Most People Start With Less Than $5K. Here’s How They Do It

A lot of businesses get started with way less money than you’d think. They bootstrap, get resourceful and tap into the people and support systems they already have.

About 42% of the roughly 35 million small businesses nationwide started with less than $5,000 in capital, according to SCORE. So yeah, you don’t need a pile of cash, but you have to be willing to work from the ground up.

Here’s one way to do it: start with the barest version of your business and your minimum viable product (MVP) or service. Just take it down to its essential function, get it in front of paying customers and test it out. 

Here's what that looks like across nine different businesses:

• Mobile coffee bars don’t need custom-built vans to serve first customers, they can start with a folding table, an espresso machine and a tent at a local farmers market.

• SaaS companies can start with a stripped-down version of their product before investing in full development.

• Ecommerce sellers can launch with basic templates before investing in custom web design.

• Fitness coaches can train groups of clients in a local park or virtually before leasing studio space.

• Auto repair shops can work out of shared garage space before leasing their own facilities.

• Etsy shops can open with a handful of products instead of waiting for a full line to be ready to sell.

• Food trucks can run tight, simple menus before expanding into other types of food and drinks.

• Dog groomers can work out of clients’ homes before renting out space or investing in a mobile operation.

• Photographers can start with their existing gear before investing in higher-end equipment.

The trick here is to start with what you have, get it in front of people and build from there instead of waiting for everything to look “finished.”

Pro tip: Be upfront with early clients about how you’re building as you go. Most people will appreciate transparency, especially if you’re delivering on your promises and charging fair prices.

The full breakdown is in The Business Money Blueprint.