Almost all entrepreneurs believe they need money to start their business and grow it. And the truth is, YES you do!
The fact of the matter is you need money to make money, and any person telling you differently has never been an entrepreneur or is financially comfortable.
That said, the amount of money you need is really debatable, and only experienced entrepreneurs and mentors will be able to accurately determine what you really need over what time frame.
There are several books like The $100 Startup, that tell you, you don’t need much to start a business. And I agree, to a point …
If you are a 20 something (or these days even 30 something) entrepreneur living with mom and dad, and you have a few hundred dollars, you can start a business simply because your overheads are extremely low or covered by mom and dad. However, if you married with children (or even more challenging, single with children) and have a bond on your house, you need a much larger amount to get started simply because the costs you need to cover each month to ensure your family and children have food to eat and a roof over their heads is much more than that of someone living with mom and dad.
The money you need is not just what you need to start your business, but the money you need (also known as a salary) to cover your personal expenses over the next 9-12 months till your business becomes profitable.
Yes, you need money to start your business. Yes, you need money to grow. The amount you need depends on not only what type of business you starting, but also your personal circumstances.
See the articles “11 Ways To Finance Your Business” and “How Starting A Business Is Like A Computer Game”