Ten Factors for Entrepreneurial Success
Chapter 10: Money may be necessary, but is not sufficient
Money doesn’t start businesses, people do. But people often need money for two things to complete the start-up process. The first are the living expenses of the start-up team; everybody needs to eat and a place to sleep. The second is for resources to implement the new venture. There is substantial variation in both the amount of funds required and when financial support is needed during the start-up process. There are, of course, a wide range of solutions developed for these challenges. New solutions for acquiring financing are constantly being invented—internet based crowdsourcing being one of the more recent.1 The major strategy for covering living expenses is to continue working while developing the new business. More than four in five nascent entrepreneurs are working or managing another business while they develop the new venture. The importance of attending to their day jobs is reflected by how long it takes to begin devoting full-time to the start-up initiative. As shown in Figure 7.1, for about two-fifths (41%) full-time attention generally occurs about eight months after beginning the business creation process. Others may have working spouses, be living with parents or relatives or, for older nascent entrepreneurs, relying on retirement income.
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