Transcribed article based on the video above.
Do you need capital to start a business? In business school, one of the first things they tell you is that you need capital to start a business. When I graduated business school and started my first business, which was a physical print magazine, I didn’t have an option, I didn’t have access to capital and I started that business with no capital. So my answer is no, you don’t always need capital but I will tell you this. Even though I was able to run a successful magazine for a few years and we printed several additions, it was extremely painful along the way and often we made sacrifices we shouldn’t have had to make because of a lack of capital. We should have raised capital along the way.
One thing I want to make note of, is that not every business requires capital, but if it does, raise it along the way, whether it is at the beginning or six months in, your chances of succeeding will be much higher.
Amir Mir is the CEO of LunchMoney. You can read more of his posts here on Docstoc or follow him on Twitter.