Show Me the Money

You’ve got a hot idea for a new business, but you need start-up capital to get it off the ground. So how do you become part of the success story? First, figure out what ballpark you’re playing in.

The good news is that you’re in great company. Women-owned businesses in the U.S. are growing faster than the overall economy. By the year 2000, the Internal Revenue Service expects two-thirds of all U.S. businesses to have a woman in the top slot. Female-owned companies currently generate $2.3 trillion in sales annually and employ 18.5 million people. And new companies with a woman in the driver’s seat are more likely to stay in business than the average U.S. firm.

Moonlighter

You have a promising idea that you think can generate some cash, but you’re not ready to give up a steady pay check from your “real job.” Or you’re looking to supplement the money that your partner makes working full-time, by working part-time out of your home while bringing up the kids. Welcome to moonlighting — where you’ll devote evenings, weekends and other formerly free time to your enterprise.

How much money will you need?

How much money do you really need?
Moonlighter: $0 – $5000
Starting a business in your spare time often costs more in energy than it does in dollars, but over time the monetary investment can be substantial. Initial costs vary, depending on what exactly you’re trying to do.

Some issues to consider:
• Can you work from your home?

• Do you require additional equipment — a computer, fax, special telephone line or answering service?

• Do you need to advertise?

• Will you want to hire someone to do some of the housework you used to do in the evenings?

• Will you need tax help to sort through the jungle of self-employment rules?

Remember that it may take a while to earn your investment back. A standard home office can be set up for $200-$5,000, and .will serve you well for some time.
If you don’t need traditional office equipment, the costs can be much lower. If you require a lot of specialized equipment, or space, the costs can escalate into the tens of thousands of dollars.

Gabriella Sabor, a calligrapher from San Francisco, worked as a substitute teacher by day as she tried to build her art into her living at night. She charged the costs of materials to her clients, stored paper under the bed and, when the business outgrew her bedroom, she rented work space for only a few hundred dollars a month. Now that her moonlighting work has become her full-time job, annual advertising and overhead costs are still less than $10,000 a year. Her advice to potential moonlighters? “Keep a close eye on your taxes. Now that everything’s coming out of your own pocket, taxes and insurance can be a major drain.”

Got a general idea of how much you need?
Take the next step by trying our calculators.