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20,000 Dollars - Is it Enough to Start a Business?

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Submitted 2011-09-28 21:26:31

I run across people every day who desperately want to start their own business but are too afraid to take the first step. The number one question they have for me is exactly how much they should expect to invest in their new business. The amount of money needed to start a business varies greatly depending on the type of business. However, most new businesses will need a minimum of 20,000 dollars to get started.

This figure takes into consideration several factors. The first and most important thing any new business should do is advertise. No matter how good your products or services are, if no one knows about your business it will not be successful. In this day and age there are many creative ways to advertise for free but there is still no substitute for buying ad space online or in newspapers.

Another thing a new business should use their initial capital to invest in is marketing materials. This can mean anything from business cards to signage to brochures. Though your company will be new, you don't want it to look new. You want your customers to feel you are a well established, professional and capable company. Professionally done marketing materials help create this feeling for your potential customers.

20000 dollars can be enough to start a business if you use your money wisely. The most important thing is sitting down before you get started and writing out a detailed financial plan. This will help you stay on the right track and keep tabs on your expenses.

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