Back

Current + Past Business Owners: What is the mimum amount of money you need to start your business?

anneepark1'sanneepark1·Dec 17, 2021
Posted in:AdviceResourcesMoneyCareer Growth

How much capital did you really need to start your business? Did you self-fund, bootstrap, or fundraise? It'd be awesome if you could also include what type of business and industry your business is in. Thanks so much!

tanmayisai'stanmayisai·Dec 17, 2021
It depends on the type of business and the size of the business. I had a side-project business that is a newsletter+social accounts for hiring, it costs $9/month for web maintenance and $100/yr for domain and miscellaneous hosting costs.
anneepark1'sanneepark1·Dec 18, 2021
Ah, that makes a lot of sense. Did you ever raise any money for your business? Take on a loan? I l'm finding that most womxn-led business bootstrap or take on loans.
Ray29·Dec 20, 2021
Hello, realistically save up 3-6months of what your normal salary would be - as you likely won't make money for that long while you are getting set up. Def depends on the business you are starting (I'd recommend a service-based first! Low overheads)1. Service-based business (eg, branding & graphic design for start-ups) - about $3000 to set up (domains, email, website, social media, initial capital to pay suppliers) + living expenses until your first clients. 2. Product company - I've been building a B2B SaaS and it's taken around £25,000 so far after bootstrapping for 12months and we aren't generating revenue yet as the sales cycles & product dev take longer so had a year's worth of expenses saved up. I'd avoid taking on loans if possible as start-ups are so risky at this stage, especially if it's your first business. Look at what grants are available as it's essentially free money you don't have to repay if you fail, or if you can access to an angel investor prior to tax time - that could also be good. My first business (service-based) actually ended up getting funded by an angel (£35k). I know we hear stories of 'how this business owner turned $100 into $100,000' but I just don't think it's realistic so wanted to be more transparent. I'd also recommend not leaving your job until your other business has started generating enough revenue to replace your salary - as then you know you've achieved product-market fit and have a viable business. Good luck!
FAQ∙Who's Hiring∙Posts∙Resources∙Terms∙Privacy∙Sitemap∙© 2024 Elpha