I recently thought of opening my own small business, given that I'm unemployed and my prospects are bleak. I helped my wife start her own small business as a housecleaner. She's self employed full time but only makes $11,000 a year. I have dust and pet allergies so I can't work with her.
I was researching how much it would cost to open a small franchise. My grandparents had their own small take-out only chicken/ pizza place in the early 1970's and I thought this might be a good idea for me as well. The only question I thought would be 'How much capital is required to start?'.
I researched the 'Little Caesar's' pizza chain. They have a simple operation of pickup pizza's at $5- $7 dollars each and they see a good deal of business from me. I was shocked by the capital requirements: http://talkto.littlecaesars.ca/form2/fran_opps.asp
Minimum liquid assets on hand (cash), $75,000. Mininum net worth $200,000. Ablity to get financing for an additional $150,000.
If I had $400,000 dollars sitting around I wouldn't be looking to start a small pizza place; I'd be sitting on a beach somewhere sipping tequila's all day, every day.
I can't imagine anyone working their way up anymore. Who has access to that kind of capital requirement? The rich can get richer, but fat chance in anybody else joining the party!