money.cnn.com— "Small-business owners spend about $10,000 to start their companies, mostly out of their own pockets, study says."
Aug 17, 2006View in Crawl 4
I'm a little confused about money from venture capitalists. I understand that you approach them with a business plan and then they fund the idea, but what kind of cut do they get? Is their financing usually paid back as a loan with a lot of interest? Do they continue to make a percentage of your profit? I'm sure there are many models, but I'm wondering what is done _most_ of the time.
It does take a lot of balls but it also takes a lot of brains. I've started two companies and each one took their toll on me in different ways. My main piece of advice, if you are starting a company and plan on building a brand, get your company trademarked before making any marketing materials otherwise you'll lose quite a bit of money.And also, don't get frustrated. Let that drive you to success. Remember that 9 out of 10 tries fail, but it only takes that 1 company to do it. Just keep getting back on that horse. And if you already have a job when you start your company, try to keep the urge from quitting until your new company is generating enough cash to keep you going at the most minimum level.Good luck to all you future Digg-preneurs!
I think $10K is a good start for a on-line business. You can work from your home, there is no (real) expensive equipment to buy, and hosted server space is cheap compared to a brick-and-mortar office space.
It also takes a good sense of your calling cause the money takes time to float. As so many people also mentioned -- it takes terrific relationships. people with means and experience will be glad to support and stand alongside people they trust far more that we think. So the money is not always in cash in those first years -- it is also in calling, people and sheer guts. Great discussion -- you kind of sense there are lots os strong firms in the making here!
You can start a business for as little as $20 if you have the time and patients to build it. All you need is a domain name, a hosting account and alot of determination, you can then try exchanging links with other websites to build your businesses search engine placement.. If you hit the top the cash can start rolling in..a good place to begin is <a class="user" href="http://www.link-exchange-forum.com">http://www.link-exchange-forum.com</a>
I started my first internet business on a broken Mac and freeware programs. Here it is for reference. <a class="user" href="http://www.start-cleaning-business.com.">http://www.start-cleaning-business.com.</a> I did eventually upgrade the computer and software, but even then I probably only spent between $1,500- 2,000 for a business that has been paying all of my expenses for 4.5 years. I have since started 3 more Internet businesses. They all make a profit. You have to be competent at communicating through writing in order to make it online. It was a challenge for me and I'm still working on it, but as Ray Kurzweil points out, like it or not, everything is becoming informational, everything! Better get good at disceminating and editing information.
I really think that $10,000 is a fair average but I would say that it is much lower if you are strong, motivated and really passionate about what you are doing.
philukAug 18, 2006
You paid upfront? Guess you wont be making that mistake again.
heyitsmedustyAug 18, 2006
I'm a little confused about money from venture capitalists. I understand that you approach them with a business plan and then they fund the idea, but what kind of cut do they get? Is their financing usually paid back as a loan with a lot of interest? Do they continue to make a percentage of your profit? I'm sure there are many models, but I'm wondering what is done _most_ of the time.
zarexAug 18, 2006
That's a dumb strategy. They OWN you when you do that.Getting VC should be a very LAST resort.
dailyclerkAug 18, 2006
It does take a lot of balls but it also takes a lot of brains. I've started two companies and each one took their toll on me in different ways. My main piece of advice, if you are starting a company and plan on building a brand, get your company trademarked before making any marketing materials otherwise you'll lose quite a bit of money.And also, don't get frustrated. Let that drive you to success. Remember that 9 out of 10 tries fail, but it only takes that 1 company to do it. Just keep getting back on that horse. And if you already have a job when you start your company, try to keep the urge from quitting until your new company is generating enough cash to keep you going at the most minimum level.Good luck to all you future Digg-preneurs!
carnthAug 18, 2006
I think $10K is a good start for a on-line business. You can work from your home, there is no (real) expensive equipment to buy, and hosted server space is cheap compared to a brick-and-mortar office space.
ellenweberAug 20, 2006
It also takes a good sense of your calling cause the money takes time to float. As so many people also mentioned -- it takes terrific relationships. people with means and experience will be glad to support and stand alongside people they trust far more that we think. So the money is not always in cash in those first years -- it is also in calling, people and sheer guts. Great discussion -- you kind of sense there are lots os strong firms in the making here!
ozonew4mSep 4, 2007
You can start a business for as little as $20 if you have the time and patients to build it. All you need is a domain name, a hosting account and alot of determination, you can then try exchanging links with other websites to build your businesses search engine placement.. If you hit the top the cash can start rolling in..a good place to begin is <a class="user" href="http://www.link-exchange-forum.com">http://www.link-exchange-forum.com</a>
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pixelinkJul 3, 2008
I started my first internet business on a broken Mac and freeware programs. Here it is for reference. <a class="user" href="http://www.start-cleaning-business.com.">http://www.start-cleaning-business.com.</a> I did eventually upgrade the computer and software, but even then I probably only spent between $1,500- 2,000 for a business that has been paying all of my expenses for 4.5 years. I have since started 3 more Internet businesses. They all make a profit. You have to be competent at communicating through writing in order to make it online. It was a challenge for me and I'm still working on it, but as Ray Kurzweil points out, like it or not, everything is becoming informational, everything! Better get good at disceminating and editing information.
Closed AccountOct 6, 2008
here is mine <a class="user" href="http://fatbikez.com">http://fatbikez.com</a> and <a class="user" href="http://astawerks.com">http://astawerks.com</a>
covilleJan 5, 2009
Hi. May I ask what business are you doing? :)
mssmallbizApr 27, 2009
I really think that $10,000 is a fair average but I would say that it is much lower if you are strong, motivated and really passionate about what you are doing.