Starting Your Own Business: Early questions

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I have a good job right now, but I am risk averse.

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Starting your own business will be riskier than being employed. Because you hold the most risk and have the most to lose.

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What did you do, right at the beginning, for money? I have a good job right now, but I am risk averse. I would like to one day start up a brewery, but the biggest question i initially have in my mind is, "How do I pay myself before i even start making money? What replaces the loss of a steady paycheck?"

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If you are willing to give away ownership, you can take on partners. I know we have talked about this idea and I have a few wealthy people who have shown serious interest in giving capital up front for ownership. I want to start with brewpub because I can pay that off myself and not give away ownership. My plan is to have at least 6 months living in my bank account and I'd expect to not get paid for a while. Especially in brewing where your cash cycle is so long.

You have to pay for grains and such, brew,ferment, age, then sell. If you are selling to a distributor, expect another month before you are getting paid after delivering the goods. That means you are gonna have a 2.5 month period where you have paid for goods but aren't getting paid for your production.

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Does some of the loan money go towards paying yourself?

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With little to no "professional" experience it's going to be damn near impossible for you to get any type of loan. Some may take a chance on ownership because there is more reward for the risk taken. While getting a loan would be ideal, I doubt you will find even a small business loan and if you do, they would likely only give you 60% of what you need to get business running.

I saved enough to have a year's amount of income at my previous "employed by someone else" compensation rate.

I decided going in I would give my business 6 months to be self-sustaining. If by the end of 6 months more money was going out than coming in, I would start the process of shutting down and I would still have 6 more months of savings to live on while I looked for a job.

Get as much work experience as you can first.

Try to work for someone else in the business for a while, if you can.

Determine to know your craft inside and out.

Know all the rules and regs: state, local & federal.

A year of living expenses is a must, you probably will not make a profit for a least a year.

Become so good at your craft that your reputation will be a magnet for future investors.

ETA: Don't fudge your estimated expenses. Think of daily operating expenses in your mix as well. Try to foresee unknown variables as well, these can kill your business.

Good luck