I think we all see tons of new businesses pop up every day - from new restaurants/coffee shops, to products/accessories, and apps. I guess my question is how in the world were so many people able to secure the capital and distribution required to be a player?
First, I will admit my ignorance - I'm not sure how much a new shop costs. I imagine it's in the hundreds of thousands between rent, construction, inventory, insurance, labor, etc (depending on location). I also don't know how much a new product costs. I would imagine the R&D and prototyping must cost tens of thousands, and then manufacturing/distribution must double or triple the initial development cost. But maybe there is a % deal where you only pay X for every unit actually sold? Apps seem like the cheapest thing to do, since you can develop it yourself if you have the time/dedication, or you can probably outsource it to Russian/India for less than $10k? Shooting in the dark here...I'm sure it depends on the complexity of the app.
Correct me if I'm wrong, but unfortunately a new business venture requires some serious money no matter which way you cut it. No matter how good your idea is, you still need the cash to put it into action.
How is this money raised? I would imagine your options are: 1.) bank/small business loans, but I imagine you can't get much more than 20-50k? 2.) Friends/family, but again how much can most people raise from their own network, I don't think the average joe knows any millionaires, and 3.) VC/PE, but they are prob not interested in small local businesses.
So I'm really scratching my head as to how so many small businesses exist with respect to both entering the market and staying in it! In Los Angeles, I see so many (no disrespect intended, if anything I would LOVE to start one of these) little crummy businesses like vacuum repair, tailors, donut/bagel, auto repair, etc., and I don't understand how they had the capital to begin with to get started (many appear to be run by 1st gen immigrants), and how they generate enough business so many years later to remain in operation.
Maybe I'm making this more complicated than it truly is - is there some board where you can present your idea and they'll bankroll you?? I've never heard of such a thing, but damn I would love to know how to have my own little business, even if it's just a local general store.
[link] [comments]
from Entrepreneur https://ift.tt/2HI8ir7
via IFTTT
$$$http://howmakemoneywithblogging.blogspot.com/$$$
how to make money out of blogging & become a successful blogger
No hay comentarios.:
Publicar un comentario