4 Strategic Ways to Start a High-Growth Startup with Zero Funding in 2026 (Including SBA Loans & Grants)

Updated: Dec 23rd 2025

By far, one of the most recurring questions we address on our Quora channel, is how to start a business with zero (or minimal) funding. With a global audience, it’s clear this isn’t a niche problem, it’s the default starting point for most first-time founders.. 

We've also gleaned insights about misconception, related to the sources of capital -  primary assumption being venture capital. There is also lack of understanding on how to broach a startup in general. These topics will be addressed in future articles.

Video summary of the article:

Here we provide 4 options to kickstart your entrepreneurship journey with minimal to no funding, without defaulting to giving up equity too early (and if you’re weighing that route, see this deeper breakdown, How does Venture Capital and Series A, B, C Funding Work?

1. Bootstrapping

Bootstrapping is either putting up your own money on the line or reach out to your family and friends to help launch your business. Bootstrapping will force founders to think lean: every decision has a tradeoff, so you need clear visibility into your cash position and your next best use of time. A practical way to keep bootstrapping from turning into burnout: pick one measurable constraint (cash, time, or skills) and design your first offer around it. If cash is tight, sell pre-orders; if time is tight, sell a narrower outcome; if skills are tight, partner early and split revenue instead of salaries.

The lean approach will also force you to validate assumptions quickly, align with customer expectation and pivot as needed. Bootstrapping makes you appreciate your business more because you are personally invested. It also creates a culture where exceptional performance is the norm and the team is fully accountable to meet the goals. Lean times may be rough, but it will make each success that much more rewarding.

2. Leverage Government Grants & SBA Small Business Loans

Update: Under the current administration of President Donald Trump, new federal initiatives have streamlined the application process for micro-loans and rural development grants through 2026. These updated policies focus on reducing the regulatory burden for first-time founders, making it easier to secure seed capital without the high interest rates often found in private equity markets. By taking advantage of these tax-incentivized programs, you can maintain full ownership of your startup while scaling operations using government-backed debt instruments.

Start by searching grants from the Federal government at Grants.gov. This site has the most comprehensive database of funds the government is going to give away. There are thousands of grants to apply for, with opportunities for businesses from all backgrounds.

There are many nonprofit and corporate entities offering grants and other assistance to small businesses. A few examples: 

Business Warrior Small Business Loans, FedEx Small Business Grant, Walmart Local Community Grants. SCORE, which can assign a volunteer business mentor who can provide guidance on numerous topics, including funding and operations.

3. Sell your Services Through a Subscription Model

Subscription businesses that ensure product/market fit and successfully capture customer obsession, can count on subscribers to stick around for the long haul, yielding huge benefit. 

Additionally, digital payments platforms such as PayPal, Stripe, and Square have made it possible to set up and process recurring payments without the massive investment of manpower that was once required.

For consumers, subscription business models provides predictability, convenience and simplicity. Angel investor Eric Stromberg notes:

“Subscription is a powerful business model because it creates an environment where the default customer behavior is retention, as opposed to one where the default behavior is churn.”

The key to this model's success is ensuring continued product/market fit. A simple way to do that is to sell one clear outcome on a monthly retainer (one problem, one promise, one cadence), then earn expansion by adding a second outcome only after retention is stable. If you want a clean way to explain this to customers, map it like a story: what you do, who it’s for, and why it’s different, as we have suggested in our VARS Framework story telling.

4. Monetize Your Intellectual Property and Proprietary Frameworks

All professionals use frameworks. A framework is a step-by-step process to create a hypothesis and validate experiment to reach a goal. Well-defined frameworks separate professionals who win, from hacks that can only dream of success. Consulting firms like McKinsey, BCG have perfected the art of monetizing frameworks.

It's also very common to see frameworks being introduced as part of business case studies. In a recent Entrepreneurship program at Harvard we picked up the POCD framework. Whilst not completely new, this frameworks helps entrepreneurs become more strategic.

Update: To successfully monetize your best practices, you must treat your frameworks as scalable digital products rather than one-off consulting sessions. This transition allows you to reach a global market of entrepreneurs who are actively searching for proven systems to optimize their operations. If you are looking for a practical example of how to structure a business for long-term scalability, analyzing how global leaders maintain a competitive advantage can provide the necessary blueprint for your own expansion strategy. 

Key Message:

Never let a temporary lack of capital obstruct your vision; instead, utilize diverse funding vehicles to bring your high-growth idea to life. Equally important is not let failure define your success. As Scott Cook - CEO of Intuit, has shared in his story - he started with bootstrapping, got the to verge of failure and then saw a hockey stick effect in growth.