Starting a small business in Canada has plenty of advantages, but can you do it without any of your own money - meaning, no money down, out of pocket?
The answer is… yes!
But how?
In today’s day and age, starting a business is much easier than before. You have the internet, social media, connections, government funding, and AI!!!
The recent economic situation has really impacted quite a bit - on a personal level, to a degree that most people struggle with employment, rising food costs, bills in general, so the extra money that was once used to help create an entrepreneurial dream come true is limited.
With this, more and more people are turning to government funding support or no-money-down ways of starting a business. At least the entrepreneurial spirit is still there!
A few things to consider first:
- Is your business idea one that has limited costs upfront?
- What does no money down really mean? What’s the alternative
- Long-term plan
Starting a business with no money
Starting a business with no money down is possible - to a degree. So let’s clear that up first.
Is your business idea one that has limited upfront costs?
In other words, are you starting an online business where your costs may be your website, a bit of marketing, time - or, are you building a photography business which requires equipment? Or are you a retail shop that requires supplies, inventory, location, staff..etc
Each of these situations is quite unique and has to be approached in a differnt way - but still doable!
Most people, when they are starting a business, start with using their own savings, credit cards, or personal lines of credit (at least, those who have it). Those who don’t use free tools, connections, and work extra hours to make it happen.
The ideas that work better on a no-money-down, or low-startup-cost system:
- Service-based businesses, like consulting, freelancing, digital services, and many home-based businesses
- Online businesses involving dropshipping, print on demand services, affiliate marketing, content creation, digital product sales..etc
- On the lower cost side (but still some cost), cleaning services, tutoring, handyman services, mobile services..etc
It’s not always for everyone. Some ideas that you simply won’t be able to make work with no money down:
- A restaurant or food shop
- Construction company
- Logistics company
- Childcare company
- Manugacturing..etc
If you require upfront costs to set up, that are unachievable by dedicating more time, chances are you need some sort of startup capital to make it a go.
This does bring us to the next point - what does no money really mean?
What does no money down really mean? What’s the alternative?
Your version of no money and my version of no money when starting a business could be totally differnt - so the question is something to think about.
When starting a business, even with the idea of “no money down”, let’s assume you are realistic - not a total lunatic, you should be ready to spend at least $1,000 bucks on making an effort towards your entrepreneurship dream.
While not all types of business require the upfront cost of $1,000, for the purpose of our guide here, let’s assume this is what you got to work with.
Some people may laugh and say “What can you do with a thousand bucks” - and you’re not wrong. Everything is an expense, but any capital is good capital.
Your business may require a lot more, and your perception of what no money means could be much differnt than mine - perhaps your no money means you don’t want put in more than $10k; or $50k or $100k - everyone has a different situation.
So putting that aside, what are some alternatives to “no money down to start a business”?
First of all - is your “no money down” situation a lack of finances one, or is it a preference?
If you’re just broke - a few options would be:
- To borrow money from your friends or family.
- Perhaps a partner who is super dedicated to making the business work with you?
- Pulling together some borrowed money (credit card, line of credit, loan)
Or maybe consider government funding?
Government funding comes in many forms - government grants, government loans, tax breaks/credits, and there are plenty of options available. Review some government grants and funding options for your business for 2026.
If it’s just preference and you prefer to do it the hard way - hard labor, that’s a different story, but all the power to you!
In any case - starting a business in Canada with no money down is challenging, but doable. As you navigate your way through it, it’s always important to plan ahead.
Think long-term!
If you have no money to start a business initially, there are ways around it.
You can borrow from friends, family, barter, maneuver your way around, or even access government funding, but if you are planning long-term, the success of your business may truly depend on it.
A long-term plan should be to have a reliable source of funds to help you not only cover the initial startup costs, but the unexpected costs of running a business, and believe me, there are many!
So let’s plan wisely.
Your business plan is a key document that helps you plan your business before you launch publicly. It will assist you in seeing your operation unfold, prepare you for the costs required to startup, to launch and to operate as well, potentially assist in risk planning, for those unexpected situations.
Being prepared means taking precautions now and plan for the future.
As mentioned, your initial limited upfront cost of starting a business is a great way to dedicate more time to the free tools, free resources, using AI for example, but long-term, you definitely want to have a solution and a reliable funding source.
So can you start a business with no money down?
The short answer is yes, but there is far more to it.
Is the business one that can be started with no capital?
What does no capital mean for you?
Can you source some funding if needed (friends, family, government funding…etc?)
Working with an expert to obtain government funding, especially free grants for your Canadian business, may be a great first step. This way, you can eliminate the worry of having to spend out of pocket! Speak to a Canada Startups expert and see what can be done to get pre-startup funding to help cover some of those expenses!