The reason is simple. If an entrepreneur has personal finance issues, such as lack of savings or lackluster cash flow, they will end up dipping hands into the business’s money every now and then to make ends meet. This threatens businesses ability to be profitable and expand. This is the number one reason
small businesses fail in the first few months to years of launching.Run your business part-time and for elsewhere full-time
The focus here is to work full-time elsewhere. This means that your business will get every little attention during this time. By working full-time, and with a proper saving plan, you will be able to save enough money to support yourself in the first one to two years when you would be battling to make a solid foundation for your company. You might need to work for up to two to three years before you can save enough to start your business. Admittedly, though, that would depend on how much you earn.
It probably sounds discouraging to say you should work three year to save enough for your business, since you came here probably looking for a quick fix. However, it’s just the blunt reality of things. There is simply no fast way to save. That’s why it’s called saving.
However, the other part of you running your personal business on a part time basis is meant to alleviate the mental stress of your feeling your dream is slipping away. If fact, you should consider it mandatory rather than optional to run your business on the side while you work full-time elsewhere.
While using this approach, you will, first, get to know how passionate
you are about the business. If you weren’t as passionate as you thought, you’ll just find out that you’re losing interest gradually as you earn the much-needed cash from your full-time job. That means you were just interested in making money, but thought you wanted to own a business. That would save you some precious time of your life.
However, if, on the other hand, you find that your passion for the business is growing, still this approach positions you to launch a successful business. As you’re saving to get a handle on your cash flow, you’re also building your business gradually. In fact, this approach means that, by the time you decide you’ve saved enough, your business will already be generating cash flow.
Admittedly, this strategy might not work for all kind of businesses, especially the ones that have their peak business hours coincide with your full-time job. In this case, it makes sense to convince your spouse or partner to work full-time to support the family. This makes it easier for you to get credit cards and other forms of personal loan. You should know that some cards
are actually made to help small business owners overcome personal finance crisis so they can focus on building profitable business.
In summary, though, if your type of business can allows the strategy described above, you should definitely consider it.