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How To Start A Business With Small Capital – Creative Business Guide

Contrary to popular belief (that starting a business requires a large amount of money) there are businesses you can start and almost succeed in it (Guaranteed) with little to no startup Capital, no inventory of any kind, no offices or a shop, no staffing, no logistics and with little to no experience whatsoever but your time and efforts.  

The internet has made it possible for anyone looking for how to start a business with small capital or no capital at all to succeed as long as you can be disciplined enough to stay consistent, all that would be required is just an internet connection, your mobile phone, and a laptop, boom like a time bomb, off you go seamlessly. 

Before we go into the nitty-gritty of how to start a business with small capital, I’d like us to discuss some important traits for you to be able to run the business successfully and profitably as well. We will also discuss the types of businesses you can start with little to know Capital. But before that, but first;



What Is A Business? 

A business is a person’s regular occupation, profession, or trade.

Business is the activity of making one’s living or making money by producing or buying and selling products (such as goods and services). It is also “any activity or enterprise entered into for profit. According to Wikipedia.


Traits Needed To Run A Successful Business. 


You’ll need more courage and ambition than the average person walking the surface of the earth. Be disciplined well enough till your goals are made manifest.


You need to stay focused on one thing or a singular business model at a time until it grows and becomes sustainable, then you can diversify or venture into a new business model.


This is needed most. It serves as an engine or powerhouse in achieving anything substantial. Your ability to show up today and again and again will give your business visibility and lead you to success.


A little bit of creativity can spice your business up for success. This will help you differentiate your business or products from the competition, giving you an edge over a competitive market. 


How To Start A Business With Small Capital

Having familiarized ourselves with what a business is and the traits needed to run a successful and profitable business. Next will be how you can actually start a business with small capital. The following are steps to starting a business with small capital.

  • Find a free business idea.
  • Write a business plan.
  • Choose a business name.
  • Launch a website.
  • Validate ideas with preorders.
  • Source funding to grow.
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1. Find A Free Business Idea

Let’s face it, the first step of starting a business is to develop an idea. If you’re unsure of what that could be, here is a simple exercise to find tons of business ideas to start. 

You might have heard the quote “Google is your best friend”. This statement is so true. So a simple Google search on creative business ideas you can start with no money will do suffice. 

Google will surprise you with a lot of ideas you never thought possible. Once you are done with this step, the next is to… 

  • Sell your services.

The simple way to start making money with your business with no money is to sell your services. You don’t have to be a guru or perfect, being better than the average person at something means you can start a business that helps them. So, start by looking at the things you know how to do better than most people. Package that skill and sell it as a service. 


2. Write A Business Plan

A business plan is like a  blueprint for how you’ll grow your business and show the steps to be taken to its accomplishment. The contents of your business will depend on the low-cost business model you’ve chosen.  Here’s what a Standard business blueprint looks like.

Company description. A general overview of the company you’re about to start, including the business model and legal structure. 

Market research. This includes demographics that your target market shares. For example, who do you sell to? Will you sell directly to the consumer or to the wholesalers? How does this compare to competitors?

Products and services. You’ll make money by selling one of these. Explain what the product or service is and why people will buy it.

Marketing strategy. Explain how you intend to promote your business to reach your target audience, be that through social media, advertising, email marketing may be a physical location.

Logistics and operational plan. This has to go with how you intend to get your product or service into the hands of your paying customers? Maybe through dropshipping suppliers, third-party logistics companies, or printing labels yourself.

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Financial plan. Detail down how you intend to make (and spend) money. Include your financial needs, costs and expenses, balance sheet, and cash flow projections.



3. Choose A Business Name

The next stage in starting a business is to choose a name. This needs to be catchy, recognizable, and most importantly, not already taken. Use a free business name generator (you can do a simple Google search) to get inspiration if you’re stuck. 

Note this,  the name you choose will serve you through the business’s lifetime. Make sure it’s one you love and can see scaling with you, to avoid feeling bad down the line. 

After you’ve found your business name, secure online assets that match the business name, such as the domain name, for example (, you can also include social media handles, such as Facebook, Instagram, TikTok, YouTube, Twitter, etc. 


4. Launch A Website

Do you want to create your own online store? A simple Google search will show you enough options to choose from. A good example is using Shopify to create your own store, but if you don’t have money at all, you can use free platforms to launch but bear in mind that those free platforms will require an upgrade as you progress. 


5. Validate Ideas With Preorders

Starting a business from nothing is trial and error. Some ideas will be a boom! others may not prove to be as great as your first thought. Minimize risk by testing your ideas with preorders.

Pre-ordering works by taking money for items you haven’t yet produced. It provides cash upfront for you to invest in production, builds hype, and creates a sense of exclusivity. People buy into the opportunity to try something new before the crowd. 

What to know how to get a loan with ease? Read this guide


6. Source Funding To Grow. 

Since you are looking for how to start a business with small capital or no capital at all, then you’ll likely need a significant time and energy investment or guidance from a support network. And even if you’re able to launch with limited funds,  there will come a juncture where you’ll need funding if you wish to scale.

Research shows that 29% of small businesses fail because they run out of cash. To survive and thrive, some entrepreneurs look for startup capital, the extra money they can use to invest in inventory, marketing, or hiring their first employee. 

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Options to fund your new business venture include:

  • Crowdfunding. This is a way of raising money by taking small amounts of cash from a large number of people. Ask regular people to invest in new businesses through platforms like Kickstarter, Crowdfunder, and SeedInvest.
  • Friends and family loans. Make and leverage a personal support network that can back your new business idea.  Ask them to invest cash into your startup. Most will contribute in exchange for a larger return of investment or a small equity stake.
  • Small business loans. Get larger amounts of money from a lender, like a bank loan, to go toward payroll, inventory funding, or marketing. Bear in mind that loans only become an option once you start to see success. You’ll likely be asked for proof of revenue, and evidence that you’re able to pay back the loan before being accepted.
  • Small business grants. These are one-off huge sums of money given to small businesses. Most don’t need paying back, though there are strict criteria you’ll need to meet before any money is sent to you. Some issuers also limit how the grant can be spent.

Read Also: Cash on Delivery vs Online Payment


When starting a business, finding a good idea is half the hustle and bustle. The other half is getting access to fund it. 

A great business idea with zero capital doesn’t mean your path to entrepreneurship is over. There are plenty of ways to start a business without money. In most cases, all you need is an entrepreneurial mindset: patience, hard work, creativity, and the willingness to test new things. 

If this article fails to teach you anything, here’s a key lesson to note. You don’t need capital to start a business. 

Many entrepreneurs have created wildly successful businesses from scratch. oftentimes with no outside funding and on the side of a day job. A sound idea, commitment, and an entrepreneurial spirit will take you further than you think.


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