A recently commissioned Gallup poll found that small business owners use an average of $10,000 to start their businesses. The survey showed that 73% of business owners surveyed primarily funded their businesses with their own personal savings. Thirty-seven percent obtained loans and lines of credit. Of no surprise was the that more than half of those surveyed (53%) said they would have had an easier time had more money been available at the outset. My response…who wouldn’t?
The survey did reveal that many who started their own businesses had limited or no business knowledge and information when starting out. Only 31% of small business owners surveyed started with business plans. Forty-nine percent say they would have had an easier time had they asked for more advice from experienced business owners, while an additional 39% indicated a better understanding of financial management would have been an asset.