“Your largest wealth-building asset is your income. When you tie up your income, you lose.” ~ Dave Ramsey
Does it take money to make money?
Income represents money you can invest to make more money. If you tie up all your future income, you will always be living in the past. As Dave Ramsey tells his listeners every week, you cannot jump at an opportunity without the necessary cash on hand.
Planning ahead for financial “curveballs”
Entrepreneurs need to plan ahead for business expenses – and planning ahead includes collecting the funds you need to start your business. Some people do this with credit cards (not a fan at all, but I’ll touch on that later), which can be useful IF you keep your debt to a manageable level. Risks arise as you go overboard buying things you don’t need.
Your Business Plan Lays Down the Groundwork
Your business plan can help you keep track of the financing amount you need and provide you with a blueprint for the necessary purchases you need to make before launching your startup. If you are starting a business that requires an inventory, your start-up capital needs to be greater than if you are starting a service based business where you will make money from your labor.
Successful entrepreneurs also know the value of keeping cash at hand to take advantage of unexpected opportunities. And they know the importance of saving time for the future, by not paying for the past.
Do you have any business startup stories to share about financial tips and tricks?