How to build a startup with no money?: This is a great question to begin the startup journey – often as a bootstrapping entrepreneur, we think about money being the biggest challenge. Even though it is a great constraint and the number one reason why startups fail, the thought of building a startup with no money gives rise to creativity and the spirit of entrepreneurship. It is closely linked to the hustle mentality which sets you apart and acts as a test for your perseverance skills while building a startup. In this article, we will focus on building a startup with no money. The simplest answer tells us to build a consulting company or service company which don’t require large investments. However, some business plans will demand investment to prove customer value.
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How to build a startup with no money
You can build a startup without investment. This sounds like a dream for many young entrepreneurs who want to start out with little resources. We can start with looking for free resources such as office space, mentorship and some softwares that provide free access early on. This is what I meant by the hustle mentality to keep looking for the best value for your investment. You get good at this with time, but the obvious answers point towards
- Find good accelerators and incubators – they open a network for some opportunities
- Mentors help you in identifying investment opportunities, connections with other sales etc
- Look for partnerships and equity sharing models
- Grants and competitions are a good way for some business ideas
- Crowdfunding to raise funds during early stages for consumer products.
As you can see, there are a few ideas on how you can build a startup with no money. But these options take a lot of your time. You can either save money or time. But rarely can you do both.
5 Ways to build a startup with no money
This section is about the different ways you can build a startup with zero investment.
Collaborate with other businesses: Some companies work with you to develop the initial product for a share of equity. In some cases, you might even be able to sell your services for money or a quid pro quo activity. The best route might to be to win a contract for a specific service to a company that can be productised. What I mean is – you develop a solution for a particular problem which can be further used to scale independently of the specific use case.
Grant funding: Some types of businesses such as social entrepreneurship can be eligible for grant funds. Watch out for corporate social initiatives, govt funds, competitions such as Innovate UK etc which run special programs for grant funds. You can find some leads in the incubator or accelerator networks with universities etc. – Types of Startup Accelerators for a business founder
Social Capital: The social media businesses, blogging or influencer led businesses are pivoted on your social profile. If you’re able to create a strong presence for a cause related to your business, a personal branding approach can be a great way to run a business with no money investment.
Freelancing: This used to be a great way to start a business based on an idea with zero investment. You can sell a specific skillset on online marketplaces and use this as funds for your business. This is akin to working as a consultant or a contractor for a specific project. You can make good money and use this as a route to run your startup with no money effectively.
Examples of business with Zero Investment
There are a few popular examples of businesses with no money. For most startups, I still find it beneficial to undergo the funding route since it presents multiple options. However, if you’re looking at building a business with no money, some popular examples include:
Blogging: It is easy and inexpensive to purchase a website and start blogging. However, since it is so easy to create a blog, you will face immense competition to build a suitable traffic in this field
Social Media Influencer: We talked about this in the previous segment. Instagram and TikTok have opened up avenues for influencers to make money and set up a small business. There are numerous examples of some of these individuals becoming rich. This applies to YouTube channels as well – https://www.forbes.com/sites/catherineerdly/2023/12/29/following-this-simple-influencer-strategy-can-skyrocket-your-business/
Developing online courses: With e content becoming so popular, you can produce a good quality video to help train people. Some of the websites such as udemy, coursera, LinkedIn learning help hosting such videos. Again, I would highlight that this happens to be a competitive space with large competition.
Consultancy services: These include career counselling, coaching, cv reviews, helping with statement of purpose and university applications etc. This type of business depends on selling your expertise and time for project based work. It is akin to freelancing in some ways, but less competitive since you’re depending on a specialisation.
Some other examples of businesses with no money are: Dog Walking, becoming a handy person, offering a spare room for rent, renting out your parking space etc.
