Let’s say you went $100,000 in debt starting a business, and it costs $5000 to operate every month and you make only $4000 every month for the first year.
But you have a house and family, etc.
Where is the money going/ coming from??
In: Economics
Most businesses are built on credit. Credit can come from savings, friends, family or banks. You float until youre profitable. People that go into business usually dont have anything to lose or some money saved up to cover day to day expenses to a certain point. You dont need a lot to start something. If you have a decent product, service, or plan, things can just snowball and bring in cash and you can use that number to gain more credit to float or use the credit/cash to improve the business and gain more revenue. Any business bringing a 1k in revenue is worth something in someones eyes. Theres potential to take to make more if there are buyer in some shape or form.
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