How to Start a Business With No Money: A Step-by-Step Guide

Before WhatsApp was a household name, co-founder Jan Koum was living on food stamps, teaching himself to code. And Airbnb? That billion-dollar idea began with two broke art school grads and a couple of air mattresses on the floor.

These businesses didn’t start with money. They started with a problem and a scrappy way to solve it.

Feeling inspired to do the same? This guide shows you how to start a business with no money—and the free tools that will help you along the way.

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Best business ideas you can start with no money.

Like Airbnb, some of the best businesses start with little to no money. Just your skills, some hustle, and a solid internet connection. Here are a few ideas to help you explore business models that require minimal investment.

Service-based businesses

Scroll through social media and you’ll see it: people turning unexpected skills into full-blown businesses. Like the personal trainer who turned fitness tips into a thriving online coaching business. Or the stay-at-home mom posting cleaning time-lapses now running a full-fledged cleaning business. These service-based businesses tap into personal skills and time—a smart and cost-effective option for new entrepreneurs.

Here are a few low-cost start-up businesses you could start today:

• Dog walking
• House cleaning or organization
• Tutoring
• Freelance writing or design
• Virtual assistance
• Pet sitting
• Personal shopping or closet clean-outs
• Social media management
• Lawn care or snow shoveling
• Event planning or coordination
• Photography for local events
• Babysitting or nannying
• Online fitness coaching
• Translation services

Online businesses

Starting a business from home with no money? Online is the way to go. There’s no rent, no commute, and no pesky coworkers. Here are some online business ideas with minimal startup costs:

• Sell digital products: Think templates, ebooks, printables, or Notion setups. Create them once, then sell them again and again.
• Coaching or online courses: Share your expertise through 1:1 sessions or recorded lessons.
• Affiliate marketing: Recommend products you love and earn when people buy through your links.
• Start a blog or YouTube channel: Build an audience around a niche and monetize with ads, sponsors, or your own offers.
• Dropshipping or low-inventory e-commerce: Sell physical products without ever handling inventory. A supplier ships directly to customers.

While these businesses take time to grow, the startup costs are close to zero. And the best part? You can build it all from your couch, in sweatpants, with your dog as your ever-distracted intern.

Local businesses

Local businesses are built on what people need right now. Think chores, quick services, or anything that saves time and effort.

Here are a few local businesses you could start in your community:

• House sitting
• Personal shopping or closet clean-outs
• Window washing
• Holiday decorating services
• Local tour guide for visitors
• Garage cleanouts or junk removal
• Kids’ birthday party entertainment
• Errand running or grocery shopping
• Handyman services
• Grocery or meal prep assistance
• Car detailing or washing

Most people want to support local businesses. All it takes is one client to get started. Show up, do great work, and the referrals will follow.

How to start a business with no money: your step-by-step guide. 

Starting a business with no money might sound impossible, but it’s more doable than you think. With the right mindset and a clear business plan, you can turn your ideas into reality without breaking the bank. Here’s your step-by-step guide to getting started.

How to find a business idea that actually sticks

Before you launch your dream business, you’ve got to start with something crucial: the right idea. One that you’re excited about—and one that people will actually pay you for.

Sound overwhelming? It doesn’t have to be. Here’s how to find a business idea that gets you fired up and fills a real market need:

• Start with what lights you up: What are you obsessed with? What problems do you actually care about solving? Your passion is fuel. Love fitness? Think about launching an online coaching program or selling digital workout plans. Into DIY? Maybe there’s room to create a niche ecommerce shop for your favorite tools or crafts.
• Do your homework: Look into market trends, search behavior, and customer needs. Tools like Google Trends or Keyword Planner can help you spot what people are actively searching for. That’s where you’ll find business ideas that already have demand waiting for a solution.
• Mine online platforms for insights: Sometimes the best ideas come from just watching what’s happening around you. Social media, Reddit threads, Facebook groups, or even TikTok trends can help you see what’s hot—and where people are struggling. That’s your opportunity.
• Talk to real people: Get out of your head and into the world. Talk to potential customers, industry peers, or even other small business owners. Ask them what’s missing, what annoys them, or what they wish existed. Pain points = business opportunities.
• Brainstorm (but don’t overthink it): Take an hour to dump every business idea you can think of onto a page—no judgment, no filtering. You’ll be surprised how many good ideas come out when you stop trying to find the “perfect” one. Later, you can narrow them down based on what’s profitable, sustainable, and actually fun for you to run.

Step 2: Use your existing skills & resources.

Instead of focusing on what you don’t have, start with what you do. Your skills, your network, your laptop, your car. These are your tools.

To figure out where you can add value, ask yourself:

• What do people already come to me for? Maybe you're the go-to essay editor, the friend who always plans the best trips, or the person everyone asks for home organization tips.
• What am I good at that others avoid? It could be tech, problem-solving, or simplifying complicated tasks.
• What can I offer that actually solves a problem? Think of the everyday tasks people struggle with, like running errands, pet care, or organizing their space.

The answers? That’s your first offer.

Step 3: Start with free business tools.

Free tools can take you further than you’d think. Most solo business owners use them long before they ever pay for upgrades, and some stick with them for years.

Here are a few worth having in your toolkit:

• Business plan templates: Use a free business plan template to guide your planning process and clarify your business ideas.
• Canva: Design anything—logos, social posts, flyers—no design skills needed.
• Wave: Track income, expenses, and send invoices.
• MailerLite: Build an email list and stay connected with customers.
• Google Analytics and Google Trends: See what people are searching for and how they interact with your site.
• SurveyMonkey: Collect quick, useful feedback from real people.

These free plans are more than enough to get started and flexible enough to grow with your business. So, start small, keep it lean, and add more only when it makes sense.

Step 4: Planning your business and setting yourself up for success

Got a business idea you’re excited about? Great. Now it’s time to turn that idea into something real—and that starts with a solid plan.

No need to overcomplicate it. Planning your business just means getting clear on what you’re doing, who it’s for, and how you’ll make money. Here’s how to lay the foundation:

• Clarify your mission and vision: Your mission statement = what your business does and why it exists. Your vision statement = where you’re going and what success looks like long-term. These two things keep you grounded and focused as you grow.
• Get to know your market: Take time to understand your ideal customer’s needs, pain points, and behaviors. The better you know your audience, the better you can build products or services that solve real problems and stand out.
• Build a business plan (that you’ll actually use): No 50-page documents here—just a plan that covers:

• What you’re selling
• Who it’s for
• How you’ll market it
• How you’ll make money
• What it’ll cost to get started and run
• Who’s helping you (even if it’s just you for now)

This becomes your business roadmap—and yes, it’s helpful even if you’re not pitching to investors.

• Define your business model: In simple terms—how will you make money? Are you selling digital products? Offering services? Running a subscription? Laying this out clearly helps you stay focused and avoid chasing ideas that don’t serve your core business.
• Create a marketing plan: Even the best ideas need visibility. The most successful businesses in the world tend to have something in common: a rock-solid brand. 

Figure out how you’ll reach your audience—whether that’s through social media, email marketing, SEO, local events, or partnerships. (Spoiler: it’ll probably be a mix.)

Step 5: Get your first customers without spending money.

Minimize marketing overwhelm by keeping it simple when you're starting out. Focus on easy, cost-effective strategies like:

• Posting in relevant Facebook groups, Reddit threads, or Instagram stories. Don’t underestimate the power of social media marketing for reaching potential customers.
• Asking friends and family to spread the word
• Offering a discount in exchange for honest feedback
• Reaching out via DMs to introduce what you’re offering

The first sale is the hardest, but once you get going, it gets easier.

Step 6: Reinvest earnings back into your business.

It’s tempting to pocket your first few sales, but those early dollars can fuel your growth. Put them to work by:

• Upgrading your tools or subscriptions
• Improving your logo or website design
• Testing small ads or promotions
• Setting aside a cash buffer for slower months
• Hiring freelancers for specialized tasks (design, copywriting, etc.)
• Investing in professional branding or photos
• Building a content strategy or growing your email list
• Upgrading your workspace or equipment

Investing wisely now can set you up for bigger success down the road—so do yourself a favor and resist the urge to splurge!

How to fund your business without taking on debt.

Building something great doesn’t have to involve maxed-out credit cards or taking out a loan. We’re not talking about traditional business models that require significant upfront investment either. 

We’re talking about strategies that can help you build a business while minimizing initial costs. Here’s how to keep finances clean and stress low:

Bootstrap your business.

Bootstrapping is one of the smartest ways to launch a business with no money. Start small, keep costs low, and reinvest your earnings back into the business. For instance, after making your first few sales, you might invest in tools to automate tasks or upgrade your website for a better customer experience.

Creating a strategic or operational plan helps keep your priorities in order as you grow. It doesn’t have to be complicated—just a simple way to prioritize tasks, plan for busy and slow times, and set up systems to support your growth. 

Grants & business funding

Free money exists, but you have to know where to look. Here are some places to check out for small business grants and funding opportunities:

• Local economic development offices: Many areas offer grants and resources for businesses to help boost local economies. 
• Government programs for new or underrepresented founders: The U.S. Small Business Administration (SBA) offers specific funding programs to support underrepresented founders, including veterans, women, and BIPOC founders.
• Small business grants: Grants.gov lists a wide range of opportunities that can give you the financial boost you need.
• Venture capitalists: If you’re building something with big growth potential, you might consider pitching to venture capitalists (VCs). These are investors who fund startups they believe can scale fast—and they usually come with expertise, networking opportunities, and mentorship (alongside the cash).

Just know that VC funding typically comes with equity trade-offs, meaning you’re giving up a slice of your business. It’s not for everyone, but if your business model is built to grow quickly and you’re ready to pitch, VCs can open serious doors.

• Industry-specific funds or competitions: Many industries offer specialized grants or competitions to help businesses grow. Be on the lookout for programs tailored to your niche.

It might take some digging, but landing a grant can provide the financial support you need to fuel your next move. 

Partner with co-founders or barter services.

Two heads (and skillsets) are often better than one, especially when those skills are complementary. Freelance copywriters and designers, for example, often work side by side because one service naturally supports the other. 

Not ready for a full partnership? Barter. Trade your skills for what you need. Need a website? Offer a month of free bookkeeping in return. It’s not just about cutting costs, it’s about building relationships that move your business forward.

How to market your business for free. 

Getting noticed is crucial, but you don’t need a huge budget or a full marketing team to make it happen. With the right free tools and a bit of consistency, you can build awareness, earn trust, and start attracting customers without spending a dime. Here’s how:

Leverage social media marketing

Your audience is already out there—whether it’s on TikTok, Instagram, or LinkedIn. Start by showing up and sharing what you're working on. Give people a sneak peek of what you’re building by:

• Sharing before-and-afters
• Talking about your process
• Showing happy customers (with permission)
• Using relevant hashtags to reach the right crowd

Engage in online communities.

Find where your audience is gathering—whether it’s Facebook groups, Slack channels, or subreddits—and become a valuable presence. Offer advice, answer questions, and stay active. The more you help, the more likely people will turn to you when they need your services.

• Share your expertise: Solve problems and offer insights that build trust.
• Build relationships: Connect with like-minded people, and collaborations or referrals may follow.
• Provide valuable resources: Offer free guides, templates, or tools that your audience can use.
• Stay visible: Engage consistently, not just when you have something to promote, to show you're genuinely invested.

Use email marketing

Email lists are gold. They’re personal, targeted, and—best of all—you actually own them (unlike your social feed). Not sure what to share? Keep it useful and engaging:

• Updates: Share new products, services, or features.
• Behind-the-scenes moments: Give your subscribers a glimpse of the real side of your business.
• Exclusive offers: Give early access to discounts, sales, or special promotions.
• Helpful tips: Share advice, resources, or insights that solve problems your audience faces.
  
  

The goal is to keep it light, relevant, and valuable—like a friend sharing something useful. 

Try content marketing

SEO helps people find your business online, and content is key to getting noticed. Think blog posts, short videos, or quick how-to guides that highlight what you do.

For instance, if you’re a personal trainer, a blog post like “5 Quick Workouts to Try at Home” can attract people looking for at-home fitness solutions and guide them to your services.

Content like this not only builds trust but also improves your visibility over time, driving more clients, sales, and opportunities for growth.

Partnerships & collaborations

Partnering with another small business is a great way to reach new customers without starting from scratch. Look for a business that serves a similar audience but offers something different.

For example, a dog walker could team up with a local pet groomer to offer a “Fresh & Fit” package—combining walks with a grooming session. Both businesses promote it to their customers, expanding their reach and driving new clients. 

Final thoughts: start small, stay scrappy, and grow smart.

Starting a business with no money sounds hard, but people are doing it every day, with what they already have. Your skills, your time, your resourcefulness? That’s your startup capital.

When you're ready to make the day-to-day easier, Homebase has free tools for scheduling, payroll, hiring, and more—all in one place. 

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FAQs about starting a business with no money.

What’s the easiest business to start with no money?

Service-based businesses are usually the quickest to get off the ground. Think tutoring, cleaning, freelance work, or virtual assistance. Anything where you can offer a skill without investing in products or equipment upfront.

Exploring various low-cost business ventures can help you find affordable business ideas that require little to no initial investment.

What’s the cheapest business to start?

Online businesses typically have the lowest overhead. Selling digital products, affiliate marketing, or content creation can all be done with just a laptop and an internet connection. 

Can I start a business with no money and no experience?

Yes. Start with what you do know, and learn the rest as you go. Free courses, YouTube tutorials, and business communities can teach you everything from pricing to marketing.

How long does it take to make money from a new business?

It depends on what you’re offering, how you price it, and how much time you can put in. Some see results in weeks, others in months. The important thing is to stay organized, keep things simple, and keep moving forward.