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Start Your Own Business On A Budget

Written by: Chris Simpson

Article Overview: If you have been feeling disheartened about the fact that only ten percent of new business startups survive, there is hope yet. It is surely nothing but a myth as Dun and Bradstreet reports that more than seventy-six percent of people starting up a new business are in business for more than two years.

Start Your Own Business On A Budget

If you have been feeling disheartened about the fact that only ten percent of new business startups survive, there is hope yet. It is surely nothing but a myth as Dun and Bradstreet reports that more than seventy-six percent of people starting up a new business are in business for more than two years.

Yet these numbers may not reflect the true scenario as many people often don't inform their licensing offices when they shut down. However, these figures may provide us with an approximate idea of the chances of a business surviving.

It has also been observed that if you have more cash to invest when you start a business, there is a greater likelihood of your business surviving. Other factors that are involved in survival are the age of the owner, the owner's level of education, and whether the owner has any domain knowledge of the business. A common factor that causes most businesses to shut shop is a lack of proper planning. And improper planning generally results in improper financial choices from the very beginning.

It is a common belief that starting a successful business means investing a large sum of money, and for that you need to take a large loan. These large loans are usually perceived to be very risky business loans that have a high rate of business or will require you to mortgage your house.

However, this is a mere misconception and almost a quarter of businesses started up did not require any money. Statistics go on to say that barely a quarter of the people starting businesses borrowed money and thirty six percent used their personal savings to start a business. Also, close to seventy percent of new businesses were started without borrowing any money.

If start up funds were the only criteria for a business surviving or failing, then things would be a lot simpler. You also need a strong enough determination to succeed and not let setbacks get you down. You also need a desire to innovate.

A lot of people spend more time planning their vacation than running their business. This shows a clear lack of initiative and desire to succeed. Also, a lot of people don't take into account how they will meet their personal expenses while their business is in the process of taking off, so they soon have to quit.

You should not go overboard on spending the money you have to invest in your business either. You don't require more than $5000 to start a business, for more than thirty-two percent of successful businesses were started with that amount. If you start off not owing too much money to other people, then you have a much greater chance of breaking even faster.

Your business idea should also be in proportion to the amount you have to invest. You should concentrate more on innovation and reaching out to more people than building a big establishment at first. Start out by investing in a $15,000 coffee cart rather than a $400,000 main street store. This way you can make your idea succeed rather than spend your money uselessly.

To succeed at any venture you need proper planning and research, followed by innovation and determination to see it through the tough times. Best of Luck!

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Article Tags: approximate idea, business loans, business startups, common factor, domain knowledge, dun and bradstreet, dun and bradstreet reports, financial choices, likelihood, misconception, more than seventy, myth, new business, new businesses, personal savings, risky business, setbacks, seventy six, starting a successful business, sum of money



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