Years ago I taught two programs for Wayne State University entitled Starting a Profitable Small Business and Running a Profitable Small Business. Inevitably one of the most pressing issues for those starting a business had to do with finding the money they needed to kick things off while for those already in business the issue was where to access cash to keep things going.
Fast forward to 2010 and the attached article written by Tom Harnish entitled “Finance Your New Business: It’s Not as Complicated as You Think”. The article concludes, 20% of all business start ups use some form of bank financing and 20% arrange capital from “friends, family and relatives”. The lions share of new businesses, however, are bootstrapped through its owners cobbling together approximately $10,000, who then patiently build their empires and have a keen sense of cash flow. By jumping into business before you are ready, or to put it another way, making an emotional decision rather than keeping things “strictly business”, you can only count on one thing; failure.
While patience, planning and living by the age old adage “cash is king” won’t necessarily guarantee your success, it will certainly put you on solid footing. Please see the link to Tom’s article below.
This article was written by Gary Field, CPA at Numerico, PC. Click here to view Numerico’s website.
