The first thing anyone should do who is interested in starting a building, is go out and buy the game MONOPOLY then invite over a couple of friends and play it over and over again. If you do, you will learn thing YOU NEED CASH TO STAY IN THE GAME!
Seems so simple doesn't it. Yet, if you look at the #1 stat of why businesses fail in the end its because lack of money.
The same things runs true for marriages and the numbers are staggering how many of them failed because of cash problems due to starting a business.
How do you fix it? Well, if you are have a large enough capital influx into your business against a business plan and everything works exactly as your business plan sets then you should be okay. For the 99% of people that this isn't the case, you need to have two sets of income coming in:
1. For your person bills - house, electricity, food, clothes all the necessitates. Where is this coming in? Are you pulling it from the business? You shouldn't have to until your business is grown enough to handle it. If you are married one of the partners has to take the role of provider of food while the other takes on the role of running the business and building the long term income for it.
If this is the case, then structure has to be set from the beginning:
How long will this go on and at what point does it stop either by having the other party come into the business with you or by you selling off or closing business and going back to earning a living through work.
MAKE SURE THIS IS SET UPFRONT!!!
2. Business bills - should only be paid out of the business and you need to make sure you have sufficient capital for your business plan and then some!
Just like in Monopoly you can mortgage all your properties and if you run out of cash the game is over!
Copyright 2009 John DeTitta