Dear 100 Hour Board,
I see college kids start up their own businesses all the time, whether it be clothing, food, etc. How do they do this? Do they take out loans? Are they rich? Are their parents rich? Does it not cost very much to do this? I would think that manufacturing costs would be pretty expensive...
I have actually wanted to start a business for a while, and I finally have something that I believe will sell. Luckily the business I would be in (apparel) wouldn't require me to get a building or anything like that, so that is a major cost that I won't have to be dealing with. For me the costs would be $5-6 per item, which isn't too expensive. I am definitely not rich and neither are my parents. I'm going to be bootstrapping my business.
Other ways of funding a startup business are:
- Getting a bank loan
- Opening up a line of credit
- Trading equity/services for monetary or other help
- Winning a startup competition at a University or some other event
- Venture Capitalist funding
- Angel investors
- Starting a crowdfunding campaign online
- Asking friends and family to help fund the business
- Combining multiple of the above mentioned options
There is not just one answer, and the "best" option varies depending on a myriad of different reasons. It's also pretty exciting to be involved in starting your own business, although it is not for everyone.
-Sunday Night Banter