10 Tips on How to Start a Business in the UK With No Money

Starting a business with no money sounds like a contradiction, but it’s more common than you think. 

With the right idea, the rise of digital tools, community support, and creative side hustles, you don’t need a big bank loan to get going, you just need to think lean.

If you’ve got the drive, here are 10 practical tips to help you build a business from scratch, without any upfront cash.

1. Start small and use what you have

You don’t need an office, fancy software, or top-of-the-line equipment to begin. In fact, many businesses across the UK start from bedrooms, sheds, or kitchen tables.

So, just start where you are. Use your laptop, phone, or tablet. Work from home to avoid rent. If your Wi-Fi isn’t strong enough, work from a library or coffee shop with free internet. Need packaging or equipment? Repurpose what you already have or ask around.

❓Did you know?

Around 70% of new businesses in the UK start from home, contributing an estimated £300 billion to the economy, according to official government data. There are now approximately 2.9 million home-based businesses across the country.

Backing this up, a 2023–24 report revealed that 74% of UK businesses are run by solo founders, often working from their own homes rather than offices. Moreover, there's been a 34% rise in businesses launched during spare time, with over half of these ventures starting in bedrooms, and 23% in kitchens.

Examples of what you might already have:

📌 Next step: Make a list of every resource you already own – devices, tools, internet access, software, skills. Your business starts there.

2. Build around your existing skills

Instead of spending money to learn a new trade or start something unfamiliar, think about what you already know how to do. Your existing skills, whether from previous jobs, education, hobbies, or side projects, can often be turned into a business.

You might already have marketable skills in:

There’s no need to reinvent yourself. Start with what you’re already confident in doing and build from there.

📌 Next step: Choose one skill that people have complimented you on or that you’ve used in previous jobs. Research how others are offering similar services online.

3. Choose low-cost business models

Some business models naturally require little to no money to start, especially those that don’t involve inventory, premises, or expensive tools.

Affordable business models to explore:

These models allow you to begin using your time and skills instead of money. Platforms like Shopify, Etsy, and Fiverr have free or low-cost entry points to test your offer.

📌 Next step: Pick one model and outline what your minimum viable business would look like – what you can offer, how you’ll deliver it, and how you’ll charge.

4. Test your idea as a side hustle

Instead of diving into full-time business ownership, start your idea as a side hustle. This way, you can validate your idea, test pricing, learn about customer expectations, and see what works – all without giving up your main source of income.

No matter if you're working full time or part time, set aside a few hours each week to grow your idea. Many people start out this way – working on evenings and weekends, taking small orders, or offering one-off services to build experience.

You could start by:

📌 Next step: Pick one small version of your business idea that you can test this week. Set a short-term goal like “get one paying customer” or “finish one product sample.”

5. Make use of free digital tools

There are hundreds of free tools available online that can help you set up, manage, and promote your business. You don’t need to pay for software subscriptions in the beginning.

Useful tools with free versions:

These tools are used by thousands of businesses across the UK, including side hustlers and self-employed individuals. They're beginner-friendly, and in many cases, all you’ll ever need at the early stage.

📌 Next step: Pick 2 or 3 tools to help you with branding, admin, or customer communication. Focus on free versions only until you have consistent revenue.

6. Get customers to pay upfront

Cash flow is often the biggest challenge when starting a business without capital. One way to protect yourself is by asking for deposits or full payment up front.

This approach is standard across many industries and helps reduce risk. It also gives you working capital for materials, time, or delivery costs.

Where upfront payment makes sense:

Just be transparent and professional. Add clear payment terms to your website, invoices, or booking forms.

📌 Next step: Set up a simple process to request deposits or prepayment. 

Need to send a professional invoice fast? With ANNA’s free invoice generator, you just need to enter your details, and it will generate a ready-to-send PDF invoice for your client.

7. Tap into free advice and support

There’s a strong support network in the UK for people starting businesses, especially those starting from scratch or facing barriers to entry. You don’t need to pay for a mentor or consultant because there are plenty of free alternatives.

Where to find help:

You can also join forums like UK Business Forums, r/UKSmallBusiness on Reddit, or free Facebook groups to ask questions and get guidance.

📌 Next step: Register with your local Growth Hub and check for upcoming free events or mentoring sessions.

8. Source equipment for free or cheap

Even if you need tools, stock, or packaging to run your business, there are ways to find them without spending much.

Try:

If you need printing, check whether your local library offers free or low-cost printing services. If you need a workspace, check if your local council or business hub offers hot-desking or business library access.

📌 Next step: Make a list of equipment or materials you need. Research second-hand or borrowing options before buying anything new.

9. Focus on free promotion

Marketing doesn’t have to cost money, especially at the beginning. There are plenty of ways to build awareness without paying for ads.

Free and effective ways to promote your business you can try today:

You don’t need a huge following – just a clear offer and regular updates. People buy from businesses they trust, so showing your process, values, or story helps build credibility.

📌 Next step: Choose one social media platform and commit to posting 2–3 times per week. Share real value, not just sales content.

10. Develop negotiation and networking skills

You don’t need to spend money to build relationships. Being confident, clear, and collaborative can open doors. Networking doesn’t have to be overcomplicated, and you don’t have to have a sales pitch – it’s about connecting with others who can support your journey.

How this helps:

There are free networking events in almost every UK city. Local councils, coworking spaces, and startup hubs often host open sessions where you can meet other business owners.

📌 Next step: Attend one free event this month, either virtual or in person. Practice introducing yourself and explaining what your business does in one sentence.

Final thoughts: You don’t need capital – you need a plan

Starting a business in the UK with no money isn’t just possible, it’s actually how many businesses begin. You don’t need outside investment, expensive software, or perfect branding to get started. You need a simple plan, a skill or service people want, and a willingness to be resourceful.

Take the first step, however small it feels. Test an idea. Share your offer. Reach out to others. Use free tools. Learn as you go.

And remember: the goal isn’t perfection – it’s progress.

And when you're ready to make things official, ANNA can help you handle the practical stuff without the stress. It’s a next-generation business account that covers your banking, invoicing, expenses, bookkeeping, and taxes in one clever app. 

You can track spending, create and send invoices with your own payment link or QR code, and even file your taxes to HMRC — all from your phone. 

With plans starting at £0/month, ANNA gives you the tools to get paid faster, stay organised, and save on accounting costs while you grow.

If you're building a business from the ground up, ANNA is like having a support team in your pocket — minus the overhead.