In order to be profitable, these are three important things that must be considered by millennials before doing business.
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To face a life full of risks, millennial is expected to be smarter in managing their finances. A lot of millennials are more interested in running their own businesses than working in the office. For those who think about that opportunity to earn more money, here are three important things you should consider before running your own business and taking risks.
1. Research
This first point is important to get your target properly. Research is not only important to be done the first time your run a business but also as long as your business running. Keep your eyes on the latest trend and know what they exactly need to develop your business.
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2. Budgeting
Budgeting is definitely related to financial planning. Therefore, the very first time you are decided to run a business, you need to formulate, execute as well as consider loans to banks, investors, or other sources of funds you need later.
3. Emergency Funds
Even if you use your own money to run a business, an emergency fund is absolutely important. To make it easier for you to prepare an emergency fund, you need to make separate savings specifically for emergency ones and everyday needs. The number of emergency funds can be adjusted to your income, for example, take 10 – 15% of your total income for emergency funds.