All businesses are not created equally – and that goes for the amount of funding that may be needed to get your new company off the ground. For example, in some cases, it will be necessary to purchase inventory and / or equipment, as well as to rent (or buy) office space to house your company and its belongings. But, even if you are able to qualify for a nice amount of funding, how much should be considered “too much” to spend up front?
The answer to that is it depends.
For example, in some cases, an initial amount of product inventory will be necessary. Likewise, if you offer certain services to customers – such as landscaping – then it will be necessary for you to have at least some type of equipment. (In the landscaping example, it can be difficult to cut grass without a lawnmower!) In other instances, though, when offering an online consulting service for instance, your overhead and other expenses could be quite a bit lower. This is especially the case if you start out working from home.
What type of business have you started – and in turn, were your initial costs seemingly high, low, or just right in order to help get your company running over time?
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