Small business answers — NOW!

Start-up losses

Is it normal to be frightened at the reality of projected operating losses for my start-up? 
Yes. But frankly, there is something more frightening: not knowing about those losses because you didn't do the proper sales projections and expense planning. If you are starting a business and you aren't projecting initial losses, go over your budget and sales projections again.

Start-up losses are supposed to be frightening, or everyone would be doing starting a business. Only those who can look those losses in the eye, and work to overcome them with future performance, should ever start a business.

The reason why start-up losses are part of every founding is because of all of the initial expenses that are required to be paid for months, sometimes years, before consistent revenue from customers has been established.

This is why adequate initial capital is critical to the sustained success of any start-up, and why failing to do this is the primary reason 50% of all small businesses fail in the first four years. 
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AskJim ID: 37