In a recent survey of 600 small business owners, about one third of respondents stated that they started their business with less than $5,000. In addition, 58 percent started with less than $25,000. The survey was conducted by the financial platform Kabbage,
While this number may seem small, I can attest to the accuracy as my own businesses began with less than $1,000. With such low start up capital, its no surprise that “65 percent of survey respondents admitted to not being fully confident they had enough money to start their business. In fact, an overwhelming 93 percent said they calculated a potential run rate of shorter than 18 months.”
Despite this, many owners were still confident in their success. Money is important, but in alot of cases the experience and expertise of the owner can overcame short falls that would cause many businesses to fail in ruin.
“According to the survey, 82 percent of successful business owners did not doubt they had the right qualifications and proper experience to run a company, even though many had limited cash flow to start.”
When comparing startup needed per industry, “according to the Kabbage survey, the most expensive types of small businesses to launch are restaurants, medical offices, and manufacturing companies. Those respondents claim that it cost more than $100,000 for them to get up and running. Alternatively, those in accounting, online retail, and construction and landscaping were the most likely to get started with just $5,000 or less.”