Today I was watching a clip about a couple who made millions doing construction only to then close it down to pursue their passion in a completely different industry. They literally just closed down what for sure was working and felt that the millions they had was good enough to keep them afloat into their new venture. You can tell they were literally running their current business just for money and so they wanted to do something they were passionate about. As it turned out, they did a complete flip as this new business literally cost them things like their home as business was not doing well.
While the answer from a third party perspective would be that they were silly to close down what was working, I have seen it work too where people literally just sold their existing business and immediately jumped into something different to then make it successful. What would you say is the happy medium? I think what would probably work is that if you are just hard closing something in this scenario that reserving X amount of funds as a beyond the business would probably be the safest. For example, it’s no different than people who work at a job while trying to pursue a business at the same time. Basically, you only allow yourself to invest a certain amount of funds into the venture as you need the rest to live.
It can be very difficult where when you have the money as just staring at that large number makes you say “Well, putting a little more won’t hurt” type of scenario. Next thing you know, that six digit turns into a five and so fourth. If anything, make sure the business itself is keeping it afloat financially I guess you can say. Otherwise it is turning into a costly charity.