How much money do I need to start my business?
Obviously, there is no one answer to this. It costs a lot more to open some types of businesses than others. There are too many variables. But there are some basic considerations.
Services businesses are typically much lower in terms of start up costs than a manufacturing operation. So the type of business makes a difference. There are sources for typical industry figures available.
Another aspect is that you need to have more money to start if you cannot provide sufficient collateral for a lender. Or if you have bad credit. If you don’t have good credit and some skin in the game why would you expect a lender to loan you money. Lenders don’t want to take all the risk. Do your homework up front.
Most lenders will want you to invest 20% or more of the start up costs, and they won’t generally be willing to fund your salary for the first year. If that is what you need you will need to find investors who believe in your idea and are willing to take the risk.
Some people do start their business on credit cards, others with the help of family and friends. The key for any business is to figure out how much you need, and what ways you can limit the costs up front. For example, two restaurant owners I know created “members” who paid money up front to get credit at the business and preferred service.!
At a loss of where to start? Drop me an email at Steve_Lovejoy@outlook.com