Although many people dream of setting up their own business, the anticipated investment can be a strong deterrent.
On average, it takes £22,756 to set up a limited company in the UK, which can be difficult or impossible to afford without loans or investment.
However, there are avenues new business owners can take that require little to no upfront investment, and they can still develop successful and lucrative businesses.
Services
A good way to start your own business for free is by selling your skills. If there is a hobby or skill you have experience in, consider selling your time and talent. This is especially affordable if you already have the required tools, software or materials to hand. It is also free and easy to market your services through social media content or word of mouth.
Services you can sell include office tasks like bookkeeping, copywriting, and photography. Alternatively, you can offer physical skills like bike servicing, baking, repairs, or deliveries.
Digital products
Instead of going through the effort of creating, manufacturing and delivering products, you can create digital materials and sell these. They are an easy business structure, as once you have produced the content, you can sell an endless amount with minimal effort.
Digital products include eBooks, online courses, worksheets, designs and how-to guides.
Drop-shipping and preorders
If your business idea involves a physical product, you can avoid buying and storing in bulk by using drop-shipping or preorder systems. Drop-shipping is when your supplier delivers directly to the customer, leaving you to just manage the transaction and customer experience.
You can also use print-on-demand services, where customers place their orders in advance and then you manufacture the exact amount you need, minimising waste and ensuring you invest only what you need.
Securing investment
To fund your business, you may be able to get a business loan, secure capital investors or obtain a small business grant. A business loan requires repaying with interest whereas a business grant does not require any repayment. Capital investors can give you funds in return for shares in the company.
For more advice on setting up and running your business, check out our Knowledge Hub.
You can also watch our YouTube Business Advice For You series on How to Start a Business With No Money below.
