Safety Net: Small is Better

A small safety net when starting a business is a great thing. 

A big safety net means you will probably fail.

It seems illogical, but I've seen it so many times. Having a small cash cushion to get you through a short tough time is a very smart move for a new entrepreneur. However, having enough money to get you through a long period, possibly years of tough times, generally only gives you excuses when it comes to doing what is necessary to be successful.

To quote a reliable source: "It is good for workers to have an appetite; an empty stomach drives them on." Proverbs 16:26

So what do you do if you are fortunate enough to have "extra" capital because you've worked diligently to save? You fence it off.

This is a short post by design. If you would like to talk further about how to create the financial discipline that it takes to be successful in a small business start-up, please click on the Contact link above. I'm always happy to talk.

I wish you the best in all your endeavors.

Mark Goldman