How to Start a Business with No Money

You don't have to be rich to start a company. The key is to think creatively. There are several ways you can start a business for free.

Don't Pay for Supplies or Equipment

Start by making a list of the things you would typically need to start your business. In some instances you can borrow the tools or equipment you need, finance them by credit card or better yet - have them supplied by the customer.

For instance, let's say you want to start a cleaning business with no money. Many customers have a vacuum, mop and cleaning products you can use. In fact, many people prefer that you use their supplies because they like certain products better than others or they have allergies or want to eco-friendly cleaners.

If you want to start a business walking dogs, pet owners are most likely going to have a leash and pet treats. The same goes for in-home pet care. Normally you don't have to bring pet toys, pet food or bedding.

How about starting a business mowing lawns? Some homeowners have their own lawnmowers and simply want someone else to do the work - but what if they don't have the equipment you need? One option is to finance a new lawn mower on your credit card at your local home improvement store. You can likely pay that money back after just a couple of weeks mowing lawns for clients.

But what if you don't have a credit card? Think about who you know that has a lawnmower. Set up an arrangement where you can borrow the mower for a few weeks until you have earned enough money to buy your own equipment. Give your friend an incentive to let you borrow their gear by offering to pay them a percentage of the money you earn using their mower - or by giving their mower a free tune up. This type of borrowing arrangement can work for all sorts of equipment and many types of businesses.

Don't Pay for Services

For tasks that you would normally pay someone for, do them yourself. Many business owners pay for advertising, hire a bookkeeper, etc.. However, there is no reason you can't take them on yourself when you are starting out. Once your business starts to grow, you may have less time to manage these tasks, so at that point you will have the money to pay for someone else to handle them.

You can get free advertising by:

• Writing a press release to your local newspaper about the opening of your business. This can be surprisingly simple, yet be a very effective way to find lots of new customers quickly.
  
  
• Donating your time and service to charity events to help spread the word about your company. This is an effective, low-pressure way to network with lots of active community members and business people - while at the same time demonstrating your skills and workmanship. Your network can be a great source of both clients and referrals.
  
  
• Partnering with similar local businesses to refer customers to each other. For example, a dog walker may partner with a pet shop owner or kennel. A yard maintenance service could partner with a real estate agent or gardening supply store. If you want referrals but don't think you will be able to equally reciprocate the favor, consider offering a generous referral fee to partners for new clients they send you. It's a win-win.
  
  
• Using freelance websites online to post your services and connect with clients (like Freelancer.com, oDesk.com and PeoplePerHour.com). If you are in the teaching field, you can list your classes for free on a website called SkillShare.com. MerchantCircle.com is another free resource that merchants can use to advertise their services to the local community.
  
  
• Register with local online directories to to reach shoppers who are looking for products and services using their computers, smartphones and tablets. And don't forget a free company listing in your local yellow pages.

Don't Pay for Overhead

Sure, a retail storefront or office is nice to have, but it costs money. Many entrepreneurs on a budget are turning to home-based businesses or online businesses because they don't have to incur the expense of renting office space. Some businesses can not be run from home, of course, but many can. Lots of service businesses like cleaning, dog walking, yard maintenance and errand running require the business to go to the location of the client anyway. These don't even need a storefront.

Before starting a home-based business, check with your city on local zoning laws. Many online businesses can easily by run from home. However, businesses that require lots of clients to visit the home, create noise or additional street traffic can be a disturbance to the neighborhood and therefore restricted by the city.

The key thing to remember when you starting a business with no money is to start small. You can always invest in more supplies and better equipment as you grow your company and generate money. By thinking "on a budget", you will also develop some great frugal habits which can help you make more money throughout the entire life of your business.