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You'd be "setting yourself up to fail" at either extreme.

When you leave a regular job to become self-employed full time, you still have to eat and pay your bills -- so if your business plan, personal assets, and loan request indicate that you're not allowing enough money to do that, the lender will turn you down.

On the other hand, if you ask for $50K to pay your first year personal expenses, the lender will probably still turn you down. I'm not passing any judgment here, but my guess is that almost every person who actually owns and operates a business in this community could get by on less than that if he/she had to -- the majority probably get by on less than that NOW (according to USA Business Statistics published by the government in 2005, the average gross income for the owner of a one-person business was $37,058.15).

In my experience, when we as business owners ask someone else for money, they generally want to know how much of our own heart, soul, resources, and lifestyle we're willing to commit (and honestly, that doesn't ever change -- whether you're asking a family member for $2,000 or an angel group for $2 million). So to increase the chance of getting the funds you need, make sure your business plan and loan request present that message.

I hope this helps. Best wishes.

I am doing a tech start up and am happy to say that I have not used one penny from my investor for any personal expenses. I am still working full time and will continue to do so until I absolutely must...having decided to cross that bridge when I come to it instead of worrying about it....

Since you will be retailing online I strongly encourge you to get a job to pay expenses...or better yet...move home if thats an option and work part time for rent and food money and transportation money.

If one of my kids needed to move home because they were starting a business the door is open...good luck.

I think we all understand your desire to pend all your time on your business to make sure it will flourish. However, doubling your business loan to cover you personal expenses is not a good idea. Lighthouse24 pointed are some very good points. Lenders want to be able to see the passion you have for your business and be willing to sacrifice some comforts will be a must especially in the earlier years of your startup. Living on 50k may seem living cheap to you but I guarantee you can survive on much less and probably will have to.

When it was suggested that you get a job to help support yourself during the initial startup I don't think anyone was insisting that it had to be a full time job. If you can find a decent paying part time job you will be able take in a little money while still having the time to work on your startup. I believe the average entrepreneur works around 60 hours a week. If you you actually worked those hours plus 20 hours a week at a part time job you would be working 80 hours a week. I know that number can be intimidating but it honestly is not as bad as insurmountable as it sounds. After saying all of that building in a little (I do mean little) amount of money to cover personal expenses in emergency is not a horrible idea.

I hope this helps and good luck with your business.

50K? Dang I've been living on much less since I've moved out, so I pretty much don't have to worry about having to sacrifice, I'll probably be used to it!