The startup costs will obviously vary from industry to industry, so your company may require more or less funding depending on the situation.
For a small, part-time startup with no equipment, employee salaries, or overhead to worry about, it may only cost you less than $10,000.
Other ventures may cost millions.
What’s the primary source of this funding?
Roughly 565,000 startup companies launch in the United States every month.
On average, these businesses raise $78,406.
Based on the graphic above, the vast majority of this money comes out of the entrepreneurs’ pockets.
The cost of doing business is much higher than people initially think.
Let’s circle back to our business plan for a minute.
All business plans contain a financial plan. This plan usually includes:
- Balance sheet
- Sales forecast
- Profit and loss statement
- Cash-flow statement
82% of businesses fail due to cash-flow problems.
You’ll use these financial statements to determine how much funding you need to raise in order to get started.
You may discover that the number is significantly higher than you originally anticipated.
For example, I’m sure you’ve heard someone say, “That would make a great app,” or “I should make an app for this.”
Do you know how much it costs to make a mobile application?
Even if you start a small app shop with only a few people, it’s likely going to cost you anywhere from $50,000 to $100,000.
And that’s just to make it.
It doesn’t include the cost of running it... (More)