before the savings are depleted or should we continue to just burn through those until there is zero left? you never want to hit zero. yes. i mean, the to answer this question, the first thing that comes to mind is that you have to think about the likelihood of failure and failure two years out, three years out and four years out, and you have to think of who is going to be hurt the most in this. what is hard for people who start businesses who don t get outside investors into the businesses is that it is, you know, their savings and they feel the failure more than if they had a venture capital backer for instance. if you start to borrow money from the friends and family, they may suffer when your business fails. you should always be talking to people about getting the money even if you don t need it and you don t want to be down to the wire and think, who is going to give me money. business is like dating and you nef want to be desperate. so not only if you have the chance n
borrow money from the bank before the savings are depleted? or should we continue to burn through those until there s zero left? i think you never want to hit zero. yes. to answer this question, i guess the first thing that comes to mind is you really have to think about the likelihood of failure and failure two years out, failure three and four years out. you have to think about who s going to get hurt the most in this? what s very hard for people who start businesses that don t get outside investors into their businesses, is that it s their savings. they feel the failure more than if they had a venture capital backer, for instance. if you start borrowing money from your friends and family you may also they may suffer when your business fails. you should always be talking to people about getting money even if you don t need it and you don t want to be down to the wire and then think, who s going to give me money? i say that business is like
this. what s very hard for people who start businesses that don t get outside investors into their businesses is that it s you know, it s their savings. they feel the failure more than if they had a venture capital backer, ference. if you start borrowing money from your friends and family they may suffer when your business fails. you should always be talking to people about getting money even if you don t need it. you don t want to be down to the wire and think, who s going to give me money? i say that business is like dating and you never want to be desperate. so you not only if you have the chance now while you re still ahead to get some padding room in there, you re not only creating a cushion for yourself but you re also developing a relationship with your lender which is really big. because when it comes time for you to really need some cash you have a credit history established. all right. stella and vanessa, thank you so much for all of your help. really appreciate i
their savings. they feel the failure more than if they had a venture capital backer. if you borrow money from friends and family, they may suffer. you should be talking to people about getting money if you need it, don t get down to the wire. i say business is like dating. you never want to be desperate. if you have the chance now, while you are ahead to get padding room, you are not only creating a cushion for yourself, but developing a relationship with your lender. when it comes time to really need cash, you have a credit history established. stella and vanessa, thank you so much for all your help. appreciate it. thanks. to learn more about today s show click on our website, it s openforum.com/yourbusiness. you ll find all of today s segments plus web exclusive