How much do companies need to start up? Where does that money come from? And, where do they get money for expansion?
The infographic above is drawn from a useful, longer PDF from the Small Business Administration (SBA) Office of Advocacy. If you are thinking about starting a business in the US, here are useful comparisons to other businesses:
- It’s pretty common to start a new business with less than $5,000 at the beginning
- The vast majority of new businesses use personal savings.
And then there’s this sobering statistic: 57% of the businesses surveyed in 2012 didn’t expand when they wanted to, because of either the lack of financing or unhappiness with their growth financing options.
How does your experience fit in with these statistics? Did the U.S. Census Bureau survey leave off some important options?