Sure you can apply for a grant but you must know how to write grants, have the time to wait to see if your request is denied or approved, and often the amount you receive is quite small. If you go to government-funded grant greater as SBIR or STTR grants and you accept it, be prepared to document how you spend every penny – and in some cases you’ll have to spend the money first and then ask to be replaced. If the investment money is what you are after just know that you have to surrender percent of possession to earn money and now you set the expectation that you will sell your company really at some point in the future in order for investors to receive 7-10 times more than they invested in you.
No wonder the funding is seen as a major barrier. What if there is a better way to start your own business that does not cost so much? What if you could start a second business with ease and use them to provide a cushion of cash flow for your main business, you are trained to or sunk so much into that you do not want to go? Then you’ll economical ambidextrous! If there, do not you want to know how to get started right away? It does not exist!
There IS a better way! No capital created a business model that is inexpensive to start, inexpensive to maintain, and you can use the cash from it to support traditional business you fund your children’s college fund your home, fund your vacation, contributions to charity – anything you choose.
But what kind of numbers are we talking about? If funding is a barrier for most people who want to start a business, why? How much does it all cost?
For those of you with small and medium businesses already up and running, you can convince us all that you are very used to dealing with numbers with lots of zeros after them. Heck, your electric bill every month may be more than $ 1000 or the bill of your fleet can exceed $ 10,000 depending on how many vehicles you have. If you solopreneur, someone working in isolation, these figures may be scary because you do not spend – or income – many for subsistence. But that’s not why you go into business, is not it?
So let’s look at real examples just to get oriented.
The average initiation fee for a franchise – $ 30,000
The average annual royalties to the franchise – $ 38,000
real estate, inventory, employees, advertising, etc. for the franchise – $ Big Number!
Start-up-up costs for the average small business – $ 50,000 (per Inc. Magazine, Entrepreneur Magazine does not include monthly overhead)
web cost – $ 2,000 $ 100,000
And none of these figures take time into account. It takes time for developers to create your site. It takes time to scout locations and get a lease and everything you need to do for a new franchise or a brick and mortar business. It takes time to organize your gym or nail salon or restaurant or store your home decor. It takes time to find your employees and get your permission if you are building or construction companies, an HVAC company, exterminator, or you are in the trade – plumbing, electricity, etc.
If you work solo, as a consultant or a professional, you still have to pay for and complete all the training and internship, right? Do not forget the time and tuition costs you to first become an accountant, a lawyer, a physical therapist, chef, mechanic, pilot – whatever you know how to do that you have turned into a business. That sort of training runs 2 years to 10+ years depending on your work, cost $ 20,000 minimum, and can easily exceed ten times greater!