Friday 11 November 2011

Start-up capital is absolutely necessary.

I started my business with €2700. I didn't have a choice. It was either start the business, or let the idea fade back into the ether. That was force of circumstance. Preferentially, I would have started with €12 000.

There is no such thing as starting a business with no capital. It's nonsense perpetuated by myths of great fortunes earned by self-made people. While these myths might be true in part, those entrepreneurs certainly didn't get there without some measure of capital and/or cunning.

A lot comes from peoples attitude to money. A penny is still money and every penny counts. People spend their lives putting €100 000 together to buy a house, now imagine trying to put aside a mere €5000 to start a business "with nothing", it's very hard and a huge gamble for most folks.

I can't say what the right amount of capital is, but it's more than the minimum, but not enough tobecome complacent. I have found that using the minimum is risking a lot time and effort.

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