How to start a company with no capital?

. 5 min read
How to start a company with no capital?

In this era of digitalisation, everyone wants to be their boss. Starting a venture from scratch requires a lot of research, time, and investment. Most of the Quora queries start with how to start a venture with zero to low investment. Most people think it is impossible to start a business without a hefty initial investment. However, this is true in most cases but in some ways can make you a multi-billionaire business person with no investment.

One-third of small enterprises initiated with an investment of 5000 dollars and 58% of people started with less than 25000 dollars.

In this piece, you will find tips and processes to overcome business barriers without spending a single penny. This article focuses on online businesses and how to challenge your business sense to scale production.

How much money is needed to start a venture?

While you google this question and see that the ideal amount of money needed to start a venture is 3000 dollars. Let me tell you the investment in the business is always a controversial topic. As the amount is estimated it is not always necessary that your business will start growing exponentially after the investment.

The investment can range from zero to 1000 million dollars depending on the industry you want to function in, the idea, vision, knowledge, and research.

The only valid cost of initiating an enterprise is the cost of forming an LLC, it is a legal document that authorises business persons to trade their product in the market. The cost of an LLC varies from place to place, in the city prices can go up to 500 dollars, in the countryside, it can go down to 40 dollars.

While starting a business there are different prices for everything, and there are many costs that you never knew existed. Here I am dividing these expenses into three subparts.

Fixed vs Variable Costs

Fixed costs are the expenses that you need to pay for your rent, insurances, and employees' salaries, these costs need to pay even if your business closes.

Transaction fees, material costing, employee bonuses come under variable costs. It depends on how many products your business generates at the end of the month. As the business starts to see high ROI, the fixed costs remain smaller and the variable costs witness a sudden surge.

Essential vs elective costs

Essential costs are primary expenses that are needed to grow and stabilise the business. Essential costs are essential for a company's survival and development.

Optional investments are only when the company is witnessing surplus ROI.

One-time vs optional costs

One time investments are always significant as you have to expend money on machinery and other equipment to start the business.

Ongoing costs are the expenses that need to be paid on a regular interval. They tend to increase as per time.

By knowing these underlying expenses, you can manage and plan your business idea accordingly. Make sure to check all the expenses before starting a venture. Most of the people ignore the research phase and get down to minus before the business takes off.

Guidelines to launch a business with little to no capital

There are 582 million entrepreneurs globally. So, starting a business is not a modern aged idea and you will find plenty of information about every industry. However, launching a venture without capital requires some principles to be a successful business.

Here you will find everything that you require to do for making your venture successful in a certain time frame.

Initiate with what you possess

Before watching out for what you need for your business, try to take stock of what you have at your store. Consider the

  • Experience- Your experience is your greatest weapon, every work detail matters in business. The more experience you have in the field higher are the chances of success.
  • Resources- Analyse your tangible resources. What asset do you own and how much market value they incur is vital.
  • Skills- Check what extra skills do you have that can help you in driving the venture.
  • Knowledge- Analyse the depth of knowledge of your field of expertise.

Go beyond these points and think about what more do you have that can be your primary weapon to start the business. Make sure to make a list of what you own be it a personality trait or a skill. Your responses will help you to construct a foolproof plan for your business.

Dig contacts for impactful launching

If you are connected to influential people of your society. It's time to reconnect as the power of you is based on the people you know. As the first batch of consumers will always be the people who you know. Take account of all the people you know, make a list of people who can help you connect to your probable prospects. Map out all the connections and see whom to connect for more scaling up your brand endorsement.

Invest according to your current financial status

Most people invest in thrice the amount of money they have by taking loans and mortgaging assets. This business practice should be discarded as if you lose your business you will lose the money and will get bankrupt in no time.

If you invest an amount that you are okay to lose, you bring flexibility and stability to the business. However, if you only think of investing at the right time you will never leap and will lose your dream.

3 ways to start your online business without investment


Launching a service-oriented venture is a simple process, as you have to provide services to your consumers and then gain capital out of it. A product-based business requires a lot of planning and proper execution. As you don't have funds to start a product-based venture, start by providing services, collect the funds for launching products, and start the business. In 2015, startups created more than two million jobs in the United States.


In the beginning, every business looks impossible. The first few months go down to check the production and how to market the product. You might not receive a paycheck in the initial stages but by keeping the efforts consistent you can make your impact on the market. Once people get acquainted with your product, you can easily sell your commodity.


Funding sources are everywhere you just need to be a little creative to catch it. Traditional business ethics advise sticking with a single thing at a time. However tough times demand special measures. If you are facing a problem in collecting funds then make sure to find a way to use current resources profitably.

Get a credit line to prevent bankruptcy. It is common for a business person to rely on credit to function a business. To prevent your business make sure to keep your purchases minimum.


Most businesses lead to failure because of low return on investment. The more you have invested in a budding business the more it is likely to get complicated. As the initial days of setup are often exhausting and due to no experience, the management of finance suffers a lot. In 2016, 69% of all US entrepreneurs started their business at home.

So make sure to proper planning before jumping on to the business boat. Thorough research is a must before deciding on an idea, make sure to analyse your market competitors.

Also read:

What are the Best Ways to Think of Ideas for a Startup?
What Is the Best Advice for a Young, First-Time Start-Up CEO?
What is the perfect startup team? Importance, Tips & more
What Would be a Good Government Policy to Encourage the Growth of Small Businesses?