How much start up capital is needed to start a STRONG secure online business?

55 replies
I see many threads on here about making money quickly for emergencies etc.
I am wanting to know how much start up capital is needed to create a solid business model online? I am not asking about quick fix here. I am asking how much to be able to invest in my business and quit my day job without worries?

What do warriors recommend as start up?
I would love to hear responses from people thanks in advance
#business #capital #needed #online #secure #start #strong
  • Profile picture of the author Nathy Curiel
    Hard question. I personally test some option/ ways to make money online which are 100% outsourcable. I am almost finished and then I will make a choice and hire a small army to build as much sites till I meet my goals and of course keep test for other methods. But I am willing to spend as much as It will take to reach my goal.
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    • Profile picture of the author BabyMama
      Originally Posted by Nathy Curiel View Post

      Hard question. I personally test some option/ ways to make money online which are 100% outsourcable. I am almost finished and then I will make a choice and hire a small army to build as much sites till I meet my goals and of course keep test for other methods. But I am willing to spend as much as It will take to reach my goal.
      Looking forward to hearing your results
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    • Profile picture of the author sheffernan
      Anyone can start with nothing. As long as they have the drive, they'll make something out of that nothing.

      Ask millions of business people around the world who have done the same.
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  • Profile picture of the author Nathy Curiel
    I am testing Amazon review sites at this moment form Jan Roos and building Article directories and some another small test

    I am slow hire people and service to build backlinks to it ...whatever it takes ( is my motto)
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  • Profile picture of the author echaz
    I personally started with $10 for a domain and a hosting provider.. Actually it was like $4.. it was a cheap hosting provider..

    now after three years I have several affiliate websites and make a decent amount of money and I'd call it a "strong" business.

    so as sheffernan said: if you really want to, you can achieve it!
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  • Profile picture of the author JamesGw
    Internet marketing is nice because there isn't that much overhead if you're willing to do all of the work yourself. Most people aren't for a number of reasons - too time consuming, don't have the skills, etc. In addition to this, you need to consider marketing costs, link costs, etc.

    I'd recommend having at least $5,000 on hand if you're looking to create your own business.
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    • Profile picture of the author BabyMama
      Originally Posted by JamesGw View Post

      Internet marketing is nice because there isn't that much overhead if you're willing to do all of the work yourself. Most people aren't for a number of reasons - too time consuming, don't have the skills, etc. In addition to this, you need to consider marketing costs, link costs, etc.

      I'd recommend having at least $5,000 on hand if you're looking to create your own business.
      Thank you for your response. I really wanted answers like this. I know its possible to create money online from zero but I wanted to know recommendations for long term over heads not overnight success.
      Thanks
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      • Profile picture of the author bmcgoff
        Basically, the more seed money you have, the more you can outsource. But it's good to do everything yourself at first so you know how to outsource properly. If you want to run a restaurant, you better know your way around a kitchen.

        That said, if you have 5k out of the gate, you'll be ahead of most others. Just don't waste it on WSOs!

        I would find one method (i.e., Jan Roos Amazon sites), build a couple of sites yourself so you know what you're doing, then outsource the next batch while you concentrate on SEO. After you know a little bit about SEO, outsource that and get started on the next batch. Make sense?

        I'm pretty new, but this is what I'm doing, and my monthly revenue is slowly but VERY steadily rising.
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        • Profile picture of the author BabyMama
          Originally Posted by bmcgoff View Post

          Basically, the more seed money you have, the more you can outsource. But it's good to do everything yourself at first so you know how to outsource properly. If you want to run a restaurant, you better know your way around a kitchen.

          That said, if you have 5k out of the gate, you'll be ahead of most others. Just don't waste it on WSOs!

          I would find one method (i.e., Jan Roos Amazon sites), build a couple of sites yourself so you know what you're doing, then outsource the next batch while you concentrate on SEO. After you know a little bit about SEO, outsource that and get started on the next batch. Make sense?

          I'm pretty new, but this is what I'm doing, and my monthly revenue is slowly but VERY steadily rising.
          This is great advice. Thanks. Unfortunatly I think most people don´t have 5k straight out the gate but agree that you should try everything yourself first before outsourcing. Great advice.
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  • Profile picture of the author tmjoe
    It actually depends on your chosen method. There are many ways to earn money online and the cost varies. Maybe you can share with us what are you planning on, so that we can offer you a more concrete ideas. If you don't have any, what are your interests then? Thanks.
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  • Profile picture of the author GregSilva
    It depends on the method you want to do to make money.

    I started with $0 doing CPA. I made my first few dollars through forums and such and bought hosting and a domain name cheap. Then I proceeded to make my own website and blogs and have made more money. It took time and effort learning how to do everything myself but it paid off in the end. I am a new warrior here and am now going to start building my own list and go into affiliate marketing.

    You just have to start!
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  • Profile picture of the author Joshua McCoy
    I think more importantly than how much money you put into your business at the beginning is now much knowledge you have about the type of IM business you're starting up in. There are many different ways people make good income here on the warrior forum, but the one thing they have in common is they know what works, even if that means they just started going for it and learned from thier mistakes to get to where they're at today.....

    Once you know what you're doing then you can scale up and make as much as you can handle keeping up with. The sky's the limit at that point......

    Not to say that having a good chunk of money can't speed all of that up, but once you have a good handle on things then you can be sure you'll be earning a decent amount on what you invest.
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    • Profile picture of the author Gail_Curran
      You can *start* with next to nothing, but in order to create a viable business I think you need to have at least $300-500 per month to spend on advertising, backlink generation, content creation, tools, etc.
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      • Profile picture of the author David Keith
        i would say that most of those who started with nothing took a long time to get going. and most probably didn't actually start with nothing... most had previously invested in their internet marketing education.

        however it is possible to do it with no money and all work. but the more money you can put into it, the less work you have to do and the less "hats" you have to wear as the business owner.

        WF is a great example...if you have money to create a great product, an understanding of what a great product is, some capital to get things done like sales letters and graphics, and some money for a WSO or WF banner ads, you can probably turn a nice profit in under 2 weeks (maybe less).

        I would suggest that if your fairly new to IM you are going to have to pay for some experience by making a few mistakes. you can always cut down on them, but anyone DOING much of anything will make mistakes that costs money. You need enough start up money to push through those first few mistakes.

        My thoughts are $500-1000 to get started and $250-500 will get you a nice start and all the tools you need to succeed.

        and 80% of that money needs to be spent on your product or service not on your continuing IM education. once you have read 3-5 decent IM products you have most of what you need. The rest will be the same old thing with a few new ideas.
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  • Profile picture of the author PotPieGirl
    Originally Posted by BabyMama View Post

    I am wanting to know how much start up capital is needed to create a solid business model online? I am not asking about quick fix here. I am asking how much to be able to invest in my business and quit my day job without worries?
    Hi BabyMama =)

    You've started a great conversation here!

    I am one of those people who started online with $0 investment, zero knowledge, and $0 overhead required to work online (other than my internet connection - which we paid for anyway).


    I started in Feb 2007. I started using all free methods to make money online (short version affiliate marketing with free web pages) and I spent a TON of my time each day soaking any and all free information and training that I possibly could.

    It took me about a year to get decent money coming in consistently. During that time, I made my own campaigns and then did anything I could to get money coming in NOW (things like being an outsourcer, an SEO intern, writing articles, etc).

    Once the money started coming in, I paid myself very little and used the majority to grow my business and get the things I truly needed to have a real online business (things like hosting and domain names and an autoresponder service---- and yes, I invested a great bit in furthering my training and education).

    Based on that, I am one of those people who firmly believes that you don't HAVE to have ANY start-up capital to start working online. However, you DO need a plan of how to reinvest your earnings to build your business so that you become a strong and steady business.

    To me, the only thing you MUST have is your brain ready (and it will really, really hurt at times), your butt in front of the computer as often as humanly possible, and a fierce drive that keeps you from ever giving up.

    Bottom line for me - the start-up "capital" required to start an online business isn't money-based. It is attitude based and time based. You must dedicate your attitude and your TIME to MAKING it work.

    The Internet is the only place I know of where you can start a business for free and completely change your financial reality AND your financial future simply by having a good frame of mind and the relentless dedication to learn and do the work.

    Sadly, over my years working online and helping others, I have come to learn that for many people, that investment of time and dedication is just too expensive.

    Best of luck to you!

    Jennifer
    ~PotPieGirl
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  • Profile picture of the author barache
    I wouldn't be surprised if PotPie's example has been the same for tens of thousands of successful internet marketers. You really need so little money, if you are willing to do a lot of work.
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  • Profile picture of the author lotsofsnow
    Go to Flippa.com and look at what web sites are selling there. Look at the ones that produce the kind of income that you need.

    Let's say you need $5k to $10k per month profit.

    Then you should be looking those web sites.

    Now from the ones that are in your ball park select the industries that you like or that you think you can like or understand.

    Then see what these sites are selling for. That is what you need as part of the startup capital. Then you also have to factor in your own learning curve and add some cash to compensate that.

    From the above example figures you will see that those sites sell from $30k to $200k. Make sure that you don't buy yourself a job but an investment.

    HP
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    • Profile picture of the author Alexa Smith
      Banned
      I started off spending about $50.

      I then completely wasted 3 - 4 months, not knowing what I was doing at all, and earning very little indeed.

      I then re-started, spending another $50/$70 (I can't remember exactly) in the process, and two months later was earning - by my standards then, as a student - a full-time living (about $3,500/$4,000 per month). That turned out to be the beginning of a solid, reliable, growing business from which I now regularly and reliably earn far more than that.

      There are, probably, some business models in IM for which "available capital" is more relevant, but for me, as an affiliate marketer/article marketer, having another $5,000/$10,000 to spend - at any point - wouldn't have made the process any quicker, and wouldn't really have made the income any higher, either.

      I'd urge anyone starting from scratch NOT to try "investing in something" as a way of bypassing the necessary learning-curve. It's so easy to envisage how people can lose all their money that way, by not knowing what they're doing. And not to "outsource stuff" you have no idea about. Oursourcing successfully is a specific and difficult skill-set to acquire. It requires trial and error, experience and judgement. All the accidents are out there, just waiting to happen.

      Originally Posted by BabyMama View Post

      What do warriors recommend as start up?
      $200 would be a "luxury".
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      • Profile picture of the author entrprnr
        Originally Posted by Alexa Smith View Post

        I started off spending about $50.

        I then completely wasted 3 - 4 months, not knowing what I was doing at all, and earning very little indeed.

        I then re-started, spending another $50/$70 (I can't remember exactly) in the process, and two months later was earning - by my standards then, as a student - a full-time living (about $3,500/$4,000 per month). That turned out to be the beginning of a solid, reliable, growing business from which I now regularly and reliably earn far more than that.

        There are, probably, some business models in IM for which "available capital" is more relevant, but for me, as an affiliate marketer/article marketer, having another $5,000/$10,000 to spend - at any point - wouldn't have made the process any quicker, and wouldn't really have made the income any higher, either.

        I'd urge anyone starting from scratch NOT to try "investing in something" as a way of bypassing the necessary learning-curve. It's so easy to envisage how people can lose all their money that way, by not knowing what they're doing. And not to "outsource stuff" you have no idea about. Oursourcing successfully is a specific and difficult skill-set to acquire. It requires trial and error, experience and judgement. All the accidents are out there, just waiting to happen.



        $200 would be a "luxury".
        You should thank this person for this post.

        There's nothing better than boot-strapping yourself, as experience really is the best mentor. When I was younger & dumber than I am today (heh) I hit about 5 figures a month and decided I needed to diversify. I thought I was set & could just throw money at a completely different business model.

        I ended up losing almost 25k chasing that bad model, and screwing up the one that worked. Never gonna grab that lightning bolt again - and the advice to grow your own is as solid as it comes.

        I really wish there was a 2cents Smiley I could use.
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        Often the difference between a successful person and a failure is not one has better abilities or ideas, but the courage that one has to bet on one’s ideas, to take a calculated risk – and to act.
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  • Profile picture of the author Britt Malka
    LOL, great question

    I started out spending nothing. I used my email client as an auto-responder (it had great filters), and I place my content on an existing website. Then my husband offered me my very own domain for my birthday...

    What did I do exactly? Well, I have it all online in a free eBook on my site, but short: I wrote tips about how to use your computer, Windows and stuff (it was before I got tired of wasting time and got a Mac), I sent it out to my list, I added adverts in the mail and later I put AdSense on my site.

    This site still pays my rent.

    This is not the ideal way to start a business. It worked, but it probably took more time than necessarily. Especially when I lost thousands of subscribers due to faulty auto-responders on my own domain. I was too cheap to get AWeber.

    So investment neaded:

    - Idea (not a million dollar idea, but a good, useful, fun for you, idea)
    - Domain ($10)
    - Hosting (not sure, I think we pay around $7 per month)
    - Auto-responder (erm, maybe around $15 per month)
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  • Profile picture of the author redbearing
    I think it actually depends on the type of online business that you plan to start.

    As for me, I started with $0 capital 3 years ago and slowly expand my business with the payments that I received from my customers and get where I am today. Now I am doing my business full time and have my own office not far away from my home

    What's most important is, the drive and determination that you have inside. If you really want to do something, there is nothing that can stop you.
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    • Profile picture of the author myob
      I started many years ago for $0 using Blogger and Adsense. Back then I didn't even know what I was doing, but very quickly started making bank by messing around and writing articles with high-paying Adwords. LOL!
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      “If I have seen further than others, it is by standing upon the shoulders of giants.” – Isaac Newton
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    • Profile picture of the author David Keith
      it can be done with $0.

      but starting out with a domain, hosting, a decent looking site with some graphics, some decent content of some sort (you can write it all) and an autoresponder / AR series, in my opinion are almost necessities to get a real business going.

      all that can be done for well under $250.

      then you just need a unique product and some sort of affiliate program and your are well on your way to having a real business. having your own product is a real game changer... it is probably the biggest turning point in any IMer's story.

      Unique and solid products of your own are hard to do for free.

      there are several ways to make money online with little investment, but to start building a business it does need a little investment. very very few here began to actually "build a business" with $0 and no site, no domain, and no list.
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      • Profile picture of the author BabyMama
        Originally Posted by owslaw123 View Post

        it can be done with $0.

        but starting out with a domain, hosting, a decent looking site with some graphics, some decent content of some sort (you can write it all) and an autoresponder / AR series, in my opinion are almost necessities to get a real business going.

        all that can be done for well under $250.

        then you just need a unique product and some sort of affiliate program and your are well on your way to having a real business. having your own product is a real game changer... it is probably the biggest turning point in any IMer's story.

        Unique and solid products of your own are hard to do for free.

        there are several ways to make money online with little investment, but to start building a business it does need a little investment. very very few here began to actually "build a business" with $0 and no site, no domain, and no list.
        I think its pretty clear from the WF that creating your own products is the best business model to have but ultimatly the hardest one to create and sustain. Its my goal since joining here to create a product line and build a list. I have been reading alot of information here and am building the funds and knowledge to create my own products.
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  • Profile picture of the author nicholasb
    I started with zero and made close to $3,000 USD my first month I took that entire amount and invested it back into my business.

    Anytime I launch a new product and website, I usually dump about 2-3 thousand in it's first month and it really takes off from there.

    I would say if you just had $1,000 and a good understanding of how to convert sales you can be off to a good start.

    Basically just create something people want make the offer powerful and irresistible and use the $1,000 to send targeted traffic to it.
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    • Profile picture of the author paolo83
      Originally Posted by nicholasb View Post


      Basically just create something people want make the offer powerful and irresistible and use the $1,000 to send targeted traffic to it.

      Very intelligent response man the thing to watch out is the kind of traffic strategy you put in place because when it comes to getting leads and convert some sales it becomes very easy to waste cash......

      paolo
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    • Profile picture of the author celente
      Originally Posted by nicholasb View Post

      I started with zero and made close to $3,000 USD my first month I took that entire amount and invested it back into my business.

      Anytime I launch a new product and website, I usually dump about 2-3 thousand in it's first month and it really takes off from there.

      I would say if you just had $1,000 and a good understanding of how to convert sales you can be off to a good start.

      Basically just create something people want make the offer powerful and irresistible and use the $1,000 to send targeted traffic to it.
      pretty much how we created our first 5 figure month and still do to this day.

      Never waist your money, always reinvest it back into your business and put it all on hyperdrive by outsourcing.
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    • Profile picture of the author BabyMama
      Originally Posted by nicholasb View Post

      I started with zero and made close to $3,000 USD my first month I took that entire amount and invested it back into my business.

      Anytime I launch a new product and website, I usually dump about 2-3 thousand in it's first month and it really takes off from there.

      I would say if you just had $1,000 and a good understanding of how to convert sales you can be off to a good start.

      Basically just create something people want make the offer powerful and irresistible and use the $1,000 to send targeted traffic to it.
      Great response. I think you have very sensibly outlined how you got your business off the ground. I love that you started from nothing but know how much money you need each and every product launch and have created a business model from it.
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  • Profile picture of the author SiteSmarty
    As far as I'm concerned the collision between internet marketing and offline is the place to be. You can turn a $100 bucks a month into $3000+ without much effort.

    I've designed WordPress skins/themes and sold them. Built high-end membership sites for good money, flipped sites and worked with offline businesses.

    Off liners are the best. They are willing to pay for results, they pay on time and they are easy to sell to.

    Best of all, every off liner I've worked with has become a friend. Hard to beat that.
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  • Profile picture of the author theory expert
    Banned
    Although many recommend a learning curve.

    If you have capitol is their no way to outsource all task?

    Aren't there people who can write, content/syndicated articles, source niches, create a product, design websites, write sales page that converts, and, drive traffic?

    Question: How much would that cost to outsource?

    Anyone want to chime in on the right business model to do this?


    Your welcome...

    off to the beach

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    • Profile picture of the author Mike Anthony
      Frankly I don't see how anyone can answer this question. From what I am seeing everyone is assuming their path. Are you going to do affiliate marketing and can write then Alexa's path may work for you or you are going to have to hire someone. Do you want to work with flipping sites then sitesmarty's path may be yours.

      Do you want to build and promote one site or have tons of them? I think everyone is assuming that Internet marketing is one thing out of affiliate marketing, make money online, site flipping. product creation or adsense revenue. IM is as wide as your plans and interests are.

      So what do you want to do? None of the advice won't make for a stack of beans until we know what that is.
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      • Profile picture of the author Jill Carpenter
        Originally Posted by BabyMama View Post

        I am wanting to know how much start up capital is needed to create a solid business model online?

        I am asking how much to be able to invest in my business and quit my day job without worries?
        It takes as much as it takes. Those giving answers of zero and those suggesting thousands are both right.

        Quit your day job without worries? Well, first off I don't think you will never have any worries. But - I have no idea what your lifestyle or monthly expectations are. So no worries for you is likely much more different than no worries for me.
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        "May I have ten thousand marbles, please?"

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        • Profile picture of the author Yolee
          I think you're taking the right approach and probably won't have to spend very much because you're beginning by doing research which is really smart. Some of us waste a lot of money buying what some would call "shiney" things...and quick fixes. Hang in there and keep getting knowledge and you won't spend a huge bundle, just what is necessary and before you know it you will be one of the "BIG GURUS"
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  • Profile picture of the author goleza
    Originally Posted by BabyMama View Post

    I see many threads on here about making money quickly for emergencies etc.
    I am wanting to know how much start up capital is needed to create a solid business model online? I am not asking about quick fix here. I am asking how much to be able to invest in my business and quit my day job without worries?

    What do warriors recommend as start up?
    I would love to hear responses from people thanks in advance
    Hi BabyMama,

    It's not how much capital in terms of money, it's capital in terms of both money and other resources like skills and time. If you go by how much money you need to start an online business, you will fall into a trap. People start with as little as $5 and end up accummulating a lot of wealth. And even the wealthy people around did not begin big. They started small and built their business to greater levels.

    I once asked the same question to my weathy cousin, who told me that the best way to make money is by starting to do something. Besides, there are very many free ways of marketing your products online. Take an example of article writing, blogging, participating in forums related to your line of business, etc... All these are at your disposal. Take advantage of them. If you do not have money, then use your other resources. Have a burning desire to make money and be consistent. You will still win.
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    • Profile picture of the author BabyMama
      Originally Posted by goleza View Post

      Hi BabyMama,

      It's not how about how much capital in terms of money, it's capital in terms both money and other resources like skills and time. If you go by how much money you need to start an online business, you will fall into a trap. People start with as little as $5 and end up accummulating a lot of wealth. And even the wealthy people around did not begin big. They started small and built their business to greater levels.

      I once asked the same question to my weathy cousin, who told me that the best way to make money is by starting to do something. Besides, there are very many free ways of marketing your products online. Take an example of article writing, blogging, participating in forums related to your line of business, etc... All these are at your disposal. Take advantage of them. If you do not have money, then use your other resources. Have a burning desire to make money and be consistent. You will still win.
      Thanks for your answer. I think thats become very clear in this thread that without taking action you can have all the start up capital in the world but if you do nothing with it then its no good atall.
      Reinvesting money and building it seems to be the key. Yes you can start with nothing as long as you keep on building.
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  • Profile picture of the author Targeted Traffic
    It depends...and it could be any amount actually...the important thing is if you have it...set a certain capital and then device tactics/schemes on how you are going to profit from that. This is IM failing at first isn't really new...so if you set a capital...ensure that you'd be ok if ever it all goes down the drain...anyway this is IM...you can start out with as low as 0
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    • Profile picture of the author BabyMama
      Originally Posted by Gail_Curran View Post

      You can *start* with next to nothing, but in order to create a viable business I think you need to have at least $300-500 per month to spend on advertising, backlink generation, content creation, tools, etc.
      Thanks for giving me a figure. Its good to budget in these aditional online costs each and every month. I will add these to my monthly goals.

      Originally Posted by owslaw123 View Post

      i would say that most of those who started with nothing took a long time to get going. and most probably didn't actually start with nothing... most had previously invested in their internet marketing education.

      however it is possible to do it with no money and all work. but the more money you can put into it, the less work you have to do and the less "hats" you have to wear as the business owner.

      WF is a great example...if you have money to create a great product, an understanding of what a great product is, some capital to get things done like sales letters and graphics, and some money for a WSO or WF banner ads, you can probably turn a nice profit in under 2 weeks (maybe less).

      I would suggest that if your fairly new to IM you are going to have to pay for some experience by making a few mistakes. you can always cut down on them, but anyone DOING much of anything will make mistakes that costs money. You need enough start up money to push through those first few mistakes.

      My thoughts are $500-1000 to get started and $250-500 will get you a nice start and all the tools you need to succeed.

      and 80% of that money needs to be spent on your product or service not on your continuing IM education. once you have read 3-5 decent IM products you have most of what you need. The rest will be the same old thing with a few new ideas.
      I totally agree with this one. Its very easy to become trapped in the education game and just go from product to product looking for a system. I have been there myself. I have typed up my business plan and stuck it to my wall, I have also typed up how much money I want to be making and my goals and will try to stick to them to get to my monthly money goal.
      Thanks for the percentage to invest into your own products. This is something I am in the process of doing now.

      Originally Posted by PotPie Queen View Post

      Hi BabyMama =)

      You've started a great conversation here!

      I am one of those people who started online with $0 investment, zero knowledge, and $0 overhead required to work online (other than my internet connection - which we paid for anyway).


      I started in Feb 2007. I started using all free methods to make money online (short version affiliate marketing with free web pages) and I spent a TON of my time each day soaking any and all free information and training that I possibly could.

      It took me about a year to get decent money coming in consistently. During that time, I made my own campaigns and then did anything I could to get money coming in NOW (things like being an outsourcer, an SEO intern, writing articles, etc).

      Once the money started coming in, I paid myself very little and used the majority to grow my business and get the things I truly needed to have a real online business (things like hosting and domain names and an autoresponder service---- and yes, I invested a great bit in furthering my training and education).

      Based on that, I am one of those people who firmly believes that you don't HAVE to have ANY start-up capital to start working online. However, you DO need a plan of how to reinvest your earnings to build your business so that you become a strong and steady business.

      To me, the only thing you MUST have is your brain ready (and it will really, really hurt at times), your butt in front of the computer as often as humanly possible, and a fierce drive that keeps you from ever giving up.

      Bottom line for me - the start-up "capital" required to start an online business isn't money-based. It is attitude based and time based. You must dedicate your attitude and your TIME to MAKING it work.

      The Internet is the only place I know of where you can start a business for free and completely change your financial reality AND your financial future simply by having a good frame of mind and the relentless dedication to learn and do the work.

      Sadly, over my years working online and helping others, I have come to learn that for many people, that investment of time and dedication is just too expensive.

      Best of luck to you!

      Jennifer
      ~PotPieGirl
      Hi PotPieGirl,
      Thanks for your very inspirational story. Its great to hear so many people starting from scratch and learning from free resources. Its so true that the internet has become a place where people look to start an online business from nothing. Its definatly not true for the real world!

      Originally Posted by Alexa Smith View Post

      I started off spending about $50.

      I then completely wasted 3 - 4 months, not knowing what I was doing at all, and earning very little indeed.

      I then re-started, spending another $50/$70 (I can't remember exactly) in the process, and two months later was earning - by my standards then, as a student - a full-time living (about $3,500/$4,000 per month). That turned out to be the beginning of a solid, reliable, growing business from which I now regularly and reliably earn far more than that.

      There are, probably, some business models in IM for which "available capital" is more relevant, but for me, as an affiliate marketer/article marketer, having another $5,000/$10,000 to spend - at any point - wouldn't have made the process any quicker, and wouldn't really have made the income any higher, either.

      I'd urge anyone starting from scratch NOT to try "investing in something" as a way of bypassing the necessary learning-curve. It's so easy to envisage how people can lose all their money that way, by not knowing what they're doing. And not to "outsource stuff" you have no idea about. Oursourcing successfully is a specific and difficult skill-set to acquire. It requires trial and error, experience and judgement. All the accidents are out there, just waiting to happen.



      $200 would be a "luxury".
      Thanks for the $200 luxury figure
      I agree that learning curve is the best way to go about business. I have learnt from a huge knockdown in my business a few months ago when my flipping business went to pot due to a paypal chargeback that cost me my paypal account to be frozen. My bills to be late paid, my feedback on flippa to drop as could not complete the success fees. I am now having to start a fresh and will make sure I cover my back to prevent something like this happening again.
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  • Profile picture of the author BabyMama
    I can´t believe the amount of responses I have had on this thread. The amount of detailed responses has blown me away.
    Thanks for all the information. It has become clear that without any action it doesn´t matter how much money you have its worth nothing. You can start from zero as long as you take action and keep building.
    Products seem to be the way to go and thats what I am planning for my current business model.
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    • I'm going to be the annoying contrarian here.

      Bootstrapping is all well and good -- sometimes that's all you *can* do and yes, you learn a lot.

      But there are problems.

      For one thing, it takes extra effort to maintain momentum. Have you seen those posts from Warriors who have to fight fatigue and boredom to stay with it day after day? Somebody has to take out the garbage and if you don't have capital, that somebody is you.

      What's worse, maybe, is that if capital falls into your lap, you won't have a clue what to do with it because you haven't planned. Happened to me, but at that point I was already well into the bootstrap cycle. A lot more money didn't help. If only it had come at the beginning I could have saved a few years and known at the end of the first 12 months if this business was going to be a winner or not. And knowing that, make the decision to fish or cut bait. Venture capitalists do it, IMers should do it too.

      Which brings me to another point: Too many people are loath to kill their darlings. Their business struggles along like a stunted plant that never gets quite enough water. At some point you have to own up to the fact you've planted a shade-loving begonia in the Sahara. Better to give it a quick burial and move on. Your next idea might be the all-time winner. Don't waste your life trying to make a mediocre one work when there's something brilliant around the corner.

      fLufF
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  • Profile picture of the author Kiriakos22
    In my opinion a start up capital is just an advantage when you start online.It will save you much time because you can outsource most of the things needed BUT without personal work you won't achieve anything.

    When I started I worked as a waiter in a restaurant and hardly made my living with the money I was getting so I couldn't invest anything in the online business.I started with around $50 per month which included domain name,hosting company,autoresponder and a membership site which taught me everything I know.
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  • Profile picture of the author retirein10years
    It really depends on what your definition of STRONG is. If you are looking for a residual income stream of $500 to $1500 a month, it would be reasonable to shell out between $50 and $500. If you're looking for a higher residual income, say between $1500 and $5000 a month, look at spending between $500 and $1500 initially. The real expense is with the ongoing marketing and advertising. Expect a M&A budget of 40% initially. It can be reduced as the business gains momentum and you are reaching your income goals.
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  • Profile picture of the author 2011profit
    Security on an online business is a tough work. So you should start with all your determination.
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  • Profile picture of the author Jamie Drew
    Depends on how lazy/hard working you are. If you plan to outsource a lot of the tedious tasks before your business is already making money, then you'd need a lot more start up funds than usual. A couple grand or so like others above have mentioned.

    However, if you're willing to put the hard work in yourself and be patient or you're just on really tight budget then, really, you could get started with no less than $100. You'd only need this for hosting, domain name and an autoresponder.

    You also need a solid plan for getting targeted traffic to your site to go hand in hand with the low funds though!!
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    • Profile picture of the author BabyMama
      Originally Posted by JamieD87 View Post

      Depends on how lazy/hard working you are. If you plan to outsource a lot of the tedious tasks before your business is already making money, then you'd need a lot more start up funds than usual. A couple grand or so like others above have mentioned.

      However, if you're willing to put the hard work in yourself and be patient or you're just on really tight budget then, really, you could get started with no less than $100. You'd only need this for hosting, domain name and an autoresponder.

      You also need a solid plan for getting targeted traffic to your site to go hand in hand with the low funds though!!
      Thanks for this great advice.
      You have clearly outlined how much is needed as a start up for any successful business to get off the ground. Yes I think the best way is to start by doing it yourself and then outsource so you can expand
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  • Profile picture of the author Brian Terry
    You asked "how much how much start up capital is needed to create a solid business model online?"...

    Some solid business models need more money than others. It's not about saying invest "x" amount and you'll create a solid business model. There is much, much more to it than that.

    As you know from what others here have said you can create a solid business with just a couple of dollars starting capital.

    But obviously it's not going to immediately replace your income, unless you have an incredibly hot product or service that you can market extremely well.

    If you have money to spend and want a solid business model have you considered buying an already established business that generates the monthly income you need to quit your day job?

    That's the shortest route you could ever take to replacing your income. But you really need to know and understand all about doing business online so you can keep that business growing.

    If you're new to online marketing there's still a lot to learn as you can appreciate, so starting out in your spare time investing $50 - $100 a month is a great way to get started and get an education at the same time.

    As you learn and gain more experience you increase your profits until you can safely quit your day job without any worries.

    Be sure you have at least 6 months of cash in reserve before you do quit.

    If you can find yourself a mentor or business coach who is already where you want to be you'll be able to get there MUCH faster.

    I hope this helps.
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  • Profile picture of the author lovelysue
    Hi Baby Mama,

    This is what I can recommend for you.
    1. Choose what you are interested in doing /offerring in your online business. Decide on what interests you.
    2. Choose wisely your business model - what you will do, what others will do, how you will be finding clients / traffic, how you will be converting them
    3. Hire a coach who will show you how to get to profitability fast. Or sign up for a program which will teach you how to do X, Y or Z and implement everything.

    Step 3 is the income acceleration process for online businesses. If you want to skip it - then you've got to learn what to do on your own: test and try, fail and learn.

    If you start up your business with investment of money: mistakes will cost you "dearly" to learn. If you start up your business with investment of time: many times will pass till you "nail it".

    When I started my business- I invested $4500 in skills for 6 months. Then - 9 months after my first day in business - I had 50% return on my investment. In the first year - I broke even: the money that I made was just about the same amount of the money that I spent to start up. Back then - this was a "side business" so - I made sure it didn't suck up all my time and only my savings were hurt and only for a short while. ON the 2nd year I invested another $2000 in business advise but the return on investment was tripple that year because:
    1. I knew what I was doing (learned it the 1st year)
    2. and I knew what not to be doing and what mistakes to avoid (learned it from my coach)
    On my 3rd year I took on anther business (offline) and between the online and the offline business- I doubled my time devoted to earning money and I also doubled the income. But - the input of time was too much for my lifestyle requirements.

    So - I'm at the beginning of 4th year and my focus is: leverage of time. And yes - I'm willing to sacrifice some of the income I can make in order to create systems, automate content distribution and outsource most of the work that I do manually. As Rockefeller says:

    I would rather earn 1% off a 100 people's efforts than 100% of my own efforts.
    John D. Rockefeller
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  • Profile picture of the author papierre
    Banned
    [DELETED]
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    • Profile picture of the author WebPen
      What's a solid business model?

      -If its a writing business, $0

      -If its a web hosting business.... a LOT

      -If its serious affiliate marketing- $1 for the Aweber trial (or I guess you could use iContact, but I like my Aweber)

      -If its domain flipping- at least $10

      So it really just depends on what you're trying to do, how big you want to scale it, etc.
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    • Profile picture of the author Steadyon
      You can start with $0.

      But I know quite a few who started with $0. They spent $0 on software. They spent $0 on training. The value of time they invested was $0 and guess what? They made $0.

      A few thousand bucks will get you going faster, once you have found your market etc.

      Sam
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  • Profile picture of the author Alex Barboza
    This depends greatly on the type of business you want to start. I have asked this myself regarding an idea of setting up a freelancing site like Odesk but in Spanish. I am doing my research right now.
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  • Profile picture of the author Austin357
    Learning the business first hand is so important. I'm starting off and making a ton of mistakes but learning from each one. I don't think there is a short cut to take on this. The faster you can make the mistakes the faster you can push towards success.

    I have a friend who started off with me about a month ago. She spent $2,000 in her first month outsourcing almost everything. I think we are both in the same stage of getting our sites launched, SEO, back linking, etc... However, I can honestly say I understand the process and what's involved. She on the other hand has no clue since everything has been outsourced.
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  • Profile picture of the author Chri5123
    I too started with $0.

    Well not strictly true I bought many "make $100000 from home" type guides and owe a HUGE amount to this forum!

    No butt kissing, this forum has EVERYTHING you need to set up a strong, lasting business - people are doing it every day!

    Read, learn and most of all TAKE action!

    I start with the "bum marketing method" kept going and now 6 years later I don't do that bad...

    Chris
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  • Gotta say... I think a spanish language freelancer site is a great idea. Actually... probably a future million dollar idea.
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  • Profile picture of the author MichaelHiles
    As an early stage angel investor, I get pretty suspicious of any founder asking for less than 18 months of cash based on forecasted burn rate. Anything less than that, they're out looking for more money instead of running their business and anything more they're probably going to suffer from fragmented focus (too much cash burning a hole in their pocket so they start alternate internal business units before proving the first).

    Even if you're not looking at a formal investment, you should strongly consider how much cash you need to run the business without drawing a salary (and actually paying an operations person to run the show if possible). This allows you to figure out how much capital you have to re-invest into the business to allow it to become self-sustaining.
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