Building Emergency Funds Before Starting a Business

Mika

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You cannot make money from your business since day one. In fact for a business it might take over a month, and in some extreme conditions at least 4 months even to generate your first sale. It might take over a year to reach breakeven point and even longer to start profiting. Therefore, when you decide to start a business, you also need to have income source to cover expenses until you start making profits. If you cannot build an income source, you at least need a lot of money in your savings or emergency funds to pay for your expenses. Having emergency funds to help you run business for a long time even when you are not profiting.
 
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