Financial Compatibility
Before you to get into business for yourself selling services,there are two issues to consider regarding financial compatibility--income and investment money. First, when deciding what type of service to sell, you have to consider how much money you want to earn and how much money you need to earn. If you need to earn $75,000 per year to pay your personal expenses, there is little sense in starting a dog-walking service. Perhaps there are a few dog walkers earning this much, but it's not a realistic expectation. How much money do you want to earn--that is, how ambitious are you? Again, you must be realistic and relatively sure the service you choose to sell has the potential to generate enough income to live on in the short-term, and the potential to match your income goals in the longer term. Income doesn't have to factor into the business startup equation for everyone. If you want and need to earn only a little money from a part-tome or retirement business, the income equation will not factor as heavily as other issues.
The second big financial compatibility issue affecting your decision about which business to start or purchase is the amount of money needed to start or purchase the business. Not only will you need to have or have access to the investment needed to get rolling, but you'll also need extra money for working capital to cover day-to-day operating expenses until the business achieves positive cash flow. This can take s week, a month or even a year.
Ultimately, financial compatibility is important when starting a business and deciding what services to sell. If you cannot afford to start the business and don't have the financial resources to pay operating expenses and your wages until the business can break even, you'll probably have to look at alternative options, such as starting part time, choosing a different business to start, or waiting until you have acquired the money needed to get started.