Is it possible to start a photography business without a studio? Absolutely! When my wife started getting some photography jobs, she thought that she would eventually have to rent a space and set up a studio. She was just looking to supplement our income and didn't want the overhead of rent and utilities.
Taking pictures of high school seniors is what my wife specializes in. She will meet them at a location of their choice (as long as it is within 20 miles). Most people like to have their pictures taken with a scenic background like a waterfall, beach, flower garden, or with a lot of trees when changing colors in the fall. The same can be said for engagement pictures.
If it is cold and snowy where you live in the winter, there are a lot of places you can rent out (try to recoup some of the cost with your sitting fee). Check out your local community center, zoo, or even a church.
Another advantage of not having a studio is that you won't have to purchase all of the expensive equipment that goes with it. Lighting equipment and backdrops can be costly.
After you gain some experience and start making some money, you can set up a studio in your home. That way you can get comfortable with using lighting equipment and backdrops.
You can start a photography business without a studio full of fancy equipment and have the freedom of no overhead costs. A studio might be a goal of yours down the road but for starters, just keep it simple.
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