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 operate the business.
You pay yourself $100,000
You pay $900,000 in materials
You pay your staff $240,000 in total
Your business makes $1,000,000 but is valued by outsiders to be a profitable venture at $2,500,000. You take a loan against your valuation and continue growing the business.
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