They may also be asking themselves: What’s the price tag for starting a business? That’s the question that Intuit asked small business owners in a recent survey.
Some of the key findings:
- 64% of small business owners start with less than $10,000.
- 75% of small business owners relied on their own personal savings to get started, but 11% relied on financial institutions, 10% on family and friends, 2% from other investors, and 1% from government grants and funding programs.
Has financing a start-up gotten easier since the Great Recession? Only 51% think so; 49% believe there’s been no change.
True cost of starting a business
It may not be measurable in dollars and cents. Starting a business today takes some valuable intangibles:
- Bravery — a small business owner must have the guts to risk it all; there’s no paycheck guarantee.
- Patience — a small business owner has to deal with government regulations and red tape. A café owner may think he or she can open the doors on October 1, but the town, city, or state may delay the grand opening — perhaps for months — with additional inspections, delayed permits, and further document requests.
- Persistence — customers come and go, and it’s up to owners to be diligent in meeting customer expectations while prospecting for new business.
- Luck — perhaps the most important commodity in starting a business is luck. Despite the requisite money, hard works, and great ideas, it’s essential that luck be on your side.
So start with the cold cash, check yourself for intangibles, and get started.
Good luck to new small business owners everywhere!