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Steve
01-07-2007, 12:45 AM
How much does it cost to start up a business?

Kind of interesting to see how much it costs.

Were you within the median amount? Or were you higher or lower?

Launch your own business: 5 ways to get there (http://money.cnn.com/popups/2006/moneymag/ontrack_business/2.html) - 35% of small business owners got started with less than $5,000. Only 10% invested at least $50,000.

http://i.cnn.net/money/popups/2006/moneymag/ontrack_business/started_with.gif

JimAdams
01-07-2007, 05:53 AM
For a mowing business, if you have a usable truck, $5,000 is plenty to start with. That'll buy a trailer, a 36" walk behind mower, a trimmer and a blower, with a fair amount left over for insurance and advertising. We started with less ** garage sale equipment and a gallon jar of bartending tips, which amount to about $400. For a while, we collected for jobs as we did them.

Jim

KimKriel
01-07-2007, 09:38 AM
Like Jim we started up for under $300.00 with equipment we or family(free) had. *This past fall after I recieved a thumb injury using a pair of garage sale hand clippers(because I dont like those powered things). Which hurt and old nail *still has not fall fell off. *I got a new one. *We purchased our new mowers and a few other pieces of equip this fall. *Still have to get a different trailer (bigger) before season starts.

Steve
01-07-2007, 04:20 PM
It's amazing when you think about how little you really need to spend to get started and then you look at some lcos who start off with all new equipment and a load of debt.

It's difficult enough to compete in the business world. The last thing it seems you want is to saddle yourself with debt when your competitors aren't.

Mow Right
01-08-2007, 07:03 PM
I started with a $60 push mower dad bought me, and my dads 13 yr old gas trimmer. Although I called it a business at the time, it really wasn't. In some peoples views I have just went into "business" this year.

As you can tell I've expanded quite a bit since then.

When I start another business I am figuring my startup will be around $.35M -.5M


EDIT:

Quote[/b] ]It's amazing when you think about how little you really need to spend to get started and then you look at some lcos who start off with all new equipment and a load of debt.

It's difficult enough to compete in the business world. The last thing it seems you want is to saddle yourself with debt when your competitors aren't.

Although I am not for buying new equipment. I would say that $10.5k would be a nice startup cost for a LCO. Enuogh to get a decent 1/2 ton truck (4000), used a 60" ZTR (5000), and a trailer (1000). Plus 500 for a trimmer and blower.

Those that start with a debt, are normally in a whole different market than those of us starting with push mowers. If they can pay their debt in the first year of business, they are ahead of the game.

John/Logo-Mechanix
01-09-2007, 10:24 AM
I figure I started my business, graphic design, not including my education for about $4,000.00.

Computer: $2,000.00
Graphics programs: $1,500.00
Decent printer: $500.00

dutchhook
01-09-2007, 05:40 PM
How much does it cost? I started mine with $8,000, got a loan for $65,000 and started with 5 trucks my first month. There are no dollar amounts for starting a business, but the most important thing to remember is that starting with too little cash can cost you everything including your own assets, reputation and even relationships and that having excess cash gives you all of the options to be a fantastic success. You might be able to earn a 20-30% profit, but it's possible to lose 100-200% with a lawsuit, or other mishap. I'm not discouraging you from getting in. Jump on in, the waters fine! Just remember, "Cash is King".

Steve
01-09-2007, 05:50 PM
Quote[/b] ] and started with 5 trucks my first month.
WOW! What made you start so big in the first month?

AMW Graphics
01-09-2007, 05:53 PM
My lawn biz.. about $10k over the 1st year but the 1st 6 moths about $800. but have sold everything more or less, and closed it after 7+ years.

Pressure cleaning biz...about $12K..but it was a little easyer since i all ready had the lawn biz. but i probly have 2-2.5 times that in it right now. (6 years-curent)

Graphics biz.
Start up..$15k
Curently have min. $33K (besides stock)
(heck 1 software program we use is *over $4k alone.)

dutchhook
01-09-2007, 09:19 PM
The reason I started with 5 trucks was mostly that I was too naive to even consider I could fail... It worked out pretty well. The other reason was that the banker would only give me the 65K if I could sell 400 lawn care accounts and 100 mowing accounts in the month of February (residential) which we exceeded with a little to spare. Had to start a sales room and sell lawn services during the snow season. Wish it was for a more inspiring reason, but it wasn't...

John/Logo-Mechanix
01-10-2007, 10:08 AM
Some of those programs can be pretty expensive Tony, I can sympathize with that. That is probobly one of the reasons I get a little cranky when I get the customer who says "well my nephew does logos and he's only 16. I always want to say, remember that when you take it to the screen printer to be printed in 3 colors and all you have is something created in Word. I have spent many, many years learning some pretty complicated programs, not to mention the art of typography as well as illustration and how the printing process works so when I design a brochure or flyer it prints correctly.