Owners may use their savings or investments When personal savings are used, owners must ensure that they have enough money left to cover 12 to 18 months' living expenses. This will avoid the need to live off the business before it has had time to be well established. Owners should also pay themselves a salary. They must avoid drawing money and goods off the business. Partners Many new ventures involve partnerships.
Partners usually bring in funds and know-how.
They also must share in the profits and responsibilities since they are part owners. Some suppliers will extend credit tom their customers for up to 90 days sometimes. Others may allow their customers to pay only after the goods have been sold. This is a rare occurrence unless the customers are well known. Agents and Distributors Agents or distributors may be required to pay a deposit before products are shipped out tom them.