Knowing when to use personal savings is crucial for maintaining financial health. Entrepreneurs should consider using their savings for:
1. Seed Capital: Initial funding to get the business off the ground, covering costs like product development, market research, and initial marketing efforts. 2. Emergency Funds: Unanticipated expenses that could jeopardize the business, such as equipment failure or sudden market shifts. 3. Growth Opportunities: Strategic investments that could significantly boost business growth, such as expanding to a new market or launching a new product line.