Saturday, May 23, 2020

CHARACTERISTIC #6–LOW START-UP COST

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CHARACTERISTIC #6–LOW START-UP COST

You must be able to start a 
business with a few thousand 
dollars, not millions of dollars. If a 
business requires millions to get 
started, it means you have to go 
out and raise capital. NOT that 
raising capital is bad, but to do so, 
you have to give away ownership 
and equity. Plus it takes you much 
longer to recoup your investments.

On the other hand, if you only 
spend ten thousand dollars 
starting a business, you only have 
to make ten thousand dollars in 
profits to get all your money back. 
After that, it’s all gravy. Once your 
business grows to a certain point, 
you can bring in outside investors 
if you want. By that time it’s easier 
to raise capital and you don’t have 
to give away as much equity 
because you now have a proven 
business model.

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