How Much Money Does it Take to Start a Business?

This is an interesting older article from CNNMoney.com.  I would say the one thing that keeps most people from starting their own business is money. How do you know how much you will need and where do you get it.  Surprisingly very few businesses are started with Venture Capital or Angel Funds.   According to this article most small businesses are started using savings and credit cards.

Another interesting statistic,  only 31% of the small business owners surveyed said they started with a business plan.

“Small-business owners spend about $10,000 to start their companies, mostly out of their own pockets, study says.”

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6 thoughts on “How Much Money Does it Take to Start a Business?”

  1. Credit cards – yikes! This is just another lesson in the importance of having golden personal credit. Obtaining a lower-rate small business loan is *much* smarter than financing a startup with credit cards. Having good credit will help you do that, and save you many thousands in interest along the way.

    Llama Money’s last blog post..Prosper and Selling Loans

  2. I started mine with just my time and the cash flow from the business. Granted it grew slowly and I kept my full time job but this option is good for some – especially web based businesses.

    John Hunter’s last blog post..Gen X Retirement

  3. well..I also like to have a small business but I dont have a creditcard and I only have small savings, anybody knows a business with a small capital to start?

  4. Wow! I read ads from so called gurus who say they maxed out the credit cards before they became successful. I thought it was just part of the spill. I can’t believe people are using credit cards. It’s so hard to pay them off. And if you are ever late on a payment, the late fees will kill you. If I don’t have the money, I’m just not buying. I like John Hunter’s strategy above. Doing it slowly as you can afford it sounds better to me.

    Kelli

    become a freelance writer’s last blog post..Hard Lessons to Be Learned in the Magazine Publishing Industry

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