So you want to start a business?
Saving money and building wealth is a great thing, but building a big account isn’t the ultimate goal. The point of your money should be to use it, somehow. Saving for your retirement is important, and a lot of people also love to consume movies and clothes and jewelry and electronics. Still, some others dream of being producers—founders of businesses.
Saving money to start a business can be a very good idea—businesses can make you rich, or they can supplement income from your regular job, or they might just be a way to throw off the shackles of the Man. Either way, you will need some investment capital to start your own business.
There are a lot of ways to raise capital. You might be able to get venture funding from a venture capital firm, or you might have to ask your family to lend you some money. If you have a lot of extra money saved up, you might be able to fund your startup yourself. And you can also apply for a P2P loan on Lending Club to help get your business idea off the ground.
But how much does it cost to start up your own company? Answering that is a difficult question–it definitely depends on the type of company you are trying to start, the number of employees you will need, and several other factors. However, there are ways to get some solid numbers.
First of all, ask other entrepreneurs. Having other contacts in your chosen field of business is essential—other restaurateurs, for example, will be able to give you the best advice on building a restaurant, especially others from the same area. These contacts are the best bet to mentor you in your own development, and to give you full disclosure on all the problems you will have to deal with.
There are a lot of other resources you can check into, such as business consultants and trade associations. Among the best places to look are business start-up guides or trade articles.
Here are a few articles I’ve found that have a lot of advice about how much seed money you will need:
The top eight resources to total up the necessary startup costs for your business.
A list of some costs to take into account, plus links to online calculators and checklists.
Great article that discusses all the financial issues of a new business.
Wednesday, September 26th, 2007 at 11:21 am