That approach that in theory sounds great. The more time you have to work on your business, the more likely — and more quickly — you can make it a success.
“If I didn’t work at Red Lobster for five years?” John says. “I made $30,000 a year, which equated to $150,000. I had medical benefits. I was taking food home at the end of the night, so I had free food. And I was using the staff at Red Lobster to help me at the flea markets.”
The math is simple: To make $150,000 in profit, John would have needed to generate $2 million in FUBU sales. For a small startup, one long on ambition but short of capital, selling $2 million worth of products was impossible.
A huge percentage of startups fail because they run out of money. (And even if they don’t, chronic money problems can lead to making poor long-term decisions.) It’s incredibly hard to finance your business and your personal expenses through savings, much less whatever revenue you manage to generate.
This content was originally published here.