By | Patrick Frank | www.entrepreneur.com
The dynamics of funding a business have dramatically changed over time. Where once you were resigned to bank loans and savings, there are now many options to choose from to help get your business off the ground.
However, let’s take a step back. You should ask: “What is the minimal amount of capital I need to get this off the ground?” For those first few steps, $1,000 can get you moving quickly and far along. It is all about what I call “resource capital,” a mixture of your time, money and effort.
The price does not always equal the value
As a disclaimer: I am guilty of falling victim to thinking that I had to have the best of the best when starting our company. We always went for the most expensive external partners for operational needs. A hefty price tag could at least give us confidence that we’d be getting exactly what we paid for, right? We found that just because a company spends a lot of time and money on its reputation, it does not mean that it will deliver. We had to learn that going the less expensive route was not always bad.