How much does it cost to start a company? Study says $109,016
Peter Morgan, AP
Out of 4,928 firms launched in 2004, the average price tag for a new business was $109,016, according to growthology.com, a blog of the Kaufman Foundation.
In the study, the largest amount of funding came from bank loans at 34.9 percent, while 30 percent of funding came from personal savings. Funding from friends and family had a 6.2 percent share in money invested in start-ups while credit cards made for another 6.2 percent of average investments.
“While it is truly a dumb idea to use credit cards as a source of start-up funding, given the ridiculously high interest rates the credit card companies charge, people still do it,” said Paul B. Brown, co-author of "Just Start: Take Action; Embrace Uncertainty and Create the Future," in a blog post for Forbes.
The average start-up costs for companies without employees was $44,793 while home-based businesses averaged a start-up cost of $58,448.
- Stranger donates vehicle to Bountiful...
- UTOPIA mayors looking for alternative method...
- Utah company being considered to stop...
- Dave Ramsey says: Don't make comparisons when...
- 7 benefits of taking vacation time
- Officials to authorize construction on...
- A tough label to chew on: What does...
- Emerging solar plants scorch birds in mid-air
- Raising a kid will cost you $245,000... 11
- Proposed collector natural gas lines in... 7
- Twitter tries to block images of James... 6
- Utah exceeds Gov. Herbert's jobs goal 6
- Dave Ramsey says: Don't make... 5
- A tough label to chew on: What does... 4
- UTOPIA mayors looking for alternative... 4
- Utah company being considered to stop... 3