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Thread: Emergency Funding

  1. #11
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    KristineS's Avatar

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    Good point, Coach. I think most people would assume that they won't make money right out of the gate, but that may not be true. I also think you would have to be careful not to underestimate how long it would take to start having a positive cash flow. I know people who think they'll put up a web site and start having orders the next day. Unfortunately, it doesn't often happen that fast.

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    I think the more dangerous thing for some people is not taking into account the costs of operating the business. Especially for people operating business with on going expenses like leasing, phone, utilities, wages, ect. If these expenses are not properly estimated or expected, then this emergency funding may get eaten up much quicker then expected as well.
    Joel Brown
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    That's very true, Joel. I also think it's better to over estimate than under estimate. People try to go by what the current bills are, which gives you a starting point but I'd build in a little fudge factor. That way you have the money if expenses exceed what you had planned.

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