How Much Money Do You Need To Start Your Own Business? Ask Oleksiy Nesterenko
The biggest question for many would-be entrepreneurs is how much money they really need to start a business. In fact, the number one question we are asked is how to start a business with no money at all. The reality is that it is nearly impossible to start a solid business with NO money, though it is possible to get started on a pretty low budget.
First, consider the type and scope of the business you want to start. Obviously, it is not going to be possible to, say, open a restaurant with no money at all. You need a location, equipment, furniture, food, and probably an employee or two to get that started. But there are plenty of business ideas that do not have that overhead, and some are likely related to the industry you want to be in. For example, if your long-term goal is to own several steakhouses, a low-budget startup might be to become a drop ship distributor of commercial kitchen equipment. Or, you could be a freelance marketing consultant to existing restaurants. Or, you could offer on-site catering for events and dinner parties. Oleksiy Nesterenko says that any smaller idea that doesn’t require a lot of upfront cash can get you where you need to go…eventually.
Second, understand that money and time are inversely proportional in business startup. That is, the more money you have, the less time it will take to get going, and vice versa. Thus, a low budget startup isn’t likely to get you to millionaire status within the next few months, though it very well might in a few years. One of the keys to bootstrapping a startup is finding innovative ways to keep the expenses down. You will likely handle every task yourself in the beginning, from dealing with the legal stuff to answering the phones to working with distributors. You will not only be the boss, you will also be the accountant, the secretary, the lawyer, the customer service representative, the janitor, and every other position your company needs filled.
Third, plan to sink whatever profits you earn back into the company if you want it to grow. While there are many, many ways to market your business for free, they are just not as effective as a well-planned and efficiently spent marketing budget. One well-placed ad will reach more people than your social networking efforts ever will. Consistent marketing through online and print media ads will build your brand, making your potential customers familiar with your business before they even shop with you.
The best bet for determining whether your business idea can be launched with little or no money is to lay out a clear plan. Figure out every cost that is absolutely necessary to get started, and then double it, or triple it, for a legitimate marketing start. Many successful businesses have been started on a shoestring budget. The trick is to understand what that means in terms of choosing the right idea to start with, the effort required from you, and time to profitability.
Still having doubts ask Mr. Oleksiy Nesterenko an expert finance and business development professional.
Oleksiy Nesterenko Startup Finance is offering over 9 years of experience across multiple areas of business including financial planning and analysis, capital raising, corporate finance, business strategy development, and M&A.