How soon should one start to spend from his business?

[Thosynho]

New business needs time to grow to an extent before you start spending from the profit. You must grow your business to a stage where your income from the business is multiple of the capital that you use in starting it. You must have an estimation of your daily income which you determine your profit from. There is nothing wrong from spending from the money generated from the business after all business is created for the purpose of making profit.

Wow, what a brilliant response you've got here. Spending from the business return is not bad as you have rightly said but one needs to grow the business to a level that the profit generated is almost double the initial capital for the investment. Nice one.

 

[Bart Simpson]

Normal people seem to believe that the moment they start an online company or start selling the next big thing, they can do everything within their capacity to quickly buy anything with in their financial means. As long as you're not spending your personal money on business crap, you don't need to worry about your money growing. You should be able to know which money is for business and which money is for personal use.

 

[Nurudeen]

I don't think a new business owner ought to be spending from his per her business funds in less than 6 month to the business. One need to set aside some emergency funds incase some expenses arises and it won't even cause someone to touch into ones investment capital and profit

 

[eenya001]

When your business revenue is greater than your operating cost and also your turnover of profit is getting high, that is when I believe you should consider spending some of the money you make from your business, but before then don't make such mistake.

 

[Hassan14]

Lots of new businesses established did not actually last before they wind up or crashed. One of the reasons to this is because some entrepreneur are too much in haste to start spending from the little profit the business has generated. Instead of re-invesitng the profit to roll over and produce huge profit.

How soon can one begin to spend from his business profit?

It takes two to three years to make a profit in any business and in any business that can make a huge profit, so we have to work hard and work day and night and work with them. And if it takes a lot of hard work, it can take even less time to succeed.

 

[sam386150]

For me don't think it's advisable to Spend from your newly business income you need to at least from 2 to 3 years before you start spending from your business newly business is not advisable to spend from there yes it will cause you break down in the business.

 

[Erik4150]

It depends on how much profits the business is generating every month. If the business owner is confident that his business can keep generating profits consistently then there is no harm is spending from his profits.

 

[Felixko]

In a new business as a stakeholder or a business man is not suppose to start spending a profit from a business as soon as it started atleast four to five years time.

 

[Khezo]

It all depends on how profitable your business and how much gain you see from it. But I would advise not to start spending your profit almost immediately you start making It

 

[Xerryl]

New business needs time to grow to an extent before you start spending from the profit. You must grow your business to a stage where your income from the business is multiple of the capital that you use in starting it. You must have an estimation of your daily income which you determine your profit from. There is nothing wrong from spending from the money generated from the business after all business is created for the purpose of making profit.

I agree with you. Spending money from a new business has kill so many careers.

 

[Aminat]

You can start spending from your business when your business has stood firmly.one should not start spending at every little profit he/she makes.instead you can wait till you've recovered your capital at least twice.

 

[Taimoor Jutt]

It depends on types of business, if there is a business which is known as góod profit business the it will give you profit soon to spend from profit. But it is all about patience and with calm headed. So they should more patience and remain confident. After some time you can get enough.

 

[Shigobad20201]

You can begin spending from your business profit if you have realised three times the money you used in starting the business, it's not good to start touching the profit cos you don't know what might happen later

 

[Senator]

Lots of new businesses established did not actually last before they wind up or crashed. One of the reasons to this is because some entrepreneur are too much in haste to start spending from the little profit the business has generated. Instead of re-invesitng the profit to roll over and produce huge profit.

How soon can one begin to spend from his business profit?

Before starting to spend from your business, you most know how far the business has gone.
Spending from your business is not even ideal, the only spending that is allowed is, when is the ideal time to start paying yourselves from your business?
Your business have to grow, be able to take care of itself and extras before spending and paying yourselves.

 

[Ralphjoe]

New businesses shouldn't think or contemplate about spending from their profits within the first two years atleast. This time is enough for a business to be established as to be able to start reaping from your business profit.

 

[Greatguy1]

As one begins to profit from business, spending from the business becomes a cautious move. One should not spend on frivolities. The aim is to improve the business and possibly expand. Buying or spending on things that will improve the business should be a must and given a priority. Do not draw out cash from an incubating business. Allow it to grow and with time and when it has matured it will pay off all expenses.

 

[Ridorz]

The spending of business profits untimely is a part of calamity of business. The right time to be start spending a business profits is when the business expand and growth more to like 60%-65% in gaining profits. This is not have to do with fixed time, it's just depends on how your business fastly grown.

 

[Damismiling]

Two or years or more is the standard estimation for how long it takes a business to be profitable. That said, each startup has different initial costs and ways of measuring profit. A business could become profitable immediately or take longer to make profit.

Spending early in business is disastrous and would not make the business grow at all, you must at least record maximum payback then the business should be mature enough to bear that . It Should be noted that you must not spend part of the running capital at all

 

[Adebayonle7]

I learned about cash flow from one of my business classes. Until a business turns cash flow positive, no individual or personal spending should be done from the business if its purpose is not to help the business grow better or increase its revenue. A business only turns cash flow positive when you are able to account for the owner's equity, shareholder's cut, all expenses accounted for, you have realized and payed all of short and long term liabilities and others. Then you're sure the money coming in is now profit. Even at that, it is safe to just remove part of the owner's equity.

 

[Alexandoy]

I agree with the topic of this discussion. One of my best friends borrowed money from me to put up a barbecue business. On the first day the earning was good so I was confident that she could pay me back soon. But after a month when I checked on her the business was gone. Her mother told me that my friend was spending the sales of the barbecue until the capital was exhausted. My take on the business is to spend only half of the profit but you have to leave some profit for the growth of the business.