Don't forget - General Motors and Apple were start-ups once, too.
Kids are in bed. Glass of wine in hand, you are polishing your business plan – and love it. But you are still not sure about the financial piece.
You wake fretting over an article that discussed the high failure rate of new businesses. And you only signed the lease yesterday….
Your friend agrees to put in most of the money as a sleeping partner, and you will do the work. You both think 40% of the business sounds fair.
You’ve worked for months to get to opening day. Now, a week in, you have a huge box of paperwork and no idea what to do with it.
Congratulations. This may be one of the most exciting times of your life. You have never been busier. The adrenaline compensates for the lack of sleep.
There are some key things that reduce the risk that you will ever become one of those gloomy statistics. Amongst those – understanding your cash flows, how much you will need, and when you can repay it. This will be important to your investing friend. And – by the way, that 40% of the profits – was that before or after you took out a living wage?
creating a system for your record-keeping, and helping you keep it straight.
ensuring your systems make more efficient use of your scarce time.
deciding on the right way to involve others.
If you borrow money from a bank, they may ask you for “review engagement financial statements”. We can explain what those are – and provide the necessary report.
We also know some good local resources available to you.
1. Your emotions will fluctuate with your bank balance. Get used to it.
2. Don’t forget – General Motors and Apple were start-ups once, too.