Lower initial costs are crucial for several reasons:
1. Financial Flexibility: By minimizing initial expenses, businesses can maintain greater liquidity and flexibility in their finances. 2. Reduced Risk: Lower initial investments reduce the financial risk, making it easier to recover if the business does not perform as expected. 3. Faster Breakeven: With fewer upfront costs, businesses can reach their break-even point faster, ensuring quicker profitability. 4. Scalability: Limited initial expenditure allows room for future scaling based on the business's growth and market response.