It depends on your type of business and how quickly you plan to expand. You should sit down and write out how much your expected expenses will be for at least the next 24 months and how much you project to bring in as far as income on a monthly basis. There are several companies that can help you get started with funding your business. Try to Google "strong business credit", just like that in quotes.
Financing for a Small BusinessObviously this depends on the type of business - retail, service, consulting, etc., but as a former owner of two fairly successful book stores, I can't claim to have followed my own suggestions to others. I got lucky in both situations and "disproved" my own rules of thumb, which follow (for retail businesses only):1. Determine the best location for the type of retail business by looking at other successful businesses of the same type.
2. If a street corner location is desired, note WHICH street corner other businesses of the same type occupy. Some corners are better than others, depending on the flow of day or night-time traffic, usually AFTER the traffic light in the direction of the main flow and very visible to passers-by. Follow the old rule of success in business: location, location, location.
3. Find the lowest possible rental space for the desired area and negotiate a short-term lease (6 months, if possible) because if your business fails before your lease is up, you will be liable for the balance of the term of the lease.
4. Determine, if possible, what kind of monthly sales other businesses of your type have. This can be in dollars or in product volume. Either figure will give you the needed information for determining your bottom line.
5. Determine what the monthly cost of utilities (if not provided in the lease) will be.
6. Find the lowest cost fixtures possible. There are businesses in large (and some medium sized) cities which specialize in theses items. Counters, display cases, registers, etc. can be had used, which defrays the initial cost and allows for other necessary expenses - like more inventory.
7. If your retail business will need more than yourself (or family members) to run, then figure out how many employees you might need to start. Use the lowest figure possible. If it's an immediate success you can always hire more as needed. Figure on spending at least 50 hours a week on the business yourself but NO MORE THAN 70 hours a week. Any less than 50 and you're not spending enough time to develop the business. Any more than 70 and you'll burn out very quickly.
8. Figure out how much and what variety of stock you'll need to meet your projected demand of a full fledged business (look at #4) and then cut that by 1/3 or 1/2, but leave enough to make the shelves look reasonably well stocked. You won't be selling as much as the established businesses at first but you need enough to meet initial demand.
9. Now start adding up those figures and then multiply that by 3 months' worth of costs.
10. If at all possible, start off with your own money, NOT a loan from family and definitely NOT a loan from a bank. Get a government grant if possible. Failed businesses often force people to go into bankruptcy and that's not a pleasant experience. It can also ruin families, so start off with money that you could put into a slot machine and never miss if you lost it all.
Those are my general rules of thumb for start up costs. You need to be able to plan on having NO sales at all for the first three months as a kind of buffer. You have to be able to pay rent, suppliers, employees and cover any costs for your own support for a minimum of that amount of time because it will take at least that long before you build up a client/customer base that will carry you through the next period of establishment and growth.
If at all possible, have another income to rely on while you're going through the initial phase of business. You (and your family) need to be able to eat and pay rent/mortgage on your own while this is beginning.
Advertising: there are many ways to cut costs and still make people aware of your existence, so this is a large variable. Use the Internet while it's still reasonably cheap with e-mailings, and a website (with many search engine submissions).
marketing and communication tools, create interest, educate and interact with your customers to buy and talk about your products or services.
Try to pick a name which will appear in the phone book as close to the beginning of the yellow pages listing as possible. The phone book advertising company offers one free small type listing. Accept it and go for a larger one ONLY when you've established yourself after one year, not before. A large monthly bill for a listing which advertises a business which went belly up after 3 months will follow you around for the rest of that year. There are many other ways to attract attention, like flyer's on cars in parking lots (check local regs) or radio Talk Shows about your business. Do it as cheaply as possible, but count on at least 5% - 10% of your start up costs if you're not resourceful and have to hire outside help.
Now, my own experience: I started a small NEW bookstore next to a larger, well-established USED bookstore in Las Vegas with only a $4,000 budget. That included rent, stock, fixturing, the works. It was paying for itself 6 months later. I then left for personal reasons and my partner went out of business within 3 months after hiring thieves, but at least recovered the initial investment, even after losses.
I opened a second bookstore in a very small town in Utah which happened to be halfway between two major National Parks (Zion/Bryce - Grand Canyon). I took advantage of the tourist traffic and was able to start up for about $1,000 in stock (my own money) and had the business paying for itself and my own rent and expenses in one month. Two years later I was able to close it down with enough set aside to live for several months while working on another, more lucrative financial project.
Those were both prime examples of "Location, location, location". There are things to say about creating a demand for your business, but that's another question on this board.
Here is more opinions and answers from other FAQ Farmers:
--To the excellent discussions already given, I would add only this note, which is implied in the remarks of others: You will need more money than you thought you would need, because many small businesses, perhaps most, fail as a result of under capitalization.
The exact cost to start a business is $408.80 with your monthly overhead just under $70.00. I have over 35 years experience in this field, read my profile. This includes your website, all accounting and everything you need to get going along with personal help every step of the way. This company is ranked in the top 25 fastest growing companies in the world by Forbes, has the highest rating by Dunn & Bradstreet, is 100% debt free and is getting ready to break Microsoft record of reaching 1 billion in sales. Not to mention rated by the BBB (Better Business Bureau).
Hello, The first answer touches on some key elements but to answer your question specifically the answer is $408.80 to be exact to start your own business wth a monthly overhead of $70.00 that's it and you are teamed up with a company that is rated by the Better Business Bureau, 100% debt free, ranked by Forbes as one of the top 25 emerging companies of the decade, has the highest rating by Dunn & Bradstreet and is getting ready to break Microsoft's record of reaching 1 billion in revenues.
How much money you need to start and run a business depends largely on wht tye of business you want to own. There are many factors involved in a business operation. My first bit of advice is this: PLAN PLAN PLAN! If you fail to plan, you plan to FAIL!
Is it a home based business? If so, then the overhead (rent, utilites, etc.) wont bemuch of a factor. Will you need Employees? Do you know how you are going to go to market, reach your customer? If you are unsure about how to plan, find a mentor. A small business operator that you can ask questions to. Someone you know, and can trust their advice.
The biggest mistake in small business ownership is providing a service or selling a product, and then immediately taking ALL the profits back out. This leaves no room for taxes, equipment, advertising, and most importantly . . reinvesting in your business.
21,000
The amount of money an individual needs to start a business depends on the size and type of business the individual wants to create. Advice on this is available from a local bank or a consulting firm.
how much money do i need to start a daycare?
It depends on many thing but you need money for staff(unless it it is a family business), the location, proper storage, supply's, seating, and for the proper permits
I would say it should take about $50.000
About Tree fiddy
21,000
20000
i need about 400 gh
At least RS10000
I need 100.000.00 kina in papua new giunea currency to start my small business. this will be are grate help. ta
In PAKISTAN you need 15-20 lac to run a healthy profitable business of poultry..
The amount of money an individual needs to start a business depends on the size and type of business the individual wants to create. Advice on this is available from a local bank or a consulting firm.
How much money you will need to start a business selling products depends on several factors. These include what you are selling and to whom, whether you are selling your products in a physical store or online, how many staff you will have, if any.
how much money do i need to start a daycare?
It depends on many thing but you need money for staff(unless it it is a family business), the location, proper storage, supply's, seating, and for the proper permits
it can varie depending on different things