ProjectionHub is a web application that helps entrepreneurs create financial projections without Excel. We looked at just over 200 startups who have used ProjectionHub to create their financial projections over the last couple months and discovered some interesting data.
A full two thirds of entrepreneurs intend to make a personal investment into their startup. The average projected personal investment is just over $70,000.
This is an important stat for entrepreneurs to hear. Many want to be entrepreneurs think they can start a business without putting any of their own capital at risk. Often times you hear entrepreneurs say something like this, “I will just come up with a business plan, and then bring that to the bank and get a loan, or find an investor to fund our plans.” This is unrealistic. There are very, very few banks or investors that will give you a dime without some of your own skin in the game.
So, based on this data, if you want to start a business, the first thing you should probably do is start saving some money that you can use to make an investment into your startup.
You can start creating your financial projections with ProjectionHub today. Make sure to use coupon code “ba25off” to get 25% off, or just use our free version of the tool.