Starting your own business can be quite a financial commitment. Most entrepreneurs decide to take out a loan or line of credit to help cover their initial start-up costs.

You can also consider invoice financing as well where you can borrow against outstanding invoices that you have pending. However, you may want to cash flow your business startup to avoid starting out with debt.

Things may move slower when you fund your business with cash only but it could be beneficial in the future in terms of your business finances.

If you want to cash flow your business startup, here are some tips to help you get started.

Start Small, Build From Scratch

It’s much easier to cash flow your business startup when your initial costs will be relatively low. It’s a lot harder to pay for a franchise business along with materials and cover team member wages with the cash you have on hand.

On the other hand, just starting your business by launching a website to market some of your products will require much less cash initially.

Start small when you’re trying to cash flow and build your business from scratch. Set a budget to determine how much your initial costs will be so you can plan your finances accordingly.

Begin Selling a Product or Service Early

This may come as a surprise to some people but you don’t need an official business to start making money. If you have a product you’re ready to sell or a service you can offer, you can start making money as a freelancer or contractor.

You don’t need a fancy business name, LLC, or an office space. Determine one or two things you can start selling and then use the profit you earn to build your business.

Launch a Side Business

I recommend anyone who’s looking to own business start their new venture on the side. It’s less risky when you still have the income from your main job.

Make a schedule to determine how many hours you have available to work on your side business and use the income from your 9-5 job to cash flow the initial costs.

In a perfect world, this scenario would work, but what if you lost your job or are starting a business out of necessity? My next point will provide a reasonable solution to this.

Utilize Grants and Self Financing

Depending on the nature of your business, you may be able to qualify for a grant. The SBA has tons of different grants that small business owners can take advantage of. The great part is that you don’t have to pay the money back.

Another option would be to consider crowdfunding. Sites like SeedInvest and Kickstarter can help you get donations that can be used to fund your business. You can dedicate your venture to an honorable cause or use some of the proceeds to give back to the community in some way.

You can also pitch your business ideas to investors if you know anyone in your network who may be able to invest.

Sell Personal Items or Use Windfalls

Have items just laying around your home that you no longer want or need? Consider selling them and using the profit to fund your business. Do some spring cleaning and categorize all the items you wish to sell for extra cash.

Consider selling some items online and even cross-posting on multiple different websites to ensure you sell the items faster. You can also consider selling your stuff to local buyback stores.

Finally, take advantage of any windfalls like bonuses, tax refunds, tips, etc. Every little bit counts when it comes to funding your business.


Starting a business without taking out loans may be challenging, but it’s worth it. You can cash flow your business startup whether you have a lot of money or not.

Get creative and be strategic if you want to cover all your start-up costs with cash.