We have all heard the stories about the brand new businesses
that pop up with seemingly very little start-up money, or a heap load of
crowdfunded donations. KH Direct Media looks at how much money does one need
for a start-up.
The first and most basic idea about raising funds for a
start-up is to think small. Don’t immediately think that the invention is going
to be a mega-hit and needs mega money to get off the ground. Test the idea for
the invention in some way to know whether or not the idea is really needed or
wanted.
Estimate how much your expenses will be for the first few
months in development. Write them down. Be liberal in figuring them out. KH Direct Media also suggests calculating any amount of money borrowed with the
interest and include that in all expenses, projected revenue and cash flow. If
possible, try to get started without having to borrow any money from any
source. Work on the prototype, test it with people you know and perfect it
before opening any physical or virtual door. Keep expenses as low as possible.
Keep expectations reasonable. The money needed for a start-up is can be very
little if one plans right, thus leaving more funds available for inventory and
growth.
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