“Kathleen, I read two of your articles about entrepreneurship in Panama. You are making me really more curious about it. I’ve some questions for you.
“First, how much money do we need as a couple to survive first months before the business starts to bring in some money? We’ll probably have a lot of installation expenses and also for monthly fees.
“Second, do you think that Panama is a good country to start an IT business?
“Thank you very much.”
–Robert M., United States
Impossible to say how much money you’d need before your business started throwing off cash. When we started our Live and Invest Overseas business in Panama, we had enough cash on hand to cover one year of operating expenses. Our projections had us generating enough revenue by the start of year two to keep the business funded. We wanted to have enough cash set aside in advance to cover us to that point.
Your projections could be very different, depending on the type of business you want to start, your sales expectations, associated operating costs, etc. I’d say a good rule of thumb, though, if it’s possible, would be to set aside in advance whatever you think you’re going to need to fund the business and to cover your own living expenses for one full year.
Panama is definitely a good place for an IT business. Look at the incentives for setting up in Panama Pacifico or the City of Knowledge.
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