How Much Do You Really Need to Start an Online Business?

Entrepreneur 2 Comments

Seed MoneyThe old saying is you need money to make money, but is that really true on the internet? To a degree it is true; it definitely makes it easier to create a site, hire extra help and market the site if you have the cash to throw around. But, I feel it’s equally feasible to launch a site and market it with very little cash, it’s just require a bit more hard work.

With a very small amount of money, a great idea, and some creativity you could launch the next big internet startup. Kevin Rose did it with Digg, when he started it by hiring a programmer off of elance.com to create the site for $200!

On the flipside, Guy Kawasaki used over $12,000 to create his web 2.0 startup, Truemors and meticulously outlined all of his expenses. However because he had the money, he was able to outsource the website’s development, hiring lawyers to cover any future issues, and registering a ridiculous $1000+ in domain names.

And even more recently, I was watching a new show on TLC called “How to Make Money” and they followed two guys trying to develop an internet startup and they were looking for $500,000 in venture capital. Their website is footycs.com and well to me the website doesn’t look like it’s worth anymore than $100.

The proof is here that no matter if you have the money or not you can succeed and create an internet business capable of generating a lot of revenue as long as you have a solid idea that you truly believe in. And that leaves a lot of hope for us little guys just starting out in the internet arena.

I’m planning on launching a project in the coming months and I don’t expect the project to cost over $500 to launch. I plan to do the programming myself and possibly outsource the design work. The rest of the money will be put towards advertising.

Which brings me to my question: How much have you spent starting your online ventures?


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    1. 1 Crafty Entrepreneur June 21, 2007

      Wow! You are generous! I thought that their website looked worth about the $9.95 that they paid for the domain name. The show had great potential, but it’s too bad that they had featured such morons. I guess if nothing else, we all learned what not to do! Right? Good luck with your site! If I can offer some advice, just try and learn as much about the design aspect as you can, so if something isn’t how you want it, you don’t have to rely on a designer to tweak the little things.

    2. 2 » 5 Ways to Start Your Business Cheap by Erik Karey: Internet Entrepreneur July 16, 2007

      […] costs can eat into a businesss initial profits and make sustainability an issue. I discussed how much money you need to start a business before and feel that you can there are a number of areas where costs can be cut or even […]

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