How soon should one start to spend from his business?

[Thosynho]

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.

One needs time to grow the business to be financially stable to the extend that you don't need to spend your personal money to run the business. Until this is achieved, spending from that business could affect it from growing.

 

[Smithkid]

The estimated time to start spending your business profits depends on the profits and the planned project or strategies. The important thing is not to spend more than necessary since you have to save it for unforeseen expenses or opportune investments, for example buying products at prices below market prices (offers)

 

[Doradorwa]

In as much as I cannot advise against spending from your profit in your business but when you spend the most spend wisely you must spend to have more money in your business but when you want to spend for personal reasons you must spend four solid reasons and you must spend when your business is steady and and has gained a lot of ground.

 

[Heatman]

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?

As much as you want to grow your business as it's still new, there are some expenses that you can never avoid to do on daily basis, for example with your feeding, transportation and health wise. Aside all these, you can pause other unwarranted expenses till you have grown up your business well.

 

[Kamon c4]

There’s no specific time to when you ought to spend your profit but it’s most advisable to be self disciplined with business money. It’s ideal to make sure your business yields you the starting capital before you can start spending the yielded profit. At Thisbe stage you’ve realized your capital and the business can run itself from the accumulated profit

 

[Heatman]

There’s no specific time to when you ought to spend your profit but it’s most advisable to be self disciplined with business money. It’s ideal to make sure your business yields you the starting capital before you can start spending the yielded profit. At Thisbe stage you’ve realized your capital and the business can run itself from the accumulated profit

Exactly, expenses never gives you a heads up when it's going to be coming. What you can do is manage how you deal with such expense. Cut them down as much as you can in order not to run into too much cost and kill your own business that is new.

 

[Onachukwu]

It is impossible to define an average time to profitability for a start-up company because different start-ups will measure profitability in different ways. In conventional terms it can take two to three years, but that doesn't necessarily mean you're doing poorly.
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It is impossible to define an average time to profitability for a start-up company because different start-ups will measure profitability in different ways. In conventional terms it can take two to three years, but that doesn't necessarily mean you're doing poorly.

 

[mizzzlotam]

The reason why new businesses fail in their first year is because people start it and already made plans to sustain their whole family. You shouldn’t be looking to spend money from your new business for about 6months. If you can hold on and reinvest your business stands greater chances of succeeding.

 

[Ayokex]

So many people have ignorantly eaten their seeds. When you first established a business you need to give it time before you start to expect to take something out of it. One of the most important business principles is never spend your first profit. You might be happy that your business is already yielding returns but it's suicidal to start spending that profit at the initial stage.

 

[Ifective]

One can start spending from his business when one has reached a a certain target. People often set target for themselves when they enter into business. Therefore, they start spending profit from the business when they meet the first target that they have set.
It is very important that one tend to achieve his or her target before spending from the business

 

[Briangsam]

Every business is expected to be able to cater for our needs in a way or the other. But one needs to be very conscious and aware of not digging in into business money for personal needs. Your business must have yielded multiples of your capital before you can even thinking of spending from it.

 

[Kingsley]

A business should commence as soon as one is financially and psychologically prepared to start. And one should put other things in to consideration like location and the target segmentsof clients one intends to satisfy sat is your products or services.

 

[Milz]

A business should gain ground before the business owner think of spending his profit on other ventures. Failure to be financially disciplined will result to business crash. Being disciplined is key to business growth.

 

[springtech]

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?

Money management is one must have skill for all business owners.

There is a point called the breakeven point, which is where a Business is able to make enough money/sales/returns on investment which is enough to settle the business expenses.
This is not even a profit point. Only that at this point the business is not making loss, but it is also not in profit yet, so it is not a time to rejoice and start spending.

However, when a business is in profit, you can begin to spend from the profit.
However for a serious minded business owner, that time is the time to plough back the profit made back into the business so as to expand the business.

 

[Mandypaul]

You are only permitted to spend money on things that can improve the business but you are not permitted to spend money on something that don't have anything to do with the business anytime soon until you make a lot of money that you can spend confidently without affecting the business.

 

[Tollytee]

I think the right time a person can start spending from his business is when he or she is making profit but not just a profit but a very reasonable profit and he could invest with the money his profit ..so as to see more money

 

[Robrown83]

I don't think there is any particular time that someone can not spend from his or her business so far you have deducted the market cost and running cost from the selling market, anything that remain is your profit so you can spend from it unless you wish not to spend it and use everything to buy another market/product.

 

[Sunnytee]

Building the fundamentals of a small business can take about a year but most small businesses take at least two to three years to reach profitability.

 

[Rainlover207]

Two to three years 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 three years or longer to make money.

 

[Neeta313]

Once you start making sales from your business, you will get the money used in purchasing them including the profit, now you are suppose to keep the profit aside then use the balance to repurchase. A wise entrepreneur will save that profit till it grows to an extent, except when pressing needs arise, then you can touch it, if not, save your profit till it grows, then you can start taking out of it to use on relevant things.