7 Ways to Start Business Without Money for New Entrepreneurs

Start business without money may seem daunting, but it’s entirely possible with the right strategy, creativity, and resourcefulness. In this article, NextSky provides a detailed roadmap to launch a business without capital, drawing on proven business models and insights from successful entrepreneurs.

5 low-cost business models to start with no money

Specific business models require minimal capital, leveraging your time, skills, and internet access. Below are five models validated by experts in e-commerce and digital solutions:

1. Dropshipping

Dropshipping is an online business model that lets you sell products without holding inventory or investing significant upfront capital. When an order arrives, the supplier ships directly to the customer, saving you costs, reducing risks, and making it easy to start. Platforms like Shopify make setting up an online store quick and seamless.

How to start:

• Use tools like Spocket or Oberlo to find trending products.
• Research high-demand niches on social media, like TikTok (search hashtags like #tiktokmademebuyit).
• Create a basic Shopify store and promote products via free social media channels.

Example: Kamil Sattar, a guest on the Shopify Masters podcast, scaled a dropshipping business by sourcing low-cost, trending products and using organic TikTok marketing.

Read more:

Successful Business Plan with the Secret from A to Z

What is Dropshipping? Everything You Need to Know

2. Print-on-demand (POD)

Print-on-demand allows you to create custom designs on products like t-shirts, mugs, or phone cases, produced only when ordered. This eliminates inventory costs, letting you test new ideas with minimal financial risk. Shopify integrates directly with apps like Printful or Printify, streamlining the process.

How to start:

• Use free design tools like Canva to create unique graphics.
• Set up a Shopify store and connect with a POD supplier.
• Promote products through social media or a personal blog to reach customers.

Example: Katheriin Liibert, founder of #muhoov, started with zero cost using POD and quickly validated her fashion designs in the market.

3. Service-based business

If you have specialized skills, a service-based business is an ideal way to start with virtually no capital, as you sell your time and expertise rather than physical products.

How to start:

• Create a professional profile on free platforms like Upwork, Fiverr, or LinkedIn.
• Leverage existing relationships to land your first clients.
• Use free tools like Google Workspace for communication, task management, and scheduling.

Example: Kei Nishida, founder of Japanese Green Tea Co., began by offering consulting services based on his expertise, reinvesting profits to grow into a robust business.

4. Digital products

Digital products like eBooks, online courses, or templates offer significant advantages. You create them once and can sell them indefinitely to multiple customers without storage, printing, or shipping costs. This is an innovative, scalable model for long-term income.

How to start:

• Identify a niche where you have expertise (e.g., fitness, finance, design).
• Free tools like Canva or Google Docs can be used to create products.
• Sell via platforms like Shopify’s Digital Downloads app or Gumroad.

Example: A photographer can create Lightroom presets, made once and sold to thousands globally through a Shopify store.

Read more: Can You Sell Digital Products on Shopify? Beginner’s Guide

5. Handmade products

If you’re skilled in crafting jewelry, candles, or art, you can sell handmade products with minimal investment by starting small or repurposing materials. You can scale as demand grows.

How to start:

• Create a small batch of products and sell on Etsy or a Shopify store.
• Use social media to showcase your work and build a following.

Example: Kristen Pumphrey of P.F. Candle Co. started making candles in her apartment with affordable materials to test demand before scaling up.

7 steps to start a business with no capital

1. Build a lean business plan

A lean business plan helps you define goals, target markets, and strategies while optimizing costs and resources. Its strength lies in simplicity, flexibility, and focus on what truly matters to grow your idea.

• Use free templates from SCORE or Shopify to create a concise, one-page plan.
• Clearly outline your unique value proposition, target customer segment, and revenue streams.
• Anticipate challenges like cash flow or market competition and plan specific solutions.

Pro tip: Focus on short-term goals to quickly validate your idea’s feasibility before committing to long-term strategies. This reduces risk, optimizes costs, and boosts chances of success.

Read more: Top 10+ Best Business Ideas to Start with $10K for Startup

2. Validate your idea with pre-orders

Test your business idea without spending much by focusing on pre-orders or crowdfunding. This is a great way to confirm market demand and secure initial funding.

How to do it:

• Build a landing page on Shopify or Wix to showcase your product or service, making it clear and engaging.
• Run campaigns on Kickstarter or Indiegogo to gauge community interest and raise funds before mass production.
• Share your idea on Instagram, Facebook, or TikTok and collect pre-orders via payment platforms like PayPal or Stripe.

Example: Remi Martins, founder of Regirl, used Instagram to test her wig business idea. Within 60 days, she secured 50 pre-orders, confidently investing in inventory without excess stock risks.

3. Leverage free or low-cost tools

Use free or affordable tools to build and run your business efficiently. Here are some useful options:

• Website building: Shopify’s free trial, Wix, or WordPress.com are great for creating a basic, professional website.
• Graphic design: Canva lets you create logos, social media visuals, and product mockups quickly and beautifully.
• Communication and collaboration: Google Workspace offers professional email and document management for smooth teamwork.
• Social media marketing: Hootsuite or Buffer allows scheduling and managing posts, saving time while maintaining consistent marketing.

Pro tip: Explore free trials of premium tools, but cancel before they expire if unnecessary to avoid unexpected costs.

Read more: How to Start a Business in 14 Simple Steps to Success

4. Build a community and network

Connecting with other entrepreneurs and potential customers provides valuable advice and free promotion opportunities.

How to do it:

• Join online communities like r/Entrepreneur on Reddit or LinkedIn, which are industry groups, to share knowledge and build relationships.
• Attend free webinars or local networking events hosted by SCORE or small business development centers to meet like-minded individuals.
• Find a mentor through platforms like MicroMentor for personalized guidance and practical advice tailored to your business.

Example: Francois Mathieu, founder of Hojicha Co., leveraged his network to learn cost-saving strategies from experienced entrepreneurs, fostering sustainable growth.

5. Focus on organic marketing

Organic marketing through social media and engaging content is a cost-effective way to expand reach and connect with your target audience. Instead of paid ads, create lasting value with compelling content.

• Create posts on TikTok, Instagram, or LinkedIn to showcase your product, service, and brand value. Content should be vibrant, memorable, and platform-specific.
• Use free tools like Ubersuggest to find high-potential keywords, helping your blog or posts rank higher in searches for organic traffic.
• Actively respond to comments, join relevant online groups, and engage in conversations to build lasting relationships with followers.

Pro tip: Post consistently and blend storytelling, your brand’s story or customer experiences to create emotional connections that make your audience remember you.

6. Start as a side hustle

You don’t need to quit your day job to start a business. Launching as a side hustle lets you maintain financial stability while testing and validating your idea.

• Dedicate evenings or weekends to developing your business while keeping your primary job.
• Reinvest initial profits into marketing, product upgrades, or expansion for sustainable growth.
• Review your company’s policies to ensure your side hustle doesn’t violate non-compete or work-hour agreements.

Example: Harry Doull, founder of Keap Candles, started his business as a side hustle. He used crowdfunding campaigns to grow his brand while maintaining a full-time job and building a strong foundation.

7. Explore funding options for growth

Once your business gains traction, reinvesting profits or seeking external funding is the next step to scale. Consider these options:

• Shopify Capital: Tailored for Shopify sellers, this program offers loans to invest in inventory or marketing, boosting revenue quickly.
• Crowdfunding: Platforms like Kickstarter let you raise funds from the community in exchange for early products or services, building capital and loyal customers.
• Grants: Research industry-specific or local grants that offer non-repayable financial support, especially for small businesses.
• Friends and family: If borrowing or raising funds from loved ones, ensure clear terms to maintain good relationships and protect both parties’ interests.

Example: Alicia Ho, owner of Precious Ones Photography, scaled her business with a loan from a local nonprofit after proving demand and growth potential.

Cost management tips for startups with no capital

Starting with no capital requires savvy cost control. Here are practical strategies to keep your startup lean and efficient:

• Create a detailed budget: Track every expense using free tools like Google Sheets or Wave to manage cash flow and avoid overspending.
• Barter services: Trade your skills for needed services instead of paying cash. For example, offer marketing expertise for accounting or design support.
• Compare prices: Research multiple sources before purchasing materials or services to find cost-effective, high-quality options.
• Use free resources: Access free business books, webinars, plan templates, or management tools through public libraries or online platforms.
• Validate before investing: Test initial orders or create a minimum viable product (MVP) to gauge market demand, avoiding wasteful spending and focusing on what works.

By applying these strategies, your startup can operate flexibly, minimize costs, and increase success chances even with no initial capital.

Starting a business without money is a worthwhile pursuit in 2025. With NextSky’s insights above, you can turn your idea into reality without draining your budget.