7 Ways to Boot Strap a Business

Check out Maria Korolov’s latest entry at HypergridBusiness.com about the ways (7 of them) to finance a small business for under $5,000.

From Korolov:

There’s an old saying that 90 percent of new businesses fail within a year, and they fail because of a lack of capital.

Fortunately, that’s a myth. According to the U.S. Small Business Administration, 70 percent of new businesses survive at least two years, and more than half were still in business five years later. And those numbers include companies that shut down for a variety of reasons. In 2007, for example, the majority of companies closed for non-financial reasons — the owner sold the company, retired, died, decided to start a different business, or another reason.

That’s not to say that money isn’t important. Some 42 percent of companies ceased operating because of money. But saying that a company folded because of money is like saying that someone is dead because the heart stopped beating. It may be true that in every single death, the heart has stopped — but the actual cause of death can be almost anything. Similarly, a business can run out of money because of mismanagement, over-expansion, a sudden influx of competition, changes in the industry, and many other reasons.

In addition, just over 30 percent of all companies were founded with less than $5,000 in start-up capital in 2007, according to the U.S. Census Bureau.

To read the full version – and get all the tips – visit: http://www.hypergridbusiness.com/2012/05/7-ways-to-bootstrap-a-vw-business/

 

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