I think one of the universal questions that plagues many home business entrepreneurs is the “how long until you start to make money?” question. While the old saying is that hard work pays off, it can sure seem like running in quicksand when it comes to trying to clear a profit with a new business!
The answer to the question, of course, is complicated—it all depends on the type of business you are in, the amount of time and effort that you are able to put into your business, your local market, and a myriad other factors that can make or break a fledgling business. For some start-ups, an individual actually has to assume that he or she will be supporting the business for the first 2-3 years (this can mean needing to hold down another “day” job, or raising the capital in terms of loans and investments to keep the business afloat until it starts to make money.) One of the many reasons that starting one’s own business isn’t for those who are easily scared!
Having low overhead and lower start-up costs can mean that you start to see revenue from your business sooner. But, it may still be necessary to put some of that revenue (if not all of it) back into the business to keep it growing. Experts advise that anyone starting a business come up with a personal/family budget for at least one year and an estimated business budget for 1-3 years. This way you can make a plan for the realities of how money matters may affect you and your family while you are getting your business off the ground. Of course, as we know, there are so many variables and unpredictable things that can happen in this world, so having a budget is really a “plan” for handling the insecurities of a business start-up—not necessarily a predictable promise.
I think it helps to focus on other things in our businesses BESIDES just the money. Otherwise, if we only use money to evaluate our success or efforts in the early months or years of operating our business, we can get pretty discouraged!
See Also: So, How Much do You Make?