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Important Tip on Capital Outlay for Start-Ups
Regardless of what kind of business you start, you must have the capital and available time to sustain your business through the first six months of operation.

by Isabel M. Isidro
Managing Editor

 

Specifically, you must not count on receiving or spending any money coming in from your business on yourself or for your bills during those first six months.  All the income from your business during those first six months should be reinvested in your business in order for it to grow and reach your planned first year potential.
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Once you have passed that first six months milestone, you can set up a small monthly salary for yourself, and begin enjoying the fruits of your labor.  But the first six months or operation for any business are critical, so do not plan to use any of the money your business generates for yourself during that period.

If you've got your business plan properly organized, and have implemented the plan, you should at the end of your first year be able to begin thinking about hiring other people to alleviate some of your work-load.  Remember this:  Starting a successful business is not a means towards either a job for yourself or a way to keep busy. It should be regarded as the beginning of an enterprise that will grow and prosper, with you as the top guy. Eventually, you'll have other people doing all the work for you, even running the entire operation, while you vacation in the Bahamas or Hawaii and collect or receive regular income from your initial efforts.

 

 

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