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You just made your
first sale. How much are you going to reserve (retention ratio), how much are
you going to spend for more raw materials, travel, sales/marketing, take as
income, or reduce debt, and how much will you give away? Pushing money back
into the business, taking nothing (and very little for many years) is the story
of many small business owners.
How
are you coming on that business plan?
Read
Albert Black (10 years pushing
everything back into it), Bob
Orenstein (16 years before taking any money out), and
Bill Tobin.
"Starting a
business is not for wimps," says Marc Katz.
Once you have
something that looks like positive cash flow, you can begin looking for
debt-based capital through the banks and other financial
institutions.
For further
research:
- Marc Katz. A New York Style Deli in
Austin, Texas
- Bob Orenstein. Turned his hobby,
wine collecting, into a business.
- Bill Tobin. First person to make $1M
on the Internet (1994).
- Your business plan. No moaning. You have to have it. Be sure
there is a section within it that well defines your business model.
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