Businesses spend money before they ever open their doors. Plus, there are expenses during the first year or the first few months BEFORE YOU EVEN MAKE A PROFIT. Many entrepreneurs decide they want to raise more cash than they need so they’ll have money left over for contingencies. However, although that makes good sense when you can do it, it is hard to explain that to investors. The outside investors don’t want to give you more money than you need, for obvious reasons it’s their money!
Business Planning can Lower your Costs