Remember that money doesn’t bring happiness.
People with ten million dollars are no happier than those with nine million.
Irving R. Levine
Irving R. Levine was a financial reporter. That statement was tongue in cheek but when it came to money and finances, he was right on target.
Money can make the difference between a successful business and a failed one. That is why it is so important to create a feasibility plan when starting your new business. You need to know how much money you are going to need to start and operate your business during the first three years — and, just as important, where that money is coming from.
Are you going to be able to make a profit, break even, or is it looking more like a loss? What expenses will you have? What is your projected income (and be realistic)? This is not the time to let the “dreamer” side of you take control.
If you are going to be a one-person operation, can you reasonably put in enough hours to create the products or produce the services that will be required to make the income you are projecting? And don’t forget that a one-person operation has to do much more than just produce products and services. What about the time necessary for marketing? For billing? For ordering products? And for all the other parts of conducting a business.
If you’re starting or operating your business without any kind of financial plan, you’re playing Russian Roulette!