Does my startup loan include living expenses?

Q: How do I get money to live on while I’m taking my business plan to banks and starting my chiropractic practice?

A: First, you should include estimates of pre-startup living and moving expenses in your Startup worksheet, even though these are personal and not strictly business expenses. When you receive your line of credit for working capital, you can use it for personal expenses by writing yourself a check from the business and depositing it in your personal checking account. Be sure to keep the two accounts separate.

After you start your business, you can take money out each month to live on (”Draw”) or you can pay yourself a salary.

The trick is to be sure to take out enough so you don’t have to ask for more money! In other words, DSATM - Don’t Spend All the Money!!!

For more information on this subject, read Planning for Practice Success.