Why Starting a Business Is More Affordable Than Most People Think

Unless you're starting a restaurant or some kind of brick-and-mortar entity with big overhead fixed costs, you don't need much money to start a business. Get a website. Coin a business name. Go forth and find customers. 

You can build the business as you go -- just go find your market, find the money, find the demand, see what people need, and go solve their problems. Here are a few reasons why starting a business with no money can be more possible than you might expect. 

1. Start a business by working from home 

Many businesses can be started by working from home, like legendary tech companies that started in someone's garage. Unless you're trying to start a business that requires floorspace and a real-life storefront from Day One, many businesses can be started from a spare room in your house, or from a laptop on your couch. 

The only exception to this is if you need to follow licensing or permitting requirements for your business. Some locations might not allow you to run a commercial food business or other regulated business out of your home. Don't run afoul of any regulations (or break the rules of the lease on your apartment). But for many would-be entrepreneurs, using your home as company headquarters can be the best way to start a business without a lot of start-up capital. 

2. Use a shared workspace to start a business 

When you start a business, one of the best ways to do small business marketing for your company at a low-cost is to network with other business owners. Go find the local community of entrepreneurs where you live. Many cities have startup incubators, small business development centers, co-working spaces, or other shared spaces where people like you are trying to build businesses. 

There might be a membership fee for joining a shared workspace or some amount that you have to pay each month for rent. But using shared workspaces for your business can often be cheaper than paying rent for commercial real estate all on your own. And you might meet some inspiring new peers and colleagues -- you can help each other learn, grow, and succeed.  

3. Start a business with website builders

Unless you want to run your company entirely via social media channels, pretty much every small business needs a website. Your small business website is a must-have home base to connect with customers, sell your products, and be found online. 

Fortunately, you don't need much money to launch a small business website. The best website builders can give you professional-looking website designs for just a few dollars per month. 

4. Use low-cost business marketing software 

Even if your small business is just getting started, or you don't have much money in the bank, you can make your business look bigger and well-established with small business marketing tools. There is a wide range of effective, low-cost, professional-grade marketing software available to help small business owners automate their marketing, find new customers, and close more sales. 

5. Form an LLC or other business entity for (nearly) free 

You might not want to commit to taking this step right away, but if you're serious about making money with your small business idea -- especially if your business might go from a side hustle to a full-time income -- you should form an LLC (limited liability company) or other corporate entity. 

Forming a legal entity for your business (like an LLC) is essential if you want to make your business more legitimate in the eyes of the law and the banking system. Forming an LLC can help you get a business bank account, and potentially save yourself money on taxes. If you use an LLC or other business entity for your small business, this can also help separate your personal finances from your company finances -- and might help protect you from some worst-case scenarios (like a lawsuit). 

The exact cost of forming an LLC varies by state. Check with your state's Secretary of State office, or other state-level regulator that manages business formations. But many states charge less than $100 for forming an LLC or other small business entity. 

Bottom line 

Starting a business doesn't have to cost a lot of money. The most important thing you need is a good idea for how to deliver an in-demand product, or how to deliver a lucrative service that solves problems. 

You can often start by working from home with a low-cost website and easy-to-use marketing tools. Don't let a lack of start-up capital hold you back -- find your target market of customers who are willing to pay for what you offer.