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Having Too Much Startup Money

The most common problem of home-based entrepreneurs is the lack of capital to start a business. But there’s the flip side to it: when having too much money becomes problematic and the entrepreneur becomes wasteful.

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February 8, 2011 By //  by Isabel Isidro Leave a Comment

The most common problem of home-based entrepreneurs is the lack of capital to start a business. But there’s the flip side to it: when having too much money becomes problematic.




Mark Warda in his book “The Weekend Small Business Start-Up Kit” described this problem perfectly:

It probably does not seem possible to have too much money with which to start a business, but many businesses have failed for that reason. With plenty of start-up capital available, a business owner does not need to watch expenses and can become wasteful. Employees get used to lavish spending. Once the money runs out and the business must run on its own earnings, it fails.


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Filed Under: Financing Tagged With: Startup Financing

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