In this series we’re discussing seven keys to successful business startups. The fourth key is counting the cost.
As a commercial lender, very few budding entrepreneurs came to me with an actual budget for their new business idea. Yet, one of the most common reasons for business failure is being undercapitalized and overextended.
Most entrepreneurs are overly optimistic about how quickly they can generate revenue in their new business, which puts their family and business at risk financially.
In Luke 14:28, Jesus said, “Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?”
For a startup to be successful, expect very little revenue your first year and develop your plan accordingly.
