How much money do you need to start a business?

How much money do you need to start a business?

Starting a business in 2018 has never been more accessible and possible than any other time in history. With the democratization of technology, resources online, lower barriers to entry and a globally connected world, the amount of money you need to start a business is lower than ever.

In the past, starting a business involved thousands to hundreds of thousands of dollars, but today getting started doesn't invovle large amounts of capital for all types of businesses. Starting certain types of businesses and still require large, upfront, and fixed upfront capital. Looking to create the next big pharmaceutical drug? The Tufts Center for the Study of Drug Development estimates the average cost of bringing a drug to market is USD $2.6 billion, but there are other businesses you can start running in a weekend for less than the cost of a new iPhone.

How much money do I need?

You can purchase a Starter Store for $50-150, or a business with cash flow and profits for $1000+. Depending on the size and state of the business you purchase, it may require improvements and an overhaul, or generate passive cash flow right away.

Democratization of technology

Shopify Online Store Dashboard

Getting businesses up and started is easier than ever, and you can now have access to the same tools and technology to run a business that previously was only available to the largest corporations. Shopify’s e-commerce software allows you to sell your products anywhere - whether that be on Facebook, in person, or even on Amazon so you can focus on growing your business.

Resources online

Having the access to tools and technology is not the same thing as being able to use them. Shopify allows you to easily make changes to your storefront, and add additional functionality, but for complicated business needs, you may need to consult an outside expert. Shopify Experts can help in areas of store setup, store design, development, marketing and photography.

Shopify Entrepreneurs is a Facebook group of over 80,000 members sharing tips, advice and strategies forw growing their businesses and is free to join.

Globally connected world

Accept money from anywhere

Running a retail-only business limits your potential business to the number of people that can walk into your store. This limit might be the number of people who walk by and discover your business or the number of customers you can serve at a single time. The number of customers you can serve is limited to a radius around your business, with customers further away less likely to travel long distances to your business.

With an online business, where you are located on has an impact on shipping times, but within the same country or region, the location has little importance to the customer.

When you buy a business and start selling online you are a global business on day one. As long as you ship to their location, anyone with a valid payment method can potentially be your customers. On a Shopify store you can use Shopify Payments to accept popular cards like Visa, Mastercard and AMEX along with others, or offer payment methods like Paypal or even cryptocurrencies.