cost side hustle business startups:<\/p>\r\n<ul>\r\n<li>Bookkeeping<\/li>\r\n<li>Consulting business<\/li>\r\n<li>Dog walking or pet sitting<\/li>\r\n<li>Dropshipping<\/li>\r\n<li>Freelance writing<\/li>\r\n<li>Online courses<\/li>\r\n<li>Podcasts<\/li>\r\n<li>Selling real estate<\/li>\r\n<li>Service businesses<\/li>\r\n<li>Virtual assistant<\/li>\r\n<\/ul>\r\n<p>You may think the only way to fund a new business is by going to the bank and applying for a small business loan. While small business loans are a resource to begin pursuing your business, other creative ways can get a business off the ground with limited capital.<\/p>\r\n<h2>Try a Crowdfunding Platform<\/h2>\r\n<p>Much like the traditional strategy of creating a business plan to present to potential investors and loan officers, the same idea is applied to the general public by&nbsp;<a href=\"https:\/\/www.findlaw.com\/legalblogs\/small-business\/financing-your-business-what-is-crowdfunding\/\">starting a crowdfunding campaign<\/a>. Try using a crowdfunding platform to present your idea to everyday people who believe in your vision to become investors in your business.<\/p>\r\n<p>If you have an idea for a new product or service that people are looking for, online crowdfunding platforms are great places to present your ideas and try to obtain the funds you need to get your business started. Use these platforms to describe your product or service, share the startup costs, and state your business goals. Using crowdfunding platforms gives you access to a large pool of potential investors in your personal network on one platform.<\/p>\r\n<p>Crowdfunding, even for a local business, should be placed on an&nbsp;<a href=\"https:\/\/www.sec.gov\/tm\/divisionsmarketregtmcompliancecfintermediaryguidehtm\" target=\"_blank\" rel=\"noopener\">intermediary&#8217;s internet website platform<\/a>. Other than the notice of the crowdfunding offering, advertising the offering outside of the intermediary social media platform is prohibited.<\/p>\r\n<p>Crowdfunding platforms include:<\/p>\r\n<ul>\r\n<li>CrowdCube<\/li>\r\n<li>GoFundMe<\/li>\r\n<li>GoGetFunding<\/li>\r\n<li>Kickstarter<\/li>\r\n<li>Indiegogo<\/li>\r\n<\/ul>\r\n<p>There are regulations surrounding crowdfunding, so make sure to&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/avoid-crowdfunding-lawsuits-plan-advertising-carefully.html\">avoid crowdfunding lawsuits<\/a>.&nbsp;<a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/sec-equity-crowdfunding-rules-an-introduction.html\">Be careful with your disclaimers<\/a>, and make sure your industry can crowdfund.<\/p>\r\n<h2>Throw a Business Shower<\/h2>\r\n<p>Have a business shower to ask your friends, family, and potential business partners to become business investors. Here, your business ideas can shine. You can explain your business goals clearly to your audience. They may invest in your business or loan to you at a minimal interest rate.<\/p>\r\n<h2>Utilize Free or Low-Cost Resources<\/h2>\r\n<p>You must pay a lot of money upfront to start your new business. Save costs and expenses where you can and use free or low-cost resources available to entrepreneurs.<\/p>\r\n<h3>Business Development Programs<\/h3>\r\n<p>Your local area is a great place to start for free business development programs.<\/p>\r\n<ul>\r\n<li><a href=\"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/state-guide-chambers-of-commerce.html\">Chamber of Commerce<\/a><\/li>\r\n<li><a href=\"https:\/\/www.sba.gov\/local-assistance\/resource-partners\/score-business-mentoring\" target=\"_blank\" rel=\"noopener\">SCORE Business Mentoring<\/a><\/li>\r\n<li><a href=\"https:\/\/www.sba.gov\/local-assistance\/resource-partners\/small-business-development-centers-sbdc\" target=\"_blank\" rel=\"noopener\">Small Business Development Centers<\/a>&nbsp;sponsored by the SBA<\/li>\r\n<li><a href=\"https:\/\/www.sba.gov\/local-assistance\/resource-partners\/veterans-business-outreach-center-vboc-program\" target=\"_blank\" rel=\"noopener\">Veterans Business Outreach Center<\/a><\/li>\r\n<li><a href=\"https:\/\/www.sba.gov\/local-assistance\/resource-partners\/womens-business-centers\" target=\"_blank\" rel=\"noopener\">Women&#8217;s Business Centers<\/a><\/li>\r\n<\/ul>\r\n<p>You can also use open-source software like WordPress and free online tools like Canva and Chat GPT.<\/p>\r\n<h2>Leverage Social Media<\/h2>\r\n<p>Harness the power of the internet to market your business cost-effectively. Create a professional website or utilize social media platforms to reach your target audience. LinkedIn is a great resource for business-to-business sales. Facebook and Instagram can help you connect with potential customers and generate sales leads.<\/p>\r\n<p>Anyone with a cell phone can record a video for YouTube or upload podcasts promoting yourself and your new business. Bringing on podcast guests helps expand your audience, too.<\/p>\r\n<h2>SEO and Search Engine Marketing<\/h2>\r\n<p>Integrating search engine optimization (SEO) keywords into your website copy is a free way to gain traction in your business. Here are some free tools you can use to get started:<\/p>\r\n<ul>\r\n<li>Answer The Public<\/li>\r\n<li>SEMrush<\/li>\r\n<li>SEObility<\/li>\r\n<li>Woorank<\/li>\r\n<\/ul>\r\n<p>Using SEO won&#8217;t get money to appear in your bank account, but it can get customers interested in your business to start cash flow.<\/p>\r\n<h2>Get Legal Help Finding Financing<\/h2>\r\n<p>If you&#8217;re unsure whether crowdfunding or a grant is best for you, ask for help from a local&nbsp;<a href=\"https:\/\/lawyers.findlaw.com\/business-commercial-law\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">business lawyer<\/a>.<\/p>\r\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        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