Three
3 is the average numbers an owner operates a new small business before they take any money out for themselves. Can you go three years without an income? What can you do without? What can is an absolute must?
Well, you’re not going to have a social life because you’ll spend every spare waking minute on the new business. You probably don’t even need cable TV. New car, never mind. Health insurance, a must. Nothing can sink your business like a health-care debt. New clothes, I don’t think so. By the way, that goes for your spousal equivalent, because you’ve got their commitment to this move in your personal economy. Correct?
Do you have kids in college? How will a startup impact them? You need to know.
How are your parents? Is their health good? Are their finances good? Are you going to have to help them if something goes south? Got’ta know.
You get the idea.
Remember 3 years is the average. Don’t plan for the average. Plan worst case 5 years. Can your spouse go back to work? Can you have a second job?
This all brings up a big question. Why are you starting up this business? If it’s for immediate income you might need to re-think your plan.