Originally posted by kestra
As a budding businessman, I'm learning this. I have some large purchases on my horizon and the idea of laying down a couple grand of my own money is scary and exciting!!
If at all possible, DO lay down your own money. If you get anyone else's money, they get some control of your business. Starting a business is an expensive undertaking, but whoever provides the capital has ownership, and I can't say I like the idea of starting a business and then being an employee of something owned by someone else. Or if it's funded by a loan, then you're at the mercy of the bank, and if high interest rates and low turnover hit at the same time, you go under.

Major expenditure is of course unavoidable; if you're fortunate, a good proportion of your startup costs will turn into assets, but otherwise it's just gone. Don't start too big, but on the other hand, don't hamstring yourself by starting too small. But above all, don't take my advice - I am not an expert.