| Starting a business is easy according to some | | | | seed money you'll need will be much less than if |
| people. Just pick a name, order some business | | | | you plan to become a "virtual assistant," for |
| cards, letterhead and envelopes, get a separate | | | | example. That's one of those out-of-office long |
| phone line for the business, and open a checking | | | | distance administrative assistants who provides |
| account. But until you identify every item involved | | | | secretarial services to several businesses from a |
| in starting your specific business, you won't have | | | | central location. As a VA, you'll need at least a |
| any idea how much seed money you'll actually | | | | computer, several phone lines, fax and copying |
| need. | | | | machines, perhaps even a scanner, external hard |
| The number of dollars needed to start a business | | | | drives, special software and more. All of that will |
| is not the same for every business. For example, | | | | cost more than what the fiction writer needs to |
| because of the expense to incorporate, it costs | | | | start a business, much more than the painter |
| much less to structure your business as a sole | | | | requires. |
| proprietorship than a corporation. But being a sole | | | | But in varying amounts each of those three |
| proprietor may not be the right type of legal | | | | businesses will require additional money to cover |
| structure for your type of business. That's a | | | | operating expenses until they reach breakeven. |
| matter for you and your lawyer to discuss, the | | | | That's the point at which a new business |
| right legal structure and the reasons why. | | | | generates enough cash to pay all of its operating |
| So how much start-up money - that seed money | | | | expenses. In reality then, you'll need more seed |
| we're talking about - will you need to start your | | | | money than just for "start-up" expenses. |
| business? Not surprisingly, there's more to starting | | | | To assure the success of your start-up, what |
| a new business than just starting a new business. | | | | you need is access to enough seed money to get |
| Confused? Well, "starting" means more than | | | | you to where your business actually begins to |
| picking a name and ordering those business cards. | | | | grow, a point just beyond breakeven. It boils |
| How much "more" depends on the type of | | | | down to this: The faster you can get your new |
| business you plan to start. | | | | full-time business to breakeven, the less seed |
| If you write fiction books or paint still life, the | | | | money your start-up will require. |