How much money do I need to start a business?

How a business operates is shaped by the decisions a business owner makes. It’s how he or she decides on progressing the business towards a stable and profitable future. It’s also dependent on how the business owner thinks they need to start a business.

Businesses come in all different sizes. They work towards the goal of satisfying the needs and wants of the masses. Which will create a highly profitable return for them to exploit. Then again, no matter how big or small the business is, entrepreneurs start a business from scratch. It is not considered a proper business until the moment that it has succeeded in making a profitable sale. 

The limiting belief of telling yourself that you can’t start without money keeps you on the sidelines, and away from making the very money you claim to need to start.

You Do Not Need Money To Start a Business! by Billy Murphy

The right decision at the right time

If entrepreneurs hesitate they could miss out. Making the right decisions at the right time will create a successful business. Hesitant to start a business are what most early business owners suffer from. To overcome this, they need to motivate themselves to make the right decisions. Which will further their growth and which will put the business on the right path towards success. When running your business, you will come across problems that will cause you to stop you in your tracks. But you will have to push through these problems if what you’re aiming for is a success.

A business will go as far as its owner. If you hesitate to make big business decisions, then you might cause more harm to your business. Which may affect its productivity and ability to make a profit. Also, it could make it much harder to get the money you need to make business investments.

In my experience, I have seen lots of businesses succeed and fail. The most common problem I see is too much cash flow. With too much cash, entrepreneurs tend to spend money on things the business doesn’t need. In turn, if there’s not enough cash to go around, there’s actually a greater chance for the business to succeed. That sounds backwards!

Too much cash is bad? Really?!

Why is too much cash to start a business is bad?

The decision makers feel the necessity to experiment more and take bigger risks. They invest more money in infrastructure and marketing. Without considering the need for more sales before doing these sorts of things.

When entrepreneurs have a larger fund than necessary in hand, then they make more unnecessary moves. These decisions may not always be the right decisions. They will focus all their assets on making bigger and riskier moves and may often overlook the small things that keep a business running. Although it is sometimes necessary to make risky moves to help your business.

You should instead make moves that are still risky but at the same time smart. Make decisions after calculating every outcome and expense. Check every fact so that you can ensure your business is not headed to the path of failure.

What matters is that you make the right decisions after taking time to think about it.

So how much money do you need to start a business?

The answer is not a lot.

You don’t want to take any risks investing if you still haven’t made your first sale yet. You will think you may be in need of certain things for the business to start booming. But focusing on making those first few sales. You’ll see that the first few customers will mold the needs of the business. 

Proper Investments

Depending on your circumstances, you will be pushed to make various decisions that will impact your business. You will make the tough choices to shape your business the way you want it to be.

For example, when I talk to my clients one question that comes up often is, “Should we spend money on _______”

The answer is always no. The reason why is because it tells me you are on the fence. So part of you wants this new thing for your business, whereas the other part of you needs it. The big secret is that if you really need this new thing than you will not need to ask me. Think about it. You are the one who knows everything about your business. When you are confident it is needed for your business to grow, then you will do it in a heartbeat.

What to do if you have money to start a business?

If your business is infused with a lot of money, I would practice the mentality of thinking you have none. You should consider no money being better than too much money. You’re going to focus more on bringing that money in when you don’t have enough money to spend. That will ultimately dedicate your time to new prospects and formulate a hustle for those sales. 

Entrepreneurs will have to adapt to the changing desires of the consumers. Once your spending is low, it will push your to make smarter decisions to continue your chain of success.

In countries all over the world, there are many businesses that are being born. But without the right leadership and funds, these businesses often end up biting the dust on the path to growth.

There are many things the businesses can do to keep themselves going. If it is not within the owner’s ability, then a business will fail. As there will be no one available to make the right decisions. This will push the businesses to strive towards a successful future.

The more knowledgeable the business is about the market, the better it can adapt. With this information about the market in mind, the business will perform greatly in creating high demanding products. Which also have a greater chance of ensuring a profitable sale.


As you can see, you don’t need much money when deciding to start a business. Once you take the first step, you may find it easier to make future decisions. It’s cheap to create a website and free to create social media content. It’s also free to create videos, build a blog, send an email and make a call.

Doing all these things and making them all align will present your company in a positive way to prospect clients. It’s also a great way to appeal to the public as it shows that your business is open to communication. You will learn about your audience and how you can properly use your skills to satisfy their needs.

Remember, your customers will never know how much money you have or how much money you’re spending on your infrastructure. They only can assume how much money you have with the way you’re presenting yourself and your company. The way a company presents itself shows a lot about itself and its inner workings. The more you command a proper presence, the more your audience will believe it. Which will attract more prospects.

So think about this as you design your company. Make it look like you currently have 1000 customers and million dollars of cash sitting in your bank account.


For an exercise, here is a PDF spreadsheet to calculate your small business startup costs. This will give you a better understanding of the money needed after you start making those sales.

Do you want some guidance on outlining your monthly budget? Feel free to reach out to me so we can game plan it together!