Be aware of this when starting a business… [Video]

Understanding the J Curve in Business

When starting a business, it’s crucial to understand the concept of the J curve. This curve represents the initial phase where you spend a lot of money before you start making any. For instance, a restaurant requires significant investment in setup before serving the first customer. Similarly, a product-based business needs substantial capital to produce enough inventory for global distribution before making any sales.

If you’re not ready to risk a large amount of capital, it’s wise to avoid ventures with steep J curves.

Knowing this can help you plan better and manage your finances more effectively.

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