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By Dan Boudreau
One important consideration when starting a business, is to clarify how you will pay your personal expenses while the business attracts customers and generates cash flow. No matter who you are, there is a core group of costs that never go away, such as food, shelter, electricity, medical, and taxes. Of course, if you own a house, you can add a cascade of other expenses to this list.
New businesses are rarely profitable in the early stages. It might be months or even longer before a new venture can pay its owner a wage. In the meantime, how do you pay your personal bills? How will you fund that Costco pallet of Kraft Dinner?
For those entering the small business arena with little or no cash, it is often problematic to assume that you will be able to pay for groceries out of your business cash flow. Unless you are in great financial shape already, you will need a plan.
The following are some of the ways entrepreneurs fund their personal expenses during the start-up phase.
Creative entrepreneurs each find their own way to mitigate start-up cash flow challenges. I’ve detailed a few of these in my new book, Pre-Launch Doodlepad: Self-Assessment and Feasibility Workbook for Small Business Start-ups, to be released on March 9th. Learn more at Amazon.