We’ve been seeing a fair number of reports lately that point to Canadians harbouring a secret desire to own their own businesses.
Several studies have reached the same conclusion, with the primary driver for starting an enterprise is the independence of being your own boss. One of the reasons holding us back is start-up capital.
So, how much does it cost to turn that dream into reality?
BMO Bank of Montreal surveyed the owners of small and micro-sized businesses that very question. By the way, a micro business is one with fewer than 10 employees. Small is defined as having 11 to 49 employees.
It turns out the average cost of starting a micro business is about $120,000, although more than half did it for less than $100,000. That’s less than it costs to buy a house. The investment in a small business is in the $365,000 range.
About half of new businesses survive, but those that do seem to fare quite well. In fact, more than half of all business owners are turning a profit in less than a year.