If you’re a budding entrepreneur, you’ve no doubt asked yourself, “How much money do I need to start my business?” This is a question that every single person who has ever started a business has asked themselves, so you’re in good company. While there are different initial costs for different kinds of businesses, here are a few rules of thumb that will help you determine what expenditures you’ll have to make.
#1. Determine What Kind of Business You Are Running.
This sounds obvious, but it’s an important factor. Can your business be run online, or do you need a brick-and-mortar location? Will you need employees, or can you run it alone?
#2. Make Sure That You Know Your Business Well.
If you know very little about the business you want to start, you’ll have a much more difficult time knowing what exactly you should be spending money on. This is especially true when it comes to startups that involve digital media. Many new YouTubers, for example, believe that they need to buy all of the gadgets for their channel: a DJI gimbal, a Canon DSLR, etc. When in reality, if you know what you’re doing, you can get away with shooting it all on an iPhone.
#3. Know How Much Time You’re Willing To Put Into Your Business.
The unfortunate reality is that if you’re worried about how much money you need to start a business, you probably don’t have much money. But what you probably do have is a lot of time. Spend a lot of time “working for free” on your business, and you’ll save on startup costs.
There isn’t a specific dollar figure that will work to start everyone’s business, but if you approach building a business with a clear mind and determination, you can make almost any figure work.