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Understanding startup losses

Question
Why is there so much loss at startup? 
Answer
From a full stop, it takes more gasoline for a car to go the first quarter mile than it does to go the second quarter mile. Correspondingly, a new business with one-time start-up expenses and little or no customers is like that car getting rolling.

The reason so many start-ups fail is because they don't begin life with adequate initial capital to cover the early losses until sales volume and operating efficiency can be achieved. 
Brain Trust contributor: Author of Hurdle: The Book on Business Planning President, Palo Alto Software
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