One of the most important things you will do as an entrepreneur is to raise the money you need to finance your new business. Unfortunately, there are a lot of myths about financing new businesses.
Below I outline a few of the myths and point out the realities:
Myth 1: You need a lot of capital to start a new business — Not true. The typical start-up only requires about $25,000 to get going. Many entrepreneurs keep the cost of financing a new business down by designing their businesses to work with little cash. They borrow instead of paying for things. They rent instead of buy. And they turn fixed costs into variable costs by, say, paying people commissions instead of salaries.
The above is just one of the more myths that Scott Shane shared regarding business financing. I recommend it really a good read as it will clarify to us a lot of important things relating to start up financing. Check it out --Myths And Realities Of Financing Start-Ups!