17 Jan '11, 11am

On @e27sg: How much capital does a startup need?

First, it is imperative to determine which type of company you would be putting up because that will give you a rough idea of how big you should raise. It could either be a product company, a service company, an advice company or a combination of all these. A product company such as a manufacturer of a certain gadget will have to shell out a hefty amount of money in advance to cover the production costs before you can expect your first receipt. A service company like housekeeping services may not need too much upfront money. You buy supplies, work on the human capital, and then collect cheques monthly. An advice company such as a law firm or consultancy capitalises on specialised services therefore allowing them to even require advance payment.

Full article: http://e27.sg/2011/01/17/how-much-is-enough-for-a-start-u...

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