re: New Business Startup Question

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Also figure 25k per month in operating expenses.

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Can you list the expenses that get you to $25k a month out of the gate?

RULE #1 in starting a business. Don't pay yourself with other peoples money. Pay yourself when the business can afford to pay you.

I'm going to elaborate on what I said above. Growing a business takes capital. First, you're going to have a $10000 loan to make payments on IF you can get a loan. Secondly, your investor isn't investing in your business. He's essentially setting up a loan that will take 1/2 your profits for a minimum of five years. As I said, growing a business takes money. You giving away a very large portion of the companies profits every month to pay off debt out of the gate. On top of that you're drawing a salary before the company can afford to pay you a salary.

You are giving yourself little to no margin to grow the business with or succeed. You need to take a very hard look at your numbers and projections and view them with the worst possible scenarios to see if the business can survive. Do you have a business plan?

I'm giving this advice as a business owner who has had two businesses. One that failed and one that is succeeding.