The method for setting up a business with no money

Start your own business with no money in 4 easy steps

How to set up a business with no money? We recommend the following steps for success:

1. Find a business idea that doesn't need a lot of financing

2. Create a brand identity and website for free

3. Employing the best growth levers

4. Product testing

5. Faire du bootstrapping

How to start a business with no money? The best ideas

The first step starting a business with no money is to find the right business idea. Here are a few tips to help you:

Le dropshipping

Dropshipping means selling products without holding stock. All you do is promote and sell your products. The supplier delivers orders to customers.

Tip: Ideally, you should choose products that are popular with customers. Beware of products that are too seasonal if you want to have a recurring income (Christmas, weather, season...).

Personal services

Selling your services is also one of the easiest ways to starting a business from scratch . You need to identify the skills you know best and turn them into a business:

• Tutoring

• Social network management

• Virtual support

• Language courses

Print on demand

You don't no start-up capital ? Print on demand involves applying your design and brand to white-label products. Products can be :

• handcrafted products (tote bags, handmade clothing, jewelry...)

• digital products (ebooks, online courses, etc.)

Create a brand identity and website for free

Brand identity is how you want your company to be perceived. The objective is to building a visual identity consistent with your brand's image.

To do this, you can :

• Create a logo with Canva or Midjourney

• Your own color palette and visuals

• Create a free website template with Wordpress, Shopify or Wix

These elements of your visual identity your visual identity . You can use them to work on your communication projects and create a strong brand identity: advertising, packaging, support...

The same goes for the language you use in your emails, on your website, on your social networks and in all your communications.

The best levers for growth when you have no money

Once you've set up your business, you need to develop traffic to your shop. The strategies used are generally as follows:

• le SEO

• referencing on marketplaces

• membership

• advertising

Not enough money? You'll need other resources, including time, expertise and a network.

How do you test your product?

Do you do e-commerce? The best way to test your product is to offer it for pre-order.

Selling a training course? It is possible to preview sales while the training is not complete. This allows you to evaluate your product concept before actually bringing it to market.

A tip for testing your product while minimizing costs: start dropshipping before you stock up. Dropshipping saves you the expense of stocking and overstocking your products.

You can also suggest a freelance service without having fully completed your training. However, you need to be sincere about your skills and prove that you can train quickly.

Be careful! This approach is risky. You need to be sure of your customers' trust, and then deliver the value they expect.

What is bootstrapping?

Bootstrapping or self-financing involves using one's own resources to starting a business from scratch . So you're the only investor when you bootstrap.

This method of financing lets you keep control of your finances and run your business the way you want.

You don't waste time and money raising funds (most entrepreneurs spend around 3 months full-time raising funds, or pay "fundraisers" who charge around 5% of the total funds raised).

However, bootstrapping requires a minimum of funds and sales. So you need to concentrate on growing your business.

To finance your main activity, you can choose a secondary activity to pay yourself a salary.

In France, it is also possible to benefit from ARCE (aide à la reprise ou à la création d'entreprises), which allows you to benefit from your unemployment rights while setting up your own business.

How much money does it take to set up a business?

Which company should you open on your own?

Here are some business ideas you can create on your own:

Le freelancing

You can open a freelancing business on your own. What's more, it's a job you can do in any sector:

• consultant

• coach personnel

• virtual assistant

However, marketers and developers are the most in-demand freelancers.

E-commerce en dropshipping

Dropshipping enables sellers to sell their products without holding stock. Once an order has been placed, the company sends the order form to the supplier. The supplier then prepares and dispatches the goods to the customer.

Classic e-commerce

As in traditional commerce, you produce your e-commerce goods yourself, or look for a supplier. You also take care of order preparation and delivery.

Classic e-commerce allows you to keep control on your products and your brand image (quality, price, delivery...), unlike dropshipping.

Sources of financing for setting up a business without cash flow

Finance your supplier invoices with Hero

Hero pays your supplier invoices. We offer your company instant access to financing for your growth. We enable you to sell your products before paying your suppliers. This opportunity gives you the chance to increase your sales without limitations or financial risk.

Our fees are transparent, starting at €0.05 per day.

For example, it's perfect if your e-commerce business is growing fast and you're having trouble financing your inventory.

Hero: Advance customer payments

Hero can immediately advance your invoice as soon as the order is validated. Our fintech credits the invoice amount to your account within minutes. In fact, we can advance up to €100,000 to boost your cash flow.

And that's not all! Hero requires :

• nor commitment

• no minimum purchase

In 2024, Hero a levé a further 11.3 million euros from US investment funds Valar . We have solid financing for your growth!

CB deferred payment

Hero also offers deferred payment. We offer a credit card that allows you to pay immediately and be debited after 30, 60 or 90 days.

Deferred payment allows you to manage your growth independently. It preserves your capital, increases your liquidity and boosts your cash flow.

The honor loan or BPI

The honor loan is an interest-free, collateral-free personal loan which you promise to repay on your honor. It is intended for business start-ups and takeovers.

Unlike repayable advances, honor loans are granted to the individual, not the company. This means you can finance your business without having to make a personal contribution.

Important note:

To obtain an honorary loan, applicants are selected, often by pitching their project to a panel of professionals.

Le crowdfunding

Crowdfunding or participatory financing consists of finding investors to starting a business from scratch . It is similar to raising funds on the Internet from contributors willing to finance the business project.

Every year, more than 2 billion euros are raised on crowdfunding platforms worldwide. However, the project owner must define his project clearly. They must provide the following information:

• Identity of the project owner

• Use of funds raised

• Nature and purpose of the project

ADIE microcredit

ADIE makes it possible to finance your business without cash . It is also dedicated to those who are unable to obtain a bank loan.

Repayment terms range from 6 months to 48 months, with a fixed rate of 9.87%. ADIE gives entrepreneurs access to expert advice (in addition to financing).

Entrepreneurial competitions

By winning a competition, you can incorporate the prize money into your company's equity to start your business . In addition to financing, winning a competition gives you greater visibility and credibility with banks and investors. You'll also be able to meet partners.

State aid (including ACRE)

The "Aide à la création ou à la reprise d'une entreprise" (ACRE) is a subsidy for the creation or takeover of a business. 50% tax exemption on social security contributions dedicated to entrepreneurs setting up a business.

Important information:

ACRE is not to be confused with ARCE, which is for jobseekers or creators who are receiving compensation.

The exemption lasts for 12 months from the date of business creation.

Solidarity financing

Solidarity financing is granted to entrepreneurs whose the project meets a social or environmental need . Social and Solidarity Economy (or SSE) funders can finance the creation of your business. These include :

• la Nef

• France Active

• Initiative France

So you don't need start-up capital to build a business. The keys to success lie in your creativity, your personal investment and your ability to convince other partners and investors for external financing.

With this in mind, Hero offers a wide range of payment solutions to finance your business. These include factoring, supplier invoice financing and deferred payment. Entrepreneurship and perseverance will also take you further than you think for start your own business with no money .

Frequently asked questions

What's the easiest type of company to make?

The sole proprietorship or EI is the easiest type of business to set up. It has no legal personality or share capital. However, a sole proprietorship is not a company or a legal entity.

Is it necessary to enter an incubator to create your own company?

It all depends on whether or not you have a network, associates and a fear of being alone. However, some incubators are only useful for difficult sectors such as energy and deeptech. This is because they require specific suppliers and customers.

Is it possible to buy a business with no down payment?

Yes, it is possible to buy a business with no capital outlay, using bank leverage. But it's still quite rare, especially as the bank will ask for a guarantee on your personal assets, such as your house.