Do only the rich start businesses?! Start Up Capital Watch

Bill_Gates
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So im looking at starting a business after graduating but even for some basic businesses these days you need crazy amounts of start up capital, if you want to see any decent amount of return.

So do the rich only start new businesses?
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c_al
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No, often the poor start up businesses, as they have nothing to lose if it all goes wrong. See Duncan Bannatyne fr example, he got the start up capital by persuading a bank to give him a loan
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gr8wizard10
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Bank Loans are usually the chosen route for upcoming entrepreneurs without an appropriate start-up capital.
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Enoxial
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(Original post by Bill_Gates)
So im looking at starting a business after graduating but even for some basic businesses these days you need crazy amounts of start up capital, if you want to see any decent amount of return.

So do the rich only start new businesses?

The poor can start businesses aswell, you have Venture Capitalist and Angels.
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MagicNMedicine
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There are ways to get start up capital if you are not well off, the advantage that entrepreneurs from rich families have IMO is down to the likelihood that they have someone in their family or social circles that knows what they are doing in the world of business, can provide some informal mentoring and contacts.

There are lots of success stories from people from low income backgrounds that have started up a business and it done well but making a business succeed is tough and it is not the simple solution to unemployment and societies woes that some people caricature it as when they say "whats to stop all the unemployed on council estates from starting up a business....."

Every time someone starts up a business and it fails then someone loses money on it, and usually not just the business owner, there will be lenders, customers, suppliers that may find they don't end up getting back what they have put in, so having a load of failed businesses is not a good thing for the economy.
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Runninground
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You don't need lots of money to start a business. You don't even need to get loans or anything. There are plenty of businesses that can be started for less than £5k. You just need to start small and work your way up.


(Original post by c_al)
No, often the poor start up businesses, as they have nothing to lose if it all goes wrong. See Duncan Bannatyne fr example, he got the start up capital by persuading a bank to give him a loan
He funded the building of his nursing homes by maxing out a load of credit cards too. Pretty sure he was doing it through a Ltd company though so it was less of a risk to him personally.
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Bill_Gates
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yeh sorry should of re-worded it to "are the majority of people who start businesses rich?" lol i'd say so.
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Enoxial
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(Original post by Bill_Gates)
yeh sorry should of re-worded it to "are the majority of people who start businesses rich?" lol i'd say so.
Again incorrect.
It would make sense if you say 'Most capital comes from rich people'
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Bill_Gates
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(Original post by Enoxial)
Again incorrect.
It would make sense if you say 'Most capital comes from rich people'
Ground breaking.
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mohammednazir749
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Hello everybody,

I am 20 years old and I have two part time jobs in big retails.... I have 3 bedroom house on a mortgage (half my dads and half mine). I am also in the process of applying at Manchester City Council for my Taxi Licence. My aim is to become a self made business man. Two friends of mine, there parents own cash and carry and like to talk business retail all the time! They
are saving up just like my self.

There is a off licence shop for sale £20,000 turnover £250,000 net profit £90,000 and I am hoping that they will spill 20k between us £6700.00 each. However, I honestly aint no educated person and would really like to buy a business invest etc... I mean is the owner going to even sell it? Will I be able to run it meaning understanding paper work etec...

Please could somebody help!

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Runninground
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(Original post by mohammednazir749)
Hello everybody,

I am 20 years old and I have two part time jobs in big retails.... I have 3 bedroom house on a mortgage (half my dads and half mine). I am also in the process of applying at Manchester City Council for my Taxi Licence. My aim is to become a self made business man. Two friends of mine, there parents own cash and carry and like to talk business retail all the time! They
are saving up just like my self.

There is a off licence shop for sale £20,000 turnover £250,000 net profit £90,000 and I am hoping that they will spill 20k between us £6700.00 each. However, I honestly aint no educated person and would really like to buy a business invest etc... I mean is the owner going to even sell it? Will I be able to run it meaning understanding paper work etec...

Please could somebody help!

You should really ask an accountant. They will advise you on how the business looks financially.
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Alfissti
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(Original post by Bill_Gates)
So im looking at starting a business after graduating but even for some basic businesses these days you need crazy amounts of start up capital, if you want to see any decent amount of return.

So do the rich only start new businesses?
I started my first ever business venture with near zero capital. I was a student at uni and it was simply a service where I helped people, usually older people get rid of possessions that were off value. I didn't charge them anything, they simply told me the price they wanted for it and told them if it sells for that price I will take 5% and if it sells for more then anything more I get 50%, I asked them for a description, some history and then took pictures, listed it on eBay and shipped it worldwide. As I always sold it at auction and eBay was still a fairly new thing then I sold just about everything at above the asking price with some thing selling for over 500% more than what they had asked for.

Word got around and it wasn't long before I cleared an entire barn that had almost £60k worth of "junk" in it and once even cleared a 9 bedroom house which had lots of stuff in it where everything had to go as the new owners who had inherited it only wanted the land.

It was never true that only the rich can afford to start a business
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Welsh Bluebird
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No. My dad was broke and used a bank loan to start his business and now he runs a company that turns over a lot of money. You can have next to nothing but if you've got the motivation and belief to put in place a solid business plan based on research the bank are more likely to back you and give you the loan you need. He did a lot of research into things and went to the bank with a business plan and they deemed it feasible enough an idea and they backed him. In the long run its worked out great because of the tax he now pays back into the system.
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Kzy
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testing
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UniEntrepreneur
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(Original post by Bill_Gates)
So im looking at starting a business after graduating but even for some basic businesses these days you need crazy amounts of start up capital, if you want to see any decent amount of return.

So do the rich only start new businesses?
Hey Bill,

I got into entrepreneurship with limited resources, so doing things with low capital was a necessity. However, it’s also a wise decision to limit your investment of time/money until you know the idea is going to work. For this reason, it’s a good idea to (1) validate the idea and (2) build a minimum viable product.

It’s usually possible to (1) validate your idea by taking quick/inexpensive actions to get your first orders or users. For instance, for a physical product you might set up a simple site to collect pre-orders before you actually manufacture it. For an App, you could set up a simple landing page for e-mail sign ups to both assess interest and have a list of users to e-mail once it’sdeveloped.

Then (2) build a minimal viable product – the simplest version that allows you to collect the most information from your customers. The purposes of this are to further test your initial hypothesis and refining your product through feedback from early customers/users.

Sometimes it’s necessary to start at (2) to get any meaningful informationabout your hypothesis, but if you’re on a low budget then go for an idea youcan validate most inexpensively. Difficulty passing from (1) to (2) is usually solvable by: carrying on with (1) until you have capital/users for (2) (e.g.collecting more pre-orders until you can get your product manufactured), doing things that don’t scale (going door to door to get users like the AirBnBfounders did) or simply raising investment after sufficient validation.

One of my first businesses was selling 33 piece boxes of kitchenware to new University students. We’ve since expanded have partnerships with 10 University stores (in talks with 20+) across the country the upcoming year and it’s set to turn over a lot. In order to get it off the ground lastyear we followed this exact formula by: negotiating with suppliers for a bulkdiscount, creating a simple e-commerce site, using purely free marketing sources to generate pre-orders, using the pre-order capital to buy stock (securethe bulk discount) and pay for marketing. We collected just over £1k inpre-orders with web hosting as the only cost (£5). We ended up selling out witha net profit over £2k. All this was done in a week, so it’s certainly not ahuge time investment either.
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Opclause
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I think there are so many businesses out there that you can do but only few demands less capital with a great turnover.
The business that I would advise require small capital and you can choose your own working hours. We also offer ongoing support and training, therefore lack of business experience is not a problem. We have helped many people to set up their own recruitment agency and they are now successful business owners.

Grab the opportunity that recruiting industry has to offer and start your own recruitment agency.

Build your future today...

Check out our youtube video:

youtu.be/qaeh8jsWsHo
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