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.”
How Much Money Does it Take to Start a Business?
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
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
At least most people are spending their savings. Especially since about 70% of small business owners don’t even have a business plan, that’s reckless! Their better off not taking out loans if they can even plan a budget.
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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?
dcmax 101, I have a few ideas on my site for no-or very lttle cost businesses, but not particularly internet businesses.
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
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