How to Start a Business with No Money

February 4th 2026

Although we’ve all heard that “it takes money to make money,” which is valid when we’re talking about forms of investing, it doesn’t actually apply to starting a business. It is possible to start a new business without any money.

The U.S. Small Business Administration’s (SBA) Office of Advocacy found that nearly one-third of small businesses were started with no cash. None.

Which means that you have a shot at success, too.

Granted, if you don’t have money, you will need some other type of resource to leverage, but it doesn’t have to be a physical thing. Your available resources can be time and/or expertise. Your talents are an asset you can convert into a business.

Tap into free tools

No matter what type of business you aspire to start, there is a long list of potential online tools you can use to get up and running. These include:

• Social media. Odds are good you already have social media accounts that you use to keep in touch with friends and colleagues. You may want to create new ones specifically for your new venture to attract potential customers. And don’t discount YouTube as a way to share educational content that builds trust with your audience.
• Email marketing. Kit has a free tier to help you build a list even before you officially launch, if you want.
  Website builders. Many platforms now exist that help you design and launch a business website through WordPress, Wix, Squarespace, and others.
• Graphic design. Whether for your website or social media posts, Canva can be invaluable. Use it to create lead magnets, landing pages, direct mail pieces, and other assets for your business.
• Business management. There are also free tools to help you manage your workload, such as Trello and Asana, process accounting through Wave, and store files via Google Docs and Sheets. If you feel like you need startup guidance, you can also find free instruction through educational sites online. The Service Corps of Retired Executives (SCORE) is a great starting point.

Trade for what you need

In addition to using as many free tools as possible to set up and operate your business, consider trading for products and services you need for which you can’t find a free option.

There are formal trade exchanges set up to facilitate barter deals between companies, such as ITEX. After joining a trade exchange, you have the opportunity to sell to other member companies in exchange for trade dollars, which you can then spend with other members. Trade exchanges can be a great way to offload excess inventory or drum up new business.

However, you don’t necessarily have to join a barter network in order to negotiate a trade of goods and services. If there is something you need in order to run your business, inquire about an even exchange of products and services. For example, you might offer to supply catered lunches at a downtown law firm 10 times in exchange for the draft of a customer contract, or provide web design services in exchange for a new laser printer.

Identify what it is you need and then approach potential providers to inquire about their need for your company’s offerings. By bartering for what you need or relying on free tools to support your business-building activities, at some point, you’ll need to choose a type of business to start. You may already know exactly what you want to do, but if not, here are some potential approaches to becoming an entrepreneur without a lot of cash.

Build a service-based business on your skills

If you’re looking to start a business and haven’t yet settled on an idea, the easiest businesses to start sans cash are those that don’t involve products. That is, service businesses.

Some of the most popular include:

• Consulting
• Freelance gigs
• Coaching
• Tutoring
• Home-focused services (pet sitting, cleaning, organizing, lawn care)

Service-based businesses can be successful without a start-up fund because you don’t need inventory, you don’t need a workspace beyond your kitchen table, and you can begin marketing your offerings via social media at no cost. The one thing you will need, however, is access to a computer or phone. Fortunately, many libraries provide free computer access if you currently lack one.

Take pre-orders for a product-based business

On the other hand, if you have access to a product you love or have created, one way to sell it without investing in raw materials or inventory is to collect pre-orders.

Much like Amazon does when it announces that a book is coming out next month and then allows you to place your order in advance, pre-orders can serve as part market research—confirming that there is sufficient demand to warrant actually producing your widget—to signal whether you have a profitable product or not.

You can also require a deposit to start work, as many businesses do. That deposit should cover the cost of any raw materials or production, so that you don’t have to put up your own money.

Some entrepreneurs turn to crowdfunding sites like Kickstarter and Indiegogo to request support in exchange for early access or some other reward for their investment in their business idea.

Get started

The truth is that money is not the barrier to entry you may have made it out to be. There are workarounds. The biggest obstacle right now is action.

You’re going to need to do it scared. Take your first step, even if it’s just to test your market and prove there is interest in your business concept. Once you have validation that your business could succeed, take another step, such as setting up social media accounts to connect with prospects.

You do not have to go all-in immediately, but at least get started. You don’t need money to do that.