Myth #1 – It costs a lot of money to start up
Although investors exist who will plough hundreds of thousands of pounds into new recruitment ventures, lots of start-ups launch with humbler origins and significantly less cash in the bank.
For most founders, start-up capital consists of approximately 6 months’ living expenses safely stashed away – enough to keep the lights on until the first few deals begin to land.
Those who don’t have the cash saved can access investment on very competitive terms, usually retaining 80-90%+ of their equity, or use loan options to repay what they need to borrow to get going.
Whatever a potential founder’s scenario may be, it’s rarely inability to finance the launch which will hold things back – even with rent, mortgages and other bills to pay.
In many cases, would-be business owners wait years in employment in the mistaken belief that they aren’t financially ‘ready’ to start building their own company, when in reality they have options to begin creating a valuable asset for themselves and transforming their earning potential much more easily than they realise.