How To Start An Online Business With Less Capital

how to start online business

When it comes to starting a new business, most entrepreneurs face a common obstacle—a lack of investments. Many exciting ideas and dreams come to an end due to the shortage of funds.

However, money is not the only thing you need to launch your startup. A combination of skills, market know-how, and careful planning can help you start your online business without any actual funding. It’s possible to start a business without practically zero investments.

How It Works

First, it’s important that you understand exactly why a business needs money.

There’s no such thing as a fixed ‘startup fee;’ the amount you’ll need depends on the type of your business. There are certain things for which your business will need money, like:

  • Licenses: Whether you’ll need a license or not depends on your location. In most cases, a registration is mandatory; this comes with a fee.
  • Supplies: If your business involves manufacturing products, you’ll need to buy raw materials.
  • Equipment: Does your business need any special software or equipment?
  • Office space: This calls for a huge investment. You cannot ignore things like the Internet and regular maintenance costs.
  • Employees: Do you need to hire employees for your business? How many?

Here are couple of ways you can start a business with a low budget.

1: Reduce Your Needs

Expenses like licenses and registration are things you cannot avoid. However, you can avoid renting office space by starting an e-commerce-based business. E-commerce solution providers like Shopify charge a meager subscription fee and take care of all your storefront requirements. This includes website design and development, payment options, and even details like SEO.

When you start an e-commerce store, you can actually consider not hiring any employees. It all depends on your business model and your budget.

2: Start Slow

Consider a ‘warmup’ period for your business. You don’t need to get on a full-fledged business plan right from the start. Take it slow for the initial few months, as you learn the ins and outs of running your own business.

You can start by providing one niche service and slowly expand, depending on the revenues you earn. Once you start earning enough, you can build your business the way you want.

3: Get Funded

Getting funded from outside sources is another option when you’re running low on ‘startup funds.’ There are dozens of ways to raise funds for your business ideas, including:

Friends Or Family

Most people aren’t very keen on asking for funds from friends or family. However, these people are the first ones to help. You might be required to manage the amount from multiple sources, but it’s worth it.


This has become popular recently and is one of the best ways to get funds for your business. As long as your idea is good, you can easily attract investors.

Angel Investors

These are rich individuals who back the business ideas of others. In return, they might ask for partial ownership of the business—this is something you’ll need to keep in mind.

Bank Loans

There are many banks and NBFCs out there offering loans for people looking to start a business. If you have a good credit record, this is another option you can consider.

Venture Capitalists

These are organizations can fund your venture after it has been in operation for a while.

Starting a business isn’t easy, and requires passion and ingenuity. With these 3 ideas, things just might get a little bit easier—use these well, and you can get your online business up and running with practically no initial funds.

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