There are three things you should know if you are thinking of starting a business with no money.  I’d interviewed successful entrepreneurs who have started businesses with less than $50. Some might be obvious while some might not, here are the three things you need to know.

Have To Start Small

Unless you can leverage the $50 into $1000 or $10,000, your business will most likely start out small.  Everything in the beginning of your business’s operation will either have to be done by you (free) or cost very little.  There isn’t much room for error.  The startup capital for your business is only $50.  You could of course use the $50 to create nice business plans and make presentations to your friends and family to raise money.  That could be a creative avenue to use that money.  Otherwise, you’ll have to start small.

Scale Up

Once the business is up and revenue is coming in, then look for opportunities to scale up.  Here’s a good example of a successful entrepreneur who started an eBay business with very little money and is now scaling his business.  Notice the things he does.  They all help with productivity.  If start an eBay business, you might need to at first write addresses on an envelope because you can’t afford to pay for printed labels.  But once sales start coming in, getting printed labels will dramatically streamline the sales process.  If you can put money to increase productivity, you will scale your business.

Most Likely On The Internet

This might be the obvious of all.  It is way easier to start a business with no money on the Internet.  Yes, the Internet.  Most business tools are free to use and creating a website can be done relatively cheaply.  And yes, there are still plenty of opportunities to make money online if you are know where to look and is persistent in working on your business.  Some of these businesses can be started with very little money- blogs, graphic design business, eBay empire, domain trading, freelance business, etc.

Remember that every business started out small.  If you have very little money, the best thing to do in starting a small business is to first get a couple of sales, then invest in things that will increase the productivity of the business.

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