Entrepreneurs Must Have A Financial Plan
Creating a financial plan for your business isn’t something to take lightly. One reason people never actually become an entrepreneur is because of the financial risk involved. While there is risk, how well you’ve planned to address it can be the difference between success and failure.
For some entrepreneurs, it is possible to keep your full-time job while you work part-time on growing your business. This can be a plus if you can depend on a steady paycheck along with the other benefits from your employer. However, if your business requires you to be accessible at all times, then you might be handicapping yourself by only working on your business during small windows of time when your full-time job allows.
If your business needs your time and attention all day, every day, to be successful, then you should consider having a reserve to cover your living expenses. You’ll hear people recommend having enough money for as little as six months or as much as two years. The correct answer lies at whatever amount provides you peace of mind. Starting a business requires your best. If you are preoccupied about living expenses instead of making your business a success, then you won’t be giving your best self to your business.
By Michael Noice of Entrepreneur