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Some very good points in this thread. Most of them should flick a persons "common sense" switch at outset because anyone with self employed inclinations should at least possess self motivation and have an understanding of basic business elements.
Peaks and troughs are a given with almost any business and one of the most important lessons I learned was to have funds for leaner times and save when times were good. A positive cash position is essential to operate a successful business (it does at least make it a lot easier and less stressful lol).
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