Question

When determining your business's initial cash needs, you should determine how much money you'll need to live on for the first _______ of your business's operations.

A) 1 to 3 months

B) 1 to 6 months

C) 6 to 12 months

D) year

Answer 1

The answer is d) Year

This is because of all the different factors and financial differences that a person will experience when they are first starting their own company. You need at least a year before you can make definite financial decisions in your company.

Answer 2

When determining your business's initial cash needs, you should determine how much money you'll need to live on for the first D. year of your business's operations.

It's expensive to start a business and it's important to have a years worth of living expenses saved up because statistically, most businesses do not profit within the first year. Most people who start a business need to understand that it's a slow start to a potential bigger gain as time passes and money is made.