Starting a business
You may be ready to break out on your own if you have an idea for a great company or small business. However, 82% of small businesses fail because of cash flow issues; about 79% said they started out with too little money.
According to the Small Business Administration, you can open micro-businesses for less than $3,000 and many home-based franchises only cost between $1,000 and $5,000. That may not seem like a lot of money, but if you’re paying off multiple credit cards, it may be a struggle to get to the starting capital you need.
Even if you’re not struggling to generate startup capital because you may have investors or partners, starting a small business still requires a financial safety net. That way, you can maintain financial stability while your company is gearing up to generate revenue.