I see 8-10 requests per week from people needing start-up money. And yes, capital is always difficult to find – especially with businesses that tend to use service, information or technology. So, does that mean it’s impossible to launch a great idea? Absolutely not!!
According to the most recent Bureau of Census data, these are the figures for money needed for new businesses:
1% needed $1,000,000 or more
14% needed $25,000 — $999,999
10% needed $10,000 — $24,999
9% needed $5,000 — $9,999
34% needed less than $5,000
26% did not require any money at all!
This shows us that 69% of all new businesses need less than $10,000 to get started. 70% of the people on the street say they would like to start their own business. Why don’t they?
I once worked with a gentleman who wanted to have his own antique business but had no money. In fact, he had filed bankruptcy a couple of years prior to our meeting. We were able to get an option on a lease for a warehouse with no money in advance. He then divided the space into 74 spaces which he leased to vendors, collecting first and last month’s rent. With that money in hand, he finalized the lease, did $20,000 in improvements, kept 3 spaces for his own merchandise, collected 10% commission on everyone’s sales and launched himself into a very positive cash flow from day one.
Source: Crosswalk | Dan Miller, 48Days.com
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