Start-Up Costs

and, to keep it open

Many small busi­nesses fail each year. Some experts quote research show­ing nine of ten start ups will be gone within the first 2 years. Oth­ers say five out of ten new busi­nesses fail within the first 5 years. Let’s just say the fig­ure is large and you do not want to add to the sum.

Here, we’ll look at how to pre­vent a main rea­son for fail­ure: Inad­e­quate or faulty finan­cial pro­jec­tions and inad­e­quate funds (or per­sonal sav­ings) to cover all the busi­ness expenses until the busi­ness begins to gen­er­ate a pos­i­tive cash flow.

To avoid this, you need to know how much money you have, how much can you’ll need for start-​up costs and how much money it will take to stay in busi­ness. [Read More]

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