Hi everyone
Probally a stupid question ... If a small busines does not turn a profit for say three years, how does the busines owner survive if it is your primary source of income? Does this mean you would be paying yourself a salary? If so do investors look down on this?

XBanana-
It varies to much to just give you a generic answer. one of your company's costs may be the owners salary... in which case he is getting paid even if the company isn't making a profit, it's coming from capital. Either in the form of owner investment or debt.

In a perfect world scenario, it would be great to be able to start a company without needing to draw an income from it for a year or longer. But most small business are started with an immediate need for income, so you hope you capital will last until your income exceeds costs/salaries...

I'll say go with what you have in your business plan. Be sure to set realistic goals especially in the first year. Sure, you might very well lose money your first year, or breakeven. I think its important not to price yourself out of the market by aiming for the $30k profit. Again if you have a plan that will make you that much profit in 2-3 years, then go for it.

Good luck. Again that business plan should be your guide. Let it work for you.

In real estate(apartment renting)... usually how long does it take to return a profit?

I'll agree with a lot of the above in saying it depends. How's that for taking a stand?

In my own business which is essentially a service business there was very little start up cost so in very short time I was profitable. I still have a long way to go though to get the profit I want.

One of the factors especially with a service business is the network you already have. To vaguely answer your question Lisa if you already know a lot of people looking to rent apartments you can probably profit rather quickly. If you don't already have this network in place it will most likely take longer.

Chris since what you're planning on doing is related to your current work you may already have a network of people who can recommend you and help you build your client list.

I think you're taking a good approach though in spending time planning before getting started and in doing what you can to be realistic. Be prepared not to make that $30k at first, but also believe in youself and your business that if you keep at it you will get there.