CNN has a cool article, Air Force vet turns to dogs for cash. Lori Lawrence wrote a very detailed business plan. Originally, she thought she needed $147,000 to open. But in the end, she reduced her start-up costs to $35,000, with help from the Small Business Administration.
Entrepreneurs who want to start a business, especially one which requires capital investment like a storefront or specialized equipment, sometimes think they need a lot more cash than they may really be able to get by with. If Lori Lawrence had continued to think that she needed $147,000, she would've had to walk away from her dream.
One of my students from a few years back (i.e., before the economy recessed) wanted to start a bakery in San Francisco. Originally, she needed a whole wad of cash - five zeros worth. But her lack of access to capital forced her to re-think. Through careful consideration, she realized that she could purchase much of her equipment used. In addition, she realized that she could actually *outsource* part of her manufacturing needs, by carefully finding the right vendor who shared her values in food preparation.
So take a look: are your start-up costs too high? If so, can you be creative in reducing your costs? How? If you've got a good idea, share it - someone else may be able to use it too!
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2 comments:
You are right, right now we really all have to think out of the box to bring not just start up costs, but basically everything down. There are, thankfully, a lot of business avenues available for startups, but as with any undertaking, remember that there are pros and cons and risks involved.
Hi there. When I started my clothing business a few months back, I jumpstarted it online. Using a web site, I did business exclusively online for three months. It was sort of testing the waters for me and then I ran surveys and polls. Three months later, armed with knowing what my customer liked, I started constructing my physical store, helped by the money I got online too!
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