When you take a job, you start making money immediately. Two weeks in, you’re going to get a paycheck, and those are instant earnings. Not so if you start a business. While the ceiling for earning is much higher — maybe millions, if it all works out — it can take time to start turning a profit. How long is it going to take?
Many experts predict that it can take from two to three years. If you’re going to start your own company, you have to be in it for the long haul.
That doesn’t mean you’ll earn nothing in the first month or the first year. It’s just that a business comes with a lot of start-up costs. You may spend everything you earn paying your employees’ wages, paying off your loans, investing back into the company and paying yourself a salary. You could bring in $500,000 the first year and still not earn a profit if you just put all of that money to use back in the business.
Of course, if you are paying yourself a salary, that’s the same as traditionally earning wages at a company that is owned by someone else. Don’t assume you’ll be destitute for years. You can actually make very good money without having a business with excessive profits. It’s all a balancing act, and it may be best for your long-term goals to invest in yourself, your workers and your business.
The financial side of starting a business can be just as confusing as the legal side. Make sure you are well aware of the steps you must take in both areas. There’s nothing to be lost by asking for experienced legal assistance as you move forward with your entrepreneurial goals.