FINANCIAL STATUS

The process of starting a new business or taking over an existing business can be overwhelming. Fortunately, you can make that process a little easier by answering a few simple questions to get your off of the right foot.

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Some of the questions you need to answer include:

• Home much is your monthly cost of living?

• What areas can you cut back in spending?

• How much debt do you carry?

• How much do you have in savings?

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Those questions are designed to give you a better understanding of your current financial situation. Once those questions are answered, you can then proceed to the next round of questions which include:

• Should you continue full-time employment until your business can pay your salary?

• Can your spouse’s income cover all family monthly living expenses while you get your business up and running?

• Have you saved enough to cover six to 18 months of expenses? This is the average time it takes a new business to make a profit.

• Do you need an investor or bank loan to cover start up costs as well as six to18 months of expenses?

 

Once you have a better understanding of your financial status, the Miami Area Economic Development Service, Inc. can help focus in your business model.