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.
- Business community supports tax increases for...
- 5 reasons your most talented employees will...
- Young adults prefer to share chores and...
- After setting iPhone record, what does Apple...
- Balancing act: Organizations slowly move...
- Index indicates Utah economy thriving
- Dave Ramsey says: Make changes to save money
- Michelle Singletary: Making personal finance...
- Lawmakers looking to pump up gas tax... 60
- Business community supports tax... 18
- Utah has fourth largest gender wage... 12
- Greek radical left wins election,... 3
- Knocking doors: What to know before... 3
- US consumer confidence jumps to 7... 2
- After setting iPhone record, what does... 2
- Faith leaders: your secret weapon in... 2