What Are the Different Ways to Start a Business without Capital?

Esther Ejim

There are methods that aspiring entrepreneurs can apply in order to start a business without capital, even if it seems like something that may be hard to achieve. The assumption that it may be hard to start a business without capital is a valid one, because capital is the lifeblood of any business since it is needed for a lot of the processes required to establish and sustain the business. This is why inventive measures have to be applied toward the start-up process when capital is an issue. Some of the acts that can help an aspiring entrepreneur start a business without capital include choosing the right kind of business, looking for alternative forms of raising money, cutting any unnecessary costs, and having a determination to succeed against expected odds.

A startup company may prepare an investment proposal in order to attract investors and secure funds.
A startup company may prepare an investment proposal in order to attract investors and secure funds.

When capital is an issue during an attempt to start a business, the aspiring entrepreneur should look for the kinds of businesses that require little initial capital to start. Most of the businesses that require little to no capital to begin are those kinds of businesses that are service-oriented. Such businesses usually only require the skills of the entrepreneur and little else. For instance, someone who wants to open a beauty shop, but lacks the necessary capital to rent a place, buy equipment, obtain the necessary registration, and other initial costs might decide to start small. This person could start by performing beauty-related service for family and friends for a small fee, building a reputation along the way and also saving money that might be used as capital.

The same concept might be applied by someone who wants to start an auto mechanic workshop; this person could also fix the cars of friends and family for a fee, while building his or her portfolio and saving money. Another method for starting a business without capital is also related to starting small. This process is the free advertising the entrepreneur gets from satisfied customers who refer such a person to other friends and associates, helping the person advertise the business. Promotion is part of the expenses that a new business needs to address using the startup capital. Since capital is an issue, the word-of-mouth promotion by satisfied customers goes a long way toward helping the business take off without capital.

An entrepreneur desirous of starting a business without capital must also be inventive and creative in the drive to raise money for the business. This includes looking for alternate sources of funds, such as through family or through the application of cost-cutting measures, while the business is still a concept. For instance, if some parts of the business concept calls for renting an office space, the entrepreneur could compensate for the lack of capital to accomplish this by converting the garage or a part of the house for business use.

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