How to start a business with no money
Starting a business doesn’t always require huge amounts of money. Here are the best ways to get your company up and running without cash.
If you want to be your own boss but you’ve got no start-up cash, don’t panic. Plenty of self-employed roles require little or no capital to get going.
Equally, if you’ve got an amazing business idea and need money to get it off the ground, there are lots of ways to get funding. Here’s everything you need to know.
Key takeaways
You can start a business with little or no money by choosing a low-cost idea, using free tools and keeping your early plans simple
Focus on making your first sales before you spend on branding, equipment or premises
A clear budget helps you spot essential costs, avoid unnecessary spending and decide when you may need funding
Businesses that have little or no start-up costs
Services not products
Many self-employed professions don’t require much cash in the early days, particularly if you plan to offer a service rather than sell a product.
However, most of these jobs require a specific skill set. Think about your current and past roles and what experience you have to offer.
Your existing skills could allow you to set up as a freelancer or consultant at little to no cost. If you don’t have the right expertise, consider retraining to move into your chosen industry.
Examples of service businesses with low start-up costs include:
Graphic design
Virtual assistants
Bookkeeping
Consultancy
AI prompt writing or AI workflow setup
Email marketing
Search engine optimisation (SEO) support
Video editing for short-form content
Content repurposing for TikTok, Instagram and YouTube Shorts
CV and LinkedIn profile writing
Grant or funding application support
Customer service support
These unsecured and secured loans could help you grow your business, cover running costs or even fund a new company.
Online or digital goods
Selling digital goods means that you don’t need raw materials. You could write e-books, sell photos, monetise a blog or social media channel, or even create online courses. Here are some examples to get you thinking:
Downloadable templates
Online courses or mini-courses
Paid newsletters
Digital planners
Stock photos or video clips
Printable worksheets
Website themes or templates
Notion, Canva or spreadsheet templates
Ebooks or guides
Audio packs, sound effects or music loops
Read more: Online business ideas to dominate the digital world
Case study: Meet Luke: the TikTok superstar turning viral fame into a cleaning revolution
Real-world services
It’s not just the digital world where you can set up a business for free. You can offer plenty of ‘real life’ services with little or no start-up costs. For instance:
Pet sitting
Dog walking
Marking exams
Tutoring
Car washing
Ironing
Cleaning
House sitting
Selling
Selling online or in person typically involves start-up costs because you need to buy the raw materials and equipment to create your product. Even if you’re reselling things you find on eBay or in charity shops, you need stock to sell.
That said, you could look into selling:
unwanted items from home
Reselling second-hand goods
handmade products
print-on-demand products
through online marketplaces
at local markets or car boot sales
However, one exception to this rule is something called dropshipping. This is when you create an online store, but orders are sent directly from the supplier to your customer.
That means you don’t have any inventory or delivery costs. Instead, you make money by designing, marketing and selling the products. Just bear in mind that dealing with customer service and out of of your hands wait times can make this challenging at times.
If you do want to make your own goods, consider taking pre-orders, which will give you the capital upfront.
Crowdfunding can be another useful tool, as it allows you to provide exclusive offers and rewards in return for people investing in your business.
Read more: Easy business ideas to start from home
Marketing and advertising
Whatever business you choose, you need customers. That means you will need a marketing and advertising plan. Don’t worry – this can also be low- or no-cost.
There are plenty of free website builders you can use when starting out, and you can invest in something more sophisticated when you start making money.
Use social media, such as Facebook, X, LinkedIn, Instagram and TikTok, to your advantage. These platforms can be a great way to get your name out there and build a fan base.
There are even Facebook groups like Lightbulb that connect entrepreneurs with the press so you can start looking for PR opportunities.
Personal recommendations and word of mouth are great ways to attract new clients. Ensure your customer service is top-notch, and get as much feedback as possible.
Read more: Low-cost business ideas with high profit potential
Tax and accounting
You can earn up to £1,000 from self-employment before you need to declare it to HMRC and pay tax. After this point, you must complete an annual self-assessment and pay income tax like any other self-employed person.
You can do this on your own for free or pay an accountant to do it for you. HMRC has loads of help available to help you manage your tax returns yourself.
Read more: How to register as self-employed in the UK
If you decide to incorporate and become a limited company, you will face set-up costs. You’ll also need to pay corporation tax and consider balancing dividends and income and paying both those taxes as well.
At that point, things become more complex, and an accountant may be able to save you more than they cost.
It's also worth noting that HMRC are moving to a new way of tax reporting for businesses and sole traders known as Making Tax Digital (MTD). This requires sending quarterly updates to HMRC through MTD compatible software and keeping digital records of income and expenditure.
If you earn £30,000 or more from a business or side hustle, MTD applies from April 2027.
Read more: Should you set up as a sole trader or limited company?
💡 Editor insight: 2 in 5 SMEs unprepared for Making Tax Digital as first filing deadline approaches
Free resources
Many free resources are available to help you start and grow your business. The following sites are good places to start:
Securing funding
If you have the perfect business idea but need money to get it off the ground, you need to find funding.
There are lots of different approaches, but they fall into three main categories:
Loans: where you borrow money and have to pay it back with interest
Grants: where you can apply for a free injection of cash if you meet the criteria
Investors: people or companies who will invest in your business, typically in return for a slice of the equity, or specific rewards and offers
Don’t give up your day job
If you’re starting a fledging business, you will likely begin with little or no profits. You need time to build a customer base and might want to reinvest any money you make to help grow your company.
One thing to consider is keeping your day job and starting your new business as a side hustle. This means you’ll have money to live on in those early years, and you can dedicate more time to your business once you know it will succeed.
Read more: Top side hustle ideas to boost your income