Not that long ago, if you wanted to start a business, the cost was so prohibitive that you had to go to a venture capitalist and agree to give them a sizable percentage of your business in addition to the repayment of your loan. Times have changed.
Nowadays, many companies get their start in a basement or a bedroom. Armed with a computer and Google they can eliminate the middleman and go directly to different suppliers. With the use of different software programs they can keep track of their inventory, their IRS records, and almost everything else.
If the entrepreneurs are really creative, they can do their own advertising and market their own business products on the Internet without having to pay a thing. Between YouTube and the social media sites, they can reach millions of potential Internet customers before there is a need to move to a brick and mortar building.
One of the greatest advantages the startup entrepreneur has today is that if his company can get its start on the Internet, he can eliminate the cost of renting an office or a small shop. He can also eliminate the cost of carrying a large inventory and hiring employees, at least in the beginning until he can see if his business has a chance to succeed.
Most businesses don’t hit the ground running. It takes at least two years to get in the black and, if you keep investing your money back into the business as most businesses require, it takes many more years before you can draw a livable salary.
In the old days, a large percentage of the businesses folded within the first year or two because the entrepreneurs underestimated how much capital they would need to get it up and running, and how long it would take to become profitable, or even get in the black. There was no Internet so many hopeful businessmen started with a dream and ended with a nightmare.
Even today, with so many resources available for free on the Internet, you still have to have a good business plan, a realistic approach to business, and the determination to stay the course even when things are not going as smoothly or as swiftly as you would like. If you work hard and have patience, your new business can succeed.