A contact of mine wanted to know what the biggest issue would be if he started a business. The greatest issue is cash management. What is your shelf life of cash? A simple note of caution for self employed / startups - realize that during a downturn credit usually becomes much more difficult to obtain if even at all as many of us now know.
Just as importantly it also means that if your clients / customers are small businesses they too may find credit difficult to obtain and may not be able to pay you on time or even at all. Understand as much as possible about your cash needs and the businesses cash needs before you starting on your own to prevent becoming a statistic of failed businesses with great ideas and not enough cash.
Best of Success,
Eric Mitchellette
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