Capitalizing your new venture is an integral part of establishing a business that can grow. The following questions should remind you that you must seek both a return on your investment in your own business as well as a reasonable salary for the time you spend in operating that business.
1. How much income do you desire?
2. Are you prepared to earn less income in the first 1-3 years?
3. What minimum income do you require?
4. What financial investment will be required to start and operate your business?
5. How much could you earn by investing this money?
6. How much could you earn by working for someone else?
7. Add the amounts in 5 and 6. If this income is greater than what you can realistically expect from your business, are you prepared to forgo this additional income just to be your own boss with only the prospects of more substantial profit/income in future years?
8. What is the average return on investmen