Cheap Offices and Tech Mean Startups Need Less Funding [Infographic]
Entrepreneurs: This is the time to disrupt a market. Those holding out for a better market conditions are bypassing the opportunity of a lifetime.
Every start-up founder uses free or inexpensive online resources to get his or her company launched.
“Start ups don’t need to buy anything,” said Steve Fuchs, the co-founder of Divorcenet.com. “They can rent, lease or borrow.”
Be sure to look carefully at the terms of a lease or a loan. With a lease, you do not have to front a lot of money, but over the long run, it may be more expensive. Hopefully, by that time the business will be growing. So unless you get a dirt cheap price, don’t own assets.
Granted, two countervailing trends – a slowly recovering national economy and a pull-back in later early-stage funding – are keeping things interesting for entrepreneurs. But at the same time, stubborn recession conditions like cheap office space and tech trends like cloud computing temper the need for big piles of outside money to get new companies off the ground.
This infographic comes from Bob Rizika, CEO of cloud computing, Infrastructure-as-a Service (IaaS) firm ProfitBricks USA, who obviously hopes lean startups see an advantage in operating in the cloud. The key points are that creating a startup now is cheaper than ever before, there are new sources of funding available, and the lingering economic issues can reduce competition. Check out cheap offices and tech infographic:
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