How Much Does it Cost to Start a New Business?

The cost to start a new business really depends on the type of business as starting some obviously costs more than others.  A recent survey by the Kauffman Firm suggests that the average capital needed to start a company is $109,016, however for firms without employees and home-based firms this number ranges from $44,793 to $58,448.

So where does the majority of start-up capital typically come from?
Banks and other loans – $38,059 or 34.9%
Personal Savings – $32,658 or $30%
Friends & Family – $6,910 or 6.3%
Credit Cards – $6,756 or $6.2%
Angel Investors – $6,350 or 5.8%

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