How much start-up capital does a typical small business need?
The amount of money needed to launch a solo venture is as varied as the businesses entrepreneurs launch. First, determine how much you’ll need by doing your business plan and speaking with your financial advisors. Armed with this information, you can then make an informed choice to either raise the necessary funds, or scale back your plans to match your current financial situation. Surveys show that many self-employed business people start their business with $5,000 or less — sometimes much less. For many small service businesses, this amount is enough to establish the business, create some marketing materials, and invest in inventory. According to financial advisors, if you’re launching a business that will be your only income source, you should have a financial cushion equal to at least 9 months of income. With this in the bank, you can focus exclusively on launching your business and building a new income stream. For the complete financial do’s and don’ts of small business life, ch
