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No Money? No Problem!

by Tim Berry

Is it possible to start a business without money or collateral?

Anything is possible and most companies were started from someone’s ideas written down on paper and financed by those who saw merit in the plan. Still, realism is important. This depends a lot on the specifics of the business. Some businesses are relatively easy to start without start-up funds, some virtually impossible.

I think you need to match your ideas to reality. Millions of service businesses start without money or collateral. These tend to be consultants, graphic artists, accountants, and other professionals. You have a skill that other people need, you have potential customers, take a job, and get started. Twenty years ago I started my business plan consulting business without money or collateral, just a skill, contacts, and the will to do it. You probably know several people who have done the same.

On the other hand, some businesses just don’t happen without start-up money. For example, you may want to develop and produce some electronic item that the world needs, but for that business you’ll need money for designers, software engineers, hardware engineers, prototypes, testing, packaging, and lots of other start-up costs.

Even on a smaller scale, few restaurants or retail stores start up without money to pay in advance for the location, fixtures and furnishings, signage, and so on. In these cases, you don’t necessarily have to have the money and collateral yourself, because for a good business the idea is that you raise the money from other people who want to participate in the upside of the investment.

That’s what this whole site, Bplans.com, is about: developing the business plan and raising money.

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30 readers have commented on “No Money? No Problem!”

  1. chit win said on January 11th, 2008 at 4:35 am:

    I do want to really know

  2. Ndiafhi said on February 6th, 2008 at 1:58 am:

    I need to start a restaurant business and i dnt have money need your advice.what actually must i have to start this kind of business which equipments,how do i get customers to know me

  3. daniel said on February 7th, 2008 at 7:37 am:

    I am in dire need to open a bar and grill restaurant, but i have no funds. I do have experience in running a restaurant and have been in the business for 20 years. please advise how to prospect investors and sell them!

  4. Ratione said on February 10th, 2008 at 3:16 am:

    I won’t to open up a pet shop i have nine years working with diffent animals. I need some help in starting this business.

  5. Jack Arnolds Hub said on February 13th, 2008 at 10:52 pm:

    cool article, thanks so much. Good writing, going to read more…

  6. Tom said on February 22nd, 2008 at 9:18 pm:

    I want to open a supply and tool store for drywallers in my area. How do I develop equipment connections with suppliers to give a competitive price?

  7. chi said on February 22nd, 2008 at 10:35 pm:

    i want to launch a kids clothing line.i have no idea how to go about it and i have no money.please what advice do you have for me?

  8. MDM said on February 25th, 2008 at 3:37 pm:

    I am a real estate investor surrounded by foreclosed properties and homeowners unwilling to file bankruptcy. I have a plan, but need capital.

  9. Aditya Chandre said on March 1st, 2008 at 4:32 am:

    it is realy good i want to try it plz help me
    thanking you

  10. MAHLODI said on March 7th, 2008 at 3:45 am:

    I want to start stationery supplier especially for the rural areas,coming from rural area i saw many schools and orgaisatio tavelling a long distance to buy stationery. My plan is not solid,i have the ideas and where to start but no capital please help me

  11. kimberley said on March 7th, 2008 at 7:21 pm:

    I would like to find resouces to buy and start my salon

  12. Bobo said on March 11th, 2008 at 11:32 pm:

    hi my name is bobo from Soweto, i want to start an advertisisng agency in soweto and i need your help, i dont know where to start andi dont have a capital.

  13. capenter said on March 17th, 2008 at 6:51 am:

    I’m planning on opening a miniature golf course in the Dominican Republic in a resorts area.I have investors ready to join in,but i need to develop a business plan for them.How can you help me.

    Cap

  14. Jae said on March 18th, 2008 at 8:35 am:

    I’m in the early stages of attempting start a lounge in Philadelphia,I have no capital and really need some assitance
    -Jae

  15. Yolanda said on March 20th, 2008 at 6:49 am:

    I am in despread need, I want to open my own small business, I have no money to open, never ran a business, would like to know how to start a business

  16. Tasha said on April 1st, 2008 at 1:45 pm:

    Hi i am interested in starting a lounge in orlando live entertainment but I have no funds to start my idea please help!

  17. quinton said on April 4th, 2008 at 12:02 pm:

    I need information on how to start a janitorial bussiness with no capital. where do i get the contracts?

  18. Janice said on April 5th, 2008 at 12:41 pm:

    Hi

    I have an excellent business idea that MUST work and need a shrewd investor who can smell a good deal. Where can I find such a person?

  19. JMc said on April 5th, 2008 at 12:44 pm:

    Hey Jan

    You sound positive! I wish I could help. Anyway, not to worry, there must be someone out there who will pick up on your good vibe and give you that needed break.

  20. junior said on April 8th, 2008 at 9:33 am:

    hi my name is junior..iam 17 i knoe wat u thinking i am to young …i want to start my own closing store…and i have alot of ideas about wat kids wear and dont..but i have financial problems..my question is how do i get people to believe that i can start it or to invest in it

    Thanks junior

  21. liljo said on April 14th, 2008 at 12:52 pm:

    Im interested in starting a barber shop….a lot of good ideas just not sure where to start

  22. APRIL DELAUDER AND VINCENT AVERY said on April 20th, 2008 at 2:09 am:

    we are interested in starting our business in a legal bar. we are trying to start it but don’t have the funds or the knowledge of where exactly to satart.

  23. Maya said on April 21st, 2008 at 12:01 pm:

    Hi,i want to open a modeling agency in limpopo bt idont hav capital or knw wer to start.iv gt experience in modeling

  24. pat said on April 21st, 2008 at 3:52 pm:

    i am trying to start my own buisness and dont know how to get started w cash in hand an materials. Can you help me out and show me a little insight on how to get started.?

  25. Clifford said on April 25th, 2008 at 2:16 am:

    Hi there….

    I realy want to start a Coffee Shop, and have no funds to do that, and it’s not always nice to ask Mom and Dad to help.

    How can i start my own Coffee Shop with no funds?

  26. liz said on April 26th, 2008 at 5:48 pm:

    i need help launching my feed store! ive got the building the knowledge and the drive just no funding

  27. Mrs Donald Lasalle Lee said on April 26th, 2008 at 7:51 pm:

    I would like to start a small learning lab in my area.
    I need funds in launching my center. I have the knowledge I need someone to care.

    Darlene Lee

  28. Casi Deatherage said on April 28th, 2008 at 2:52 pm:

    We have resources built into Business Plan Pro to help you get funding. For example, some businesses choose to start by bringing in investors for start-up funding, while others go to a bank for a business loan. Business Plan Pro has resources built in for both approaches (the SBA loan application for bank loans, the Venture capital Database for investment sources).

    Best regards,

    Casi Deatherage
    Palo Alto Software
    Customer Care

  29. Maria Garcia said on May 8th, 2008 at 1:42 pm:

    I would like to open a shoe store, but need help with funds. And, eventually my husband would like to start a car wash business. Any suggestions?

  30. trachelle said on May 15th, 2008 at 4:40 pm:

    I want to open an all day spa in a coming up community in my city but don’t have the funds.

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