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Lol. I totally agree with you, I think we just have a different definition of "lots of money". To me (at least at that time) $2,500 was more money than I had ev

Lol. I totally agree with you, I think we just have a different definition of "lots of money". To me (at least at that time) $2,500 was more money than I had ever seen or had in my bank account.

MichaelCrawford 12y ago
There are ways to start companies with quite a lot less than $2,500.00. Consider that Bank of America was at first San Francisco's Bank of Italy. A fishmonger of Italian heritage - I don't recall if he was an actual immigrant - would use what cash he could spare to lend very small amounts of money, in return for interest. Among my own more-significant expenses are technical books, however I _could_ borrow them from colleagues, sometimes I can find them at the library. I prefer to purchase them when I can, but in principle I don't really have to pay, I could borrow the books. Consider: would you lend me forty bucks to buy a book, or would you lend me a book? Most people are reluctant to lend money, even to close friends or family, but have no problem lending things like books. Web hosting is quite cheap. In my own case, I get it for free because I helped out the founder of the hosting company with his marketing when he was just starting out. To start an online business, you don't need a whole lot more than a cheap webhost, a cheap computer, and a few books - but you do need quite a lot of labor.
- MalcolmDiggs 12y ago
  I agree with this as well. But, let's take the fishmonger for example: He didn't quit his fishmonger job, and try to live off the interest from the money did he? I believe you can absolutely start a company for cheap (you can definitely work a low-wage job and afford a startup). But that is very different from trying to live off your savings and start a company at the same time. Sure, you might get lucky and have instant-revenue that can support you, but I think you (and the business) will have a better chance of success if you're not trying to live off the profits (and can reinvest them in the company).
  - MichaelCrawford 12y ago
    Good Point. I read recently that lots of startups are funded by government benefits - food stamps and the like. Oddly, in some places it is unlawful to receive such benefits if one is the director of any company. I would think that would be encouraged, actually.
  - MichaelCrawford 12y ago
    I understand that one-half of United States businesses fail within the first five years. I expect far more than that fail, if they are high-tech startups. Consider that I read just a few days ago, that - overall - venture capital earns 5% less than the S&P 500. However, some VCs make out like bandits, it's just that there are lots of clueless VCs. So if you start any kind of business, you really don't want to quit your day job, until that business is profitable, or if you do quit your day job, you want to have lots of cash in the bank.

Lol. I totally agree with you, I think we just have a different definition of "lots of money". To me (at least at that time) $2,500 was more money than I had ever seen or had in my bank account.

MichaelCrawford 12y ago

There are ways to start companies with quite a lot less than $2,500.00. Consider that Bank of America was at first San Francisco's Bank of Italy. A fishmonger of Italian heritage - I don't recall if he was an actual immigrant - would use what cash he could spare to lend very small amounts of money, in return for interest. Among my own more-significant expenses are technical books, however I _could_ borrow them from colleagues, sometimes I can find them at the library. I prefer to purchase them when I can, but in principle I don't really have to pay, I could borrow the books. Consider: would you lend me forty bucks to buy a book, or would you lend me a book? Most people are reluctant to lend money, even to close friends or family, but have no problem lending things like books. Web hosting is quite cheap. In my own case, I get it for free because I helped out the founder of the hosting company with his marketing when he was just starting out. To start an online business, you don't need a whole lot more than a cheap webhost, a cheap computer, and a few books - but you do need quite a lot of labor.

MalcolmDiggs 12y ago
I agree with this as well. But, let's take the fishmonger for example: He didn't quit his fishmonger job, and try to live off the interest from the money did he? I believe you can absolutely start a company for cheap (you can definitely work a low-wage job and afford a startup). But that is very different from trying to live off your savings and start a company at the same time. Sure, you might get lucky and have instant-revenue that can support you, but I think you (and the business) will have a better chance of success if you're not trying to live off the profits (and can reinvest them in the company).
- MichaelCrawford 12y ago
  Good Point. I read recently that lots of startups are funded by government benefits - food stamps and the like. Oddly, in some places it is unlawful to receive such benefits if one is the director of any company. I would think that would be encouraged, actually.
- MichaelCrawford 12y ago
  I understand that one-half of United States businesses fail within the first five years. I expect far more than that fail, if they are high-tech startups. Consider that I read just a few days ago, that - overall - venture capital earns 5% less than the S&P 500. However, some VCs make out like bandits, it's just that there are lots of clueless VCs. So if you start any kind of business, you really don't want to quit your day job, until that business is profitable, or if you do quit your day job, you want to have lots of cash in the bank.