Starting a Business When You Don’t Have Much Money

Naturally, when you don’t have the funds to start a business, it can be a good idea to choose a business that doesn’t require much upfront money. There are many business types that don’t require a lot of money to get off the ground. Your skills and knowledge will factor into what you’re comfortable getting started with. Otherwise, you might have to acquire training before starting the business. You might be able to find low-cost or free training courses rather than investing in a new degree.

Some examples of business types that are generally low cost include, but are not limited to:

• Freelance writing or design
• Social media consulting
• Photography
• Music lessons
• Personal chef or meal planning
• Security consultant

If the type of business you want to start requires more financing, you can potentially find it from a variety of different means. The most obvious is a small business loan from your bank, but other potential funding options include:

If you don’t have much money to start a business, chances are you are already relying on your existing income. Don’t abandon that until you’re ready. Consider starting your new business as a side hustle that you can work at in your spare time so you can count on the steady paycheck from your day job. Typically, a successful side hustle is related to something that interests you so that you will stay motivated to get it started. Come up with a business plan, know the competition that you’re up agains, and schedule dedicated time throughout your week to make significant progress.  

Networking can prove incredibly useful when you’re short of funds. Not only can you meet potential investors, but you can also learn a lot.

“Sometimes, it’s not what you know but who you know,’ says Anna Baluch at Forbes. “If you’d like to start a business with no money, network, network and network. Build connections with industry professionals, potential investors, and other entrepreneurs. They can share meaningful advice, introduce you to others who can help you, promote your offerings to their customer base and even provide you with funding. You may network online or attend networking events in your local community. It’s also a good idea to look for conferences and trade shows related to your industry.”

The best thing you can do is to start saving money. Set up a savings account that is dedicated to your business venture, and save as much as you can every time you get paid. Look for personal expenses that you can reduce or eliminate and budget your paychecks.

Even though you might not have a lot of money right now does not mean that you won’t be able to start a business. Determine what type of business you want to start, write a business plan, and figure out how much you need. Then explore your options.