Birmingham Small Business.com

Courtesy of FoxBusiness.com:

The third-most popular resolution, according to myGoals.com, is starting a business. The cost of such a venture can vary greatly. “You can start a business with anything,” said John McDowell, a spokesman for the Small Business Administration. “You could be someone with $300 million in startup capital, or someone who wants to do small editing projects on the side every Saturday to earn an extra $200.”

Although there is no average cost for getting a business off the ground, the SBA conducted a study of more than 800 entrepreneurs in 2003 that placed the average expected startup costs at $6,000. Approximately half of all solo entrepreneurs surveyed said they needed $5,000 or less to make their business self-sustaining, while entrepreneurs with partners estimated needing $10,000. Expected fifth year incomes were between $90,000 and $125,000.

The time investment in a new business is usually one of the greatest costs, yet it’s often overlooked, according to McDowell. “It is possible to start your own business part time, but to start a successful business that’s going to be your sole source of income, you’re going to put in more than just your 9-5,” he said.

According to the 2003 study, most entrepreneurs start gradually, devoting approximately 35 hours a week or more to their business. But, talk to any seasoned entrepreneur, McDowell said, and “it’s a lot. It’s a huge emotional and financial investment.”

Whatever your New Year’s resolution, the keys to success are taking it slow and keeping it real. “Unrealistic expectations and resolutions are demoralizing,” said Dr. Philip R. Muskin, professor of clinical psychology at Columbia University.

“If you need to lose 35 pounds, it’s better to promise to lose five pounds and lose five than promise to lose 35 and lose none,” he said. “New Year’s resolutions are things that we can only do ourselves, and that’s what makes them unique. Small goals are the ones that add up at the end of the year, and getting a better year out of your life is the true power of a New Year’s resolution.”