When someone is preparing to go into business, one of the first things we talk about is how much money they have saved. One of our favorite sayings here at BizWorks is just because you go into business today does not mean that you will get paid tomorrow- or even in six months! If you plan to quit your day job and work your business full time we recommend at least six months of savings – we prefer a year to help pay your living expenses.
Most people come into their business and expect that money will flow through the door quickly. It does not always happen. The business takes time to set up and it takes time to get clients. Once the job is done, then they have to be billed and it takes time for that bill to be paid. You still have bills to pay in your business and in your personal life so you have to have money saved in order to keep everything running- your household and your business.
So if you have that great idea and wanted to get started NOW, take the time to make sure the money is there to support you- it gives you a greater chance for success if you have the money saved to get you through the beginning stages of your business.
Suzanne Cormier
Executive Director
BizWorks (Small Business Incubator)
Follow Suzanne Cormier on Facebook and
Twitter @BizWorksCenter
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