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
You have the wrong idea about starting a business.
u/Truthkeeper is totally right. You just take the loss and live off your savings. You don’t just start a business and make that your income. The losses you take to keep operating at the start are just like the “losses” to buy ovens, a property, trained dolphins, or whatever is needed to get your business even open for Day 1.
It’s not like on TV where people start a business and that’s their new income, pretty much every new business is a giant pile of loss until they recover all their startup expenses. Of course any business hopes to have a steady stream of customers, but a steady stream is never gonna have you making profit right after the large investment to to get started.
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