Starting a Business - the Money Factor

Speaker: How does money factor into starting a business?
David Krauskopf: Money is very similar to time commitment. You need to make a decision about how much money you are willing to invest and put that -- know that you are putting that money at risk of losing it. So what you have to do is you have to evaluate the amount of money you need and that you will put at risk versus the impact that that might have on yourself and the other people in your life. So you want to talk to your family members and make sure that you will irreparably damage the lifestyle that you and your family feel is needed minimum for you, if you lose the money.
I have direct experience in observing a gentleman who invested about a $100,000 and borrowed another $100,000 to start a business and less than a year that's all gone and he was in additional debt on top of that. So what did he have to do he had move back in with his parents, his wife and kids and start over from absolutely nothing and being in the whole and in hind side he would tell you that he would do it differently if he had to do it over again and he definitely would not put at risk everything that he had in that way.
So money and time as well or things that you really need to balance with what else is going on in your life and make sure that you include the other peoples and other commitments that you have in order to make that decision if you want to go forward. You might decide that I still want to be an entrepreneur but now the timing isn't right because of these issues.


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