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CHAPTER 8 MASTERING YOUR MONEY

How Much Money Do You Need to Startup?

If you are in the process of starting up your business, you are
probably wondering how much money you would need. Many
people have the perception that it takes lots of capital to start
a successful company. Well, it all depends on the kind of
business you start. Some businesses do require huge upfront
investments while there are a lot of business that require very
little capital.

In fact, I have specifically started businesses that required very
little or no capital at all. Adam Khoo & Associates was started
with just $500. Adam Khoo Learning Technologies Group
was started with $8,000 (and it wasn’t even my own money).
Creatsoul entertainment (my first mobile disco company) was
started with $2500 (mostly to buy the second hand
music/lighting equipment) and Event Gurus was started
with $12,000. So, what do all these businesses have in
common? Well, they all started as ‘Business to Business/
Service businesses’.

The Four Business Categories

Businesses can either be ‘service businesses’ (provides a
service) or product businesses (manufactures and/or retails
products). Product businesses usually require a lot more
capital as money is needed to buy raw materials, build
factories, operate machines or to purchase inventory (in the
case of retailers).

On the other hand, service-orientated businesses are not as
capital intensive. You are selling time and effort (in the case
of hairdressing, cleaning, plumbing) or knowledge (in the
case of consulting, training, legal etc…). Since most of the
assets are intellectual assets (your ideas and knowledge), the
main costs involved would be staff salaries.

SECRETS OF BUILDING MULTI-MILLION DOLLAR BUSINESSES 229