This is not what you think.

You are the entrepreneurial genius. Yes, everyone thinks you’re a nut, but I’m talking about a different nut.

In entrepreneur-speak, your “nut” is what it costs to pay all your life expenses each month, including the cost of launching your start-up business.

Ask yourself, do you have a regular inflow that matches your monthly outflow without needing to raise investment capital?

Some charismatic people can raise capital to cover their nut. I’ve done that. There’s a lot of risk in that, I discovered. If your sales projections don’t pan out, you’ll run out of monthly cashflow for your basic life expenses. This is stressful, and can block you from realizing your big-picture goals.

A wise entrepreneur once advised me that a good business should generate positive cash flow from the very first day. If you heed this advice in designing your business strategy, you’ll cover your “nut”, and go on to build your genius business with the minimum amount of friction.

Ask Mark

Previously posted at GreenOptions.com

Tags: cash flow, ecopreneur startup, nut

This entry was posted on Thursday, June 26th, 2008 at 10:00 am and is filed under ABC's for..., Ask Mark, Entrepreneurs. You can follow any comments to this entry through the RSS 2.0 feed. You can leave a comment, or trackback from your own site.