The Role of Money
When planning a new career, quantify how much you will be paid. Is it enough money to support you and your family? How big is the risk and, thus, the financial consequences if you don’t succeed?
When starting a new venture, even before asking yourself how much money you need to get it off the ground, quantify what the return will be to you and if it’s enough. It comes down to one simple question: is it worth it?
Most entrepreneurs, for profit or not for profit, contribute their own time and effort to building and managing the new venture. Estimate what the monetary value is of that time and effort , and include that in the real cost of setting up and running the venture and calculating its return. Even if you’re starting a not-for-profit, because this organization also costs money to run and to pay the bills, before returning its zero net income.
After you have put financial numbers on what the new venture will mean to your own pocketbook, the next step is to start thinking about what money you need to get it going, and where to find it.That is worth a separate letter.
About what we discussed above, I once met of a young lady, an inspired and gifted gardener, who had a good job and a good salary, but wanted to have a chance to realize her own creative ideas, and start her own landscaping business. I helped her organize it, including the planning and financing.
It all looked good on paper, and, in fact, the business became a success and generated the projected profits. But the young lady had to work day and night, and she found that her per hour take-home pay was less than her original salary. She had realized her dream, but the cost was too high. She sold the business and is a happy, creative gardener again.