Where’s the money coming from? You’ve got several serious issues when it comes to money to start a business. First, but maybe not foremost, is where will the money come from to start the business. Second, and maybe foremost, is where will the money come from to live on in the early stages of the business? Start-up business financing is hard to come by. If you have a new business, you may want to apply for a loan anyway and get turned down. Then that bank can perhaps help you to go through the Small Business Administration (SBA) for an SBA loan. For the other part of the money issue, what will you live on?, many entrepreneurs will rely on their parents or spouses and rich uncles to see them through the start-up period. Some very smart entrepreneurs have kept their “day jobs” while they got their new businesses going.
One recent example was a high school math teacher who was reaching retirement age, but needed a business to help support him during his retirement years. What he did for the last five years that he taught was to launch a tutoring business to help students who either were struggling with high school math or needed extra preparation for exams to get into college. It took him about two years to get the business running the way he wanted it. He worked an additional three years to iron out all of the kinks in the business before he retired. Now, in his “retirement,” he has his days free, works late afternoons and evening and on Saturdays. This was a smart way for him to create this business. If he had waited until he actually retired to start the business, he would have struggled more than he needed to for the first two years. Many, many businesses can be started this way.