Eli5, how do new business that make a product that can taken years to get to market ever make enough money to stay in business while they are waiting for their products, especially at the smaller scale? I’m thinking thinks like cheese, wine, whiskey, etc.

Question

Eli5, how do new business that make a product that can taken years to get to market ever make enough money to stay in business while they are waiting for their products, especially at the smaller scale? I’m thinking thinks like cheese, wine, whiskey, etc.

In: 5

Answer 1

Short answer.
A solid business plan. Loans, and credit with as much capital as you can raise to start. Banks understand that any business will take at least 5 years to start making money.