Starting A Business Costs Less Then You Think!
In Inc Magazine this month, they name give statistics on the new INC 500. The most surprising statistic: The median amount it took to start one of the 500 businesses was $75,000. That means that 249 businesses started for less. When I receive business plans, everyone is always looking for a million dollars. What I always say, is that too much money makes you stupid. It does not mean you should be undercaptalized, but see what you can incrementally do on less. We are alot cheaper when we are spending our own money!
Interesting Finds: October 10, 2006
I couldn’t have said it any better! You’re exactly right about every business plan asking for $1mil. I usually say, do it in stages, but “incrementally do on less” sure sounds better. I guess that’s why you write the books
Does it mean you would not invest in business that worth a $ mil.
This is soooooo true!
I am now consulting for a startup to build a business plan and the works. They were looking for a million, then thought that might not be enough, so “Chris, just put 2 millions in the spreadsheet”… and now we are looking more in the 3 millions because of the expenses increase due to the in-cash increase! Come on!
I had to do what I love to do: attitude ajustment!
I broke down the needs in phases, phases in milestones, milestones in deliverables. Step one: you guessed it… 75,000$.
They think I am crazy (which you need to be, right?). I said I am and I gave them a copy of your book. I will mail them your post as well. Thanks!