Can you make the sacrifice necessary to turn your idea into a business?

This is a step in every entreprenuers journey where honesty should be the driving force. Sincerely take the time to analyze the current situation to seek the best path and set a business up for success. Starting a business can be stressful emotionally, physically, and financially. We are going to look at some of the important financial and personal question to ask yourself and honestly answer to give a better understanding to the above question of making the necessary sacrifices needed.

What are your total estimated monthly living expenses?

During your start up, cash will be a luxury, and stress will be persistent. As you calculate your total monthly living expenses, find a balance between what your minimal expenses are without experiencing undue financial stress at home. Keep in mind that an Investor or lender is not interested in funding your lifestyle; their objective is to fund a business. If your business becomes successful, then everyone wins.

How much money do you have saved for personal expenses that will NOT be used to fund your business?

This is money you currently have and are strictly setting aside for personal use. It may be used to either cover your personal monthly living expenses or act as a cushion to apply to any unforeseen personal needs. These allocated funds should NOT be considered as capital for the business even if the business is failing.

Will you work while starting your business?

The advantage of working full-time is that it generally covers your personal living expenses. The disadvantage is that it takes time and energy away from nurturing your new business.

Part-time work may not cover all of your living expenses, but it can reduce your burn rate if you are living off of savings.

Here were going to have some thorough rapid fire questions to go over for a better understanding of whats going on in your life and to also keep you reflecting on what else might be going on that may be overlooked when the allure of  starting a business blocks out everything else. Opening the scope for a better field of vision in your life. 

• What will your monthly after tax income (net income) be while starting your business (this can come from other employment or investments)?
• If you will continue working while starting the business, does your current contract and/or employer handbook restrict you from engaging in other revenue generating activities in what your employer would define as your time?
• If you will continue working while starting the business, will your boss allow you to do any non-job related work while on the clock?
• If you are distracted with outside work, how likely is this to put your job in jeopardy?
• How many hours per week will you have to commit to other jobs?
• If you have absolute commitments to non-work or non-family related activities, how many hours are committed per week?
• To function well, on average how many hours of sleep do you need each night?
• How many hours per week do you spend in the car or in commute?
• How many hours per week will you be able to devote to starting your business?
• How many hours per week do you spend watching TV and or movies?
• How many hours per week do you spend reading:?
• How many hours per week do you spend on hobbies?
• How many non-work related hours per week do you spend on the Internet (e.g., Facebook, YouTube, shopping, blogging, reading news, general surfing, etc.)?
• How many hours per week do you allocate towards eating?
• How many days per year do you “take off” for holidays?
• How many days per year do you spend vacationing?
• How many hours per week do you spend exercising?
• How many hours per week do you spend with friends?
• How many hours per week do you spend at church and/or with a social organization?
• If you have a spouse, how many hours per week does he or she want to spend with you?
• If you have children, how many hours per week do they want to spend with you, including attending their activities?
• How many hours per week do you spend in any other activity not already identified and accounted for?

There are many aspects to consider and ask your self that adjust the concept of sacrifice. Having a self check to understand what else is also competing for you time can help map out what can be done to keep a good balance in life.