Starting a personal business is the ultimate form of freedom. You are your own boss, you choose your own hours, and, most importantly, you make the big decisions that determine the direction of your business. Being in control is a huge advantage, except in one area: funding.
Money to run a business, hire employees, and managing the costs of day-to-day functions all has to come from somewhere. In the case of your business, that would fall onto you. But running a business doesn’t have to be costly, at least not at first. There are many prime methods to starting up a business without putting forward too much capital.
The easiest expense to avoid is also the biggest in most cases. By working for yourself, your profits are both paying your salary and putting that same money back into your business. By not hiring employees at first, you may have to put forth a bit more effort, but that more than pays for itself. If you hire one employee, for example, at $15 an hour, and they work the typical 40 hour work week, that comes out to an extra $2,400 being spent every month. That doesn’t even include the liability insurance, benefits, and other added costs of hosting an employee in your business.
All the money you can save by working alone can be put right back into expanding your clientele, improving your business, and saving a bit more cash for yourself. If you really need help with a specific task, it is more economical to either ask help from a friend or family member or pay someone for a day worth of work instead of keeping someone on a long-term payroll.
Altering Your Business Strategy:
Examine what sort of business you are trying to create, and look into ways you can save money in all fields. If you are planning on selling items online, see if you can drop ship, rather than have to buy all of your inventory ahead of time. You don’t know for sure if you can sell everything you buy, which may leave you at a loss. By drop shipping, you have a reliable manufacturer with a steady supply of your product ship their product to your customer only after you have gotten paid for it. This means you don’t have to risk any of your own money or have overstock.
If your business requires equipment, such as landscaping, you should look into tools that can accomplish multiple jobs, so you don’t have to buy more than you need. Find equipment that will get the job done for an appropriate price. The main idea is to lay out, ahead of time, what all your expenses will be before you just jump into whatever business strategy you have.
Keep track of all of your expenses. It may not seem like much, but spending a couple bucks here and there really does add up! Organize your receipts, keep track of exactly how much money you spend and bring in, and keep copies of all of your invoices, both sent and received, so you can match up your expenses. If not, you may not realize why your account is showing $328.93 less than you expected.
Better than hunting down all your loose papers and receipts, you should look into keeping all your data organized into spreadsheets or a program that makes your organization process easier. Some websites even provide free trials of their programs. An enterprise data catalog, for example, allows you to test out their programs. It essentially organizes whatever wide variety of data you need to be kept and recorded.
Starting a business can seem like a big undertaking, and it certainly is not to be taken lightly, but it is manageable. Even those on a tight budget can live the dream of working for themselves and setting their own hours.