Starting a Business With a Small Budget

Everyone assumes starting a business requires a huge capital investment. You have to go out there and raise money from friends, family, investors, or some other source. That is partially true.

Some businesses do require a large capital investment to get started, but that doesn't always need to be the case. You can start a business on only a couple thousand dollars or less and that is what I am doing. I am taking a less risky approach to starting my business since I don't have a lot of capital to spend. I am not starting out by building a giant facility to make the game on my own. Something like that would likely cost 50k or more to do. To me, that is crazy. Making an investment like that has very little upside. It would make the games cheaper, but it is such a big risk. I am willing to sacrifice some profit for less risk. I am also making the game in Milwaukee, WI, where the minimum order quantity is only 100 games of DELU. This requires a lot less risk and is a good test period. If things go well, I can take a bit larger risk and order more games. If it was made overseas, I would have to order a lot more initially and take a big risk.

All of these decisions I am making are cutting into the profit I can make from the game, but it reduces my risk if it fails as well staying with in the budget I have to get the game going. At some point if DELU is going well, I might make a shift that requires more of an investment, but there will be a lower risk level associated with that. I am fairly risk adverse, which shines through here a little bit.

I am comfortable taking a bit out of my profit initially in order to get things rolling and see how the market reacts before I start to pour a large investment into the game that could cause me to go out of business. Most businesses fail due to poor cash management. If I can manage my cash well to get DELU going, I think I will have more success than if I threw 50k into it just to make some more profit.

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