Building Runway in Your Business
“If you need to be profitable from day one, it's going to be a very short ride.”
In the business world, “runway” is the amount of money or cash in hand that you have to cover future expenses.
In this episode, we delve into this concept, why it’s absurd in a business that’s already generating an income, and why online businesses still need a buffer even though their overheads are low.
You’ll hear about how not having a buffer can negatively impact your decisions as a business owner, the importance of reinvesting in your business versus paying yourself out, and why you can’t expect to be profitable from day one.
We also discuss the benefits of keeping your job while building your business on the side and why you should think about your business as an entity separate from yourself with separate finances.
Having an online business is not for everyone but it can be the best and most wonderful way to live. So tune in today to find out how building runway into your business can help set you up for long-term success!
Here’s a sneak peek of what we discuss:
Definition of “runway” and why this concept is absurd in a business that’s already generating an income.
What a “burn rate” is and how this relates to your runway.
Why we need a buffer in online businesses even though our overheads are low.
How not having a buffer can negatively impact your decisions as a business owner.
The differences between a service-based business and an online business in terms of the buffer required.
Insight into the impact of COVID-19 on online businesses.
Thoughts on reinvesting in your business versus paying yourself out.
Why you can’t expect to be profitable from day one.
The need for another job to pay your bills while building your business.
Busting the myth that if you work on your business full-time, you’ll make more money.
The notion of Barista FIRE in the FIRE (Financial Independence Retire Early) movement and the benefits of a low-stress job.
Why you should think about your business as an entity separate from you with separate finances.
joy & Hustle: The song of significance by seth godin
Resources:
This podcast is brought to you by the Marvelous online teaching platform.
Marvelous is an easy-to-use platform that helps you build and sell your own courses, memberships, and live-streamed programs. Go from idea to open for business in just minutes. If you're looking for a simple, streamlined way to build and grow an online business. You can learn more at Marvelous.
