3 Ways to Start a Business with no Capital

One of the risks associated with starting a business is financial risk; in other words, how do I fund my business? The short answer is, “with money” but what happens if you don’t have any?  Here are three ways to start a business with no capital.

(1) You can use business equity to secure talent.

While your business equity may not have much value because you just started, you can use it as an asset to secure talent. For example, you could find a technical co-founder and offer him an ownership stake in the company or you could create an option pool for perspective hires. Either of these would help offset your cost while building your business.

(2) Secure an asset and investors will come running.

Let’s say you are producing a film. If you can attach a big name celebrity to your project, that is an asset. For example, if you could attach Tom Cruise to your script, there will be plenty of people who will want to finance your film simply because you did one of the hardest things–you secured an asset.

(3) Sell the product before you build it.

This might sound silly but it will often save you a lot of time.  If someone is not willing to buy your imaginary product, it’s probably not worth building.

While the best way to start a business is by securing capital, if that is not an option for you, these are three ways you can start a business without any capital.

Can you think of any other ways? Let us know by responding down below.