You will surely learn how to start a food business even with no money by reading this very helpful and comprehensive article.

It reveals very powerful ways and best tips for starting a food business without any money.



According to an article in Forbes Magazine, the importance of small business was stressed as it relates to and impacts the United States economy.

This article states that 44% of all economic activity in America is generated by small businesses.

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Added to the mix in providing a significant impact on the economy is that small businesses provide more jobs, opportunities, and advanced careers.

A segment of small businesses that are found in local communities is the individuals or families that have a love for food and preparing food for others.

These individuals have a dream of providing food service to others by creating a restaurant or food service enterprise.

The unfortunate reality is that many entrepreneurs don’t have the needed resources to begin their successful journey.

Let us, therefore, take to the “kitchen” and look at ways that these individuals can raise money to begin the fulfillment of their dream.


25 Best Ways & Tips to Help You Start a Food Business Without Any Money


1. Research

Before starting a food business company, it is important to conduct your research.

Rather than travel around your city to find out what restaurants are available, you can do a search of restaurants in your community by utilizing a search engine and putting in specific keywords about the number of restaurants in your area.

You can also go to Open Table.

On this website, you will find a listing of restaurants, their location, star ratings, type of cuisine, and so forth.

Also, a significant aspect of your selection of food provided through a restaurant is your understanding of the cuisine and bringing that are at taste to the customer.


2. Budget

A critical step in preparing to start a food service business is the preparation of a budget.

The budget should be fully flushed out as it relates to the expense side of the ledger and what it will cost to operate your food service company.

Expense line items that you should pay particular attention to include:

  • Occupancy (rent, utilities)
  • Employees needed
  • Cost of food
  • Insurance
  • Transportation (if required)
  • And so forth

Determining what your expense side of the budget will be then will give you an idea of what you will need to charge, an estimate of customers needed, add in profitability, and so forth.


3. Competition

In conducting your research, it is important to know how saturated the market is as it relates to the different types of food offered and what their popularity is in your community.

The research should include a study of all of the food service businesses that are in the area that you are looking at with the start of your business.

For example, if you are starting a restaurant, it is important to determine what cuisine you will be involved with or whether your restaurant will offer a variety of menu items that run the gamut as it relates to different food choices.

The different cuisines could include:

  • American
  • Chinese
  • Japanese
  • Korean
  • Thai
  • And so forth.


4. Business Plan

Another important step and tool to help you think through the starting of your food business are to create a business plan.

A business plan is a roadmap of how you want to start your business and all of the elements involved to succeed.

A business plan contains well thought narrative such as:

  • Executive summary
  • Budget
  • Marketing Plan
  • Use of any employees
  • Your mission statement
  • A strength, weakness, opportunity, and threat analysis
  • And more

The business plan will not only help you as the entrepreneur to stay on track and follow the direction that you have mapped out but will also be a quality document when approaching individuals or businesses on possible financial support.

These potential investors will want to see what your plan of action is, how you will achieve it and look to see if the document has considered everything and is well thought out.


5. Business Structure

When starting your business, you will need to determine what is the legal model that you wish to utilize to form your business.

Some of the legal models include:

  • Sole proprietorship
  • LLC
  • SCorp
  • And others

The determination of which structure you choose can involve considerations such as reports needed to be filed, tax issues, protection for your personal assets, and so forth.

The best way to determine what is the best model to form your company under is to conduct your own personal resource and possibly speak to other knowledgeable individuals or a lawyer or CPA that can help you understand all of the ramifications involved with your selection.

To form your legal entity, you are not required to file with your state of residency but can choose other states as well.

Also, to create the actual document and make sure that it properly satisfies all of the state’s requirements, it is best to use a law firm or a reputable online site such as


6. Insurance

A critical consideration in starting and being successful with your food business is to make sure that you have adequate insurance coverage.

We live in a litigious society, and it is important that you protect your business as it represents all of your hard work.

You can reach out to a number of insurance companies and talk to their insurance agents to find out what types of insurance are best suited for your food business service.

Certainly, you will want to make sure that you have general comprehensive liability insurance.


7. Staff

An important consideration in the starting and successful operation of your food service business is staffing.

Certainly, if opening a restaurant, you will need staffing for all of the shifts along with the different appropriate positions that need to be filled by quality staff individuals.

It is important to note that one of the highest, if not the highest, expenses for a business is the staffing or employment expense line item.

This is due to the reality that wages need to be paid, possible benefits, payroll taxes, and so forth.


8. Restaurant Incubator

If your passion and desire to open up a food service business, possibly a restaurant, a way that you can go about creating your business without cash is to utilize a restaurant incubator.

A restaurant incubator is a restaurant space or the kitchen area that provides you with all of the kitchen equipment that you need and is a shared space.

One particular example of a restaurant incubator is provided by Chobani.

Through the Chobani incubator, they provide a variety of resources for restaurant entrepreneurs.

Some incubator benefits include:

  • Capital that is equity free
  • Training
  • Mentorship
  • And a community of other supportive individuals

Therefore, in your community, you may wish to investigate and research whether such an incubator program exists for individuals such as yourself wanting to start a food service program.

Check out the following food related articles for more ideas:


9. Mobile

Another possibility of succeeding with the start of your food business with no money is to start off small.

A possible suggestion in starting on a small scale would be to own a food vending food service cart that you could take to the streets of your city and prepare and serve your delicious food to potential customers.

It is best to check with your local city and community regarding any food serving ordinances, and perhaps all that will be required is a business permit and a license to serve food.

By starting out small, you can build your clientele, your investment money cash and eventually, if you wish, have a permanent restaurant presence.


10. Local Association

Another possibility of starting a business and being successful is to reach out to your local restaurant association and see what opportunities might be available through the members of the association represented by other food service owners.

Competition is always a good thing for all involved, and many other individuals in this line of business and others want to see others succeed in realizing their dreams and achieving their vision.


11. Banking

Financial stewardship and accountability are also critical as it relates to owning a business.

The first order of business would be to open up a separate banking account that handles all of your business transactions.

Also, you would need to find a bank that will help service your specific food business financial needs, which would include after-hour deposits and security measures.

Also, it is important to utilize a bank that has limited, or no fees associated with your banking involvement.

Also, you’ll need to consider an accounting software package that either you or an employee can manage as it relates to income and expenses and generating reports such as accounts receivable, accounts payable invoicing, etc.

Another option as it relates to accounting is to outsource your accounting needs to a freelance bookkeeper.


12. Marketing

An important component of your business plan is your marketing strategy.

This is very critical and deserves special attention as you may have the greatest product or food available in your community, but if people don’t know that your service or food item is there, it will be difficult to be successful.

Your marketing plan should include:

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  • Full use of social media platforms,
  • Being involved with Yelp
  • Creating a Blog
  • Website
  • And so on


13. Buy Existing

A possibility of entering into the food business without any money is to buy an existing food business facility.

You could draw up a contract with the current owner and agree to pay a set amount each month and indicate that in the contractual requirements.

It will also be important to understand why the existing business is being sold.

Additionally, financials that should be asked for to view the strength of the company’s financial situation and its profits would include:

  • The audited businesses’ financials
  • Make sure there are no liens or tax issues
  • And other questions that need to be answered


14. Build Your Own

An option to start your food business would be to build your own facility.

The facility could be a food warehouse, grocery store, restaurant, etc.

The benefit of building your own facility is that you can design it to meet your particular vision and the product that you are providing.

However, this would be, in all likelihood, a more expensive route to go as there would be architectural fees, permits needed, hiring of a construction company, etc.


15. Fire Sale

If there was a circumstance that adversely affected an existing food service company, such as a grease fire in the kitchen, the current owner could have what is called a fire sale.

Perhaps that grease fire was the final straw, and the current owner wants to walk away from the business.

This will be an opportunity for you to buy the business at a reduced cost.

The purchase of a building or business in such a scenario is called an “as is” purchase.

The agreement between the current business owner and you, as an entrepreneur that wants to start a new food business, can use this opportunity and perhaps work with the current owner or the insurance company to work out a purchase agreement that might involve installment payments.


16. Owner Financing

Another scenario that may present itself in obtaining a food business without any money is if the owner is willing to work with you in regards to financing the deal and not utilize a financial institution in order to get their money.

There are a variety of reasons why an owner may wish to do this.

Some of those reasons could include:

  • An illness
  • They may be a relative or a friend
  • Wanting to give you an opportunity to own the business
  • Perhaps they want to retire quickly
  • Etc.

Also, there may be reasons as to why you are unable to work with the financial institution, but the owner wishes to make a deal with you.

Some of the reasons why you cannot work with a financial institution to get a loan could be:

  • Bankruptcies
  • Poor credit rating
  • Etc.

The agreement between you and the owner could be agreed upon, and the terms of the agreement could be incorporated into a binding legal contract that reflects all of the agreed-upon terms.

Also See: How to Start a Hair Business With No Money.


17. Earn-Out

The process of buying a business that is tied to the profits of the company when the transfer is made is known as earn-out.

This way of purchasing calls for a binding contract with the terms being set for an amount of money that is paid to the seller of the food business when specific financial or earning benchmarks are realized.

Specifically, the contract calls for the seller of the business to receive future earnings when the business that is being sold achieves certain financial goals.

Typically the financial goals are in an agreed-upon amount or a percentage of the gross sales or earnings.

In other words, it could be in an agreed-upon amount plus a percentage of the sales within a set period of time.


18. Strength in Numbers

An option to purchase a food service business without the needed down payment or no money at all is to gather together individuals that would be willing to invest in your idea and ability to turn a profit in that particular food business.

This pool of investors will provide the needed money required initially by the business, and they, in turn, through a contract, would receive an agreed-upon percentage of the profits back as their investment.


19. Research Loan Companies

It is important that when looking to start and succeed with a food business with no money, you research all of the loan companies.

Different loan companies have different policies and procedures as it relates to loaning money.

Some loan companies may not require collateral, while other companies may work with the individual wishing to have money loaned to them and use other items that can’t be designated as collateral in the event of the loan defaulting.


20. Unsecured Loan

An unsecured loan is an opportunity to receive money from a lending institution that does not require any collateral.

Typically, an unsecured loan relies upon the individual’s use of credit and has demonstrated considerable responsibility as it relates to being extended credit.

In order to receive an unsecured loan, lending institutions will work with an individual who has a credit score of at least 690 or above, limited credit inquiries on their credit report, and their utilization of their full credit limit is generally at a low percentage.


21. Partnerships

A possibility of obtaining the needed money to purchase a food service business is through the process of partnerships or an angel investor.

There are individuals or groups of people who will lend money to an individual who demonstrates significant business acumen and is able to argue that their business plan will work and that business success will be realized.

This individual investor or group of people will then provide the needed financial support for your business to happen.

In return, they typically want to own a percentage of the company or have a percentage of return on the profits that you make.

Of course, there will be contractual demands that will be captured in a legal document and the expectations to meet those demands are legally binding.


22. Will Work to Own

Another possibility is if you work for a food business and have been with the business for a number of years and perhaps are in a managerial position.

You can work with ownership to see if you can continue to work at the company with the option of working to own.

This particular option allows for you to pay a set amount out of your paycheck each month, knowing that the company within the next few years is going to be sold and with a contract entered into, your money will be set aside from your paycheck and will go towards your commitment to be a part or full owner of that food business.


23. Leverage Buyout

A leveraged buyout is the option to use as collateral any assets that the business will be owning.

If as an individual wishing to start and succeed with a food business, the company that you are proposing to buy, along with assets owned by that company, can be leveraged against any loan or money that you wish to borrow in the purchase of that business.


24. Other Assets

If you have personal assets, you can use those assets as collateral to obtain the needed money for a loan to start your food service business.

Examples of personal assets that you own that can be leveraged can include:

  • A home
  • Vehicle
  • Precious metals
  • Coin collection
  • Artwork
  • And so forth

These items that are utilized as collateral do not need to be sold, but the terms of the loan would indicate that if the individual loaning the money defaults on that loan, then those items of collateral become the property of the lending institution.


25. Small Business Loans

Because of the importance of small business as it relates to the economy of the United States, many understand the importance of helping individuals with business ownership.

Therefore, it would be a good idea to conduct your own research on loans that might be available for start-up small businesses.

One such program is managed through the Small Business Association and is known as the microloan program.

There are varying amounts of money that can be available for the entrepreneur.

To learn more about this program, you can go to https//


Personal Story

When we were living in Canada in the late 1950s, my dad owned and operated a this and chip shop.

Some of the memories that I have of his business endeavor were that not only was fish and chips a weekly staple in our home, but also the restaurant served as our place of residence as we lived upstairs over the restaurant.

The strong memories of the smell associated with that experience bring back many childhood memories even today.

In fact, it was extremely enjoyable for me as often, before we went off to school, we were treated with a donut from the shop that, of course, we would have to share with each of us getting a little bit of the doughnut.

I’m not sure how my father managed to raise the needed money to purchase the shop but often I would hear bits and pieces of the adult conversation as it related to the money that was provided and it was my understanding that my grandfather invested in my dad’s enterprise.

All that to say is when looking to start and succeed with any business, many families and friends will rally with their encouragement and practical support by offering to help with the financing.


Starting Food Business With No Money FAQs


Which Food Business is the Most Popular?

Some of the more popular food business ideas that individuals have been successful at include

  • Food truck
  • Cooking classes
  • Personal chef
  • Ice cream shop
  • Bake goods
  • And more


What is the Worth of the Food Industry in America?

In 2020, it was estimated that businesses associated with food retailing and supplying food were worth $1.81 trillion.


You Can Do It

There are, fortunately, a variety of ways that an individual can raise collateral if they have a good business plan and the business knowledge and drive to succeed.

The important thing is to continue to drive towards your goal and pursue your dream, and in doing so, you are halfway there to being successful in starting and succeeding with a food business.



The role of small businesses and their relationship to the economy in America is profound and impactful.

This important segment of America’s economy, coupled with the important and always enjoyable need for food, makes an individual wishing to succeed in a food business, even with no money, a critical endeavor.

Again, this company has paid $25+ million to members:

SurveyJunkie (only USA, Canada, Australia residents allowed). You can earn money sharing your thoughts. They have already paid $25+ million to their 20+ million members just for sharing their thoughts and opinions. Click here to join SurveyJunkie for FREE

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Apart from being a seasoned Personal Finance expert who has written for top publications around the world, I bring significant personal financial experience. Long story short... through bad financial choices... I found myself $100,000 plus in debt. I was able to dissolve this indebtedness and regain financial solvency. This financial turn around was accomplished through reading, studying and implementing a financial plan. My financial plan included paying down my debt through budgeting, being cognizant of where my financial resources were being spent, changing my attitude about money and understanding the binding chains of the improper use of credit. Today, and for 10 years, I have been debt free and have invested wisely to enjoy my current retirement. This is allowing me to write to help others make, save and grow money wisely!