You want to start a business, but you want to keep total control over your results, policies, procedures and products. If you ask for help from investors, they will want to have a say in these areas. So can you budget for a solo business and do it all by yourself?
The answer is yes, but at the same time it depends on the capital you have and what you are willing to do to make it work. Here are seven steps to budgeting a solo venture without investors.
1. Save all you can
Of course, the best way to start your business is to pay as much as you can without going into debt. This means that while preparing to start your business, you need to save as much as possible. It can mean giving things for a while until your business is up and running.
Here are some examples of things you can give up to save money.
- The Coffee Run: You can spend up to $ 5 a day or more in coffee. Stop. Make coffee at home or coffee for a month, and you’ll have $ 150 more in your pocket. It may not seem like much, but everything is cumulative.
- Eating Out: Every time you eat instead of eating at home, it will cost between $ 30 and $ 100. Give it for a month, you save $ 120 to $ 400. In a few months, you have exceeded $ 1,000.
- Unused Memberships: Do you have club subscriptions or other monthly expenses that you do not use? Give them and save hundreds.
Even in this period of salvation, do not forget to take care of yourself and to please yourself. Simply save money for your business by launching your highest priority.
2. Gathering Money
As mentioned above, the number one you will need when you start your business is money. So, one of your first steps is to put your money together and put it in a business account or savings account. Part of the reason is that lenders will look at how long the money has been in your account before you lend money, to make sure you do not have it. not borrowed to strengthen your balance.
This means that any savings or personal funds that you use to obtain money must be grouped together in one place, preferably under the name of your business. All the money you save by following the above steps and giving up things should be added to this account regularly to prove that you save yourself and isolate the funds so you are not tempted to use them for something else.
3. Part-time work
Sometimes your business income is not enough to pay all your bills and provide the income your family needs. For an extra influx of money, work part time. However, pay attention to the work you choose to work and make sure that it does not interfere with your business hours.
This means that you may have to work at night or on weekends. One of the best options is to drive for Uber or Lyft, or both, as this can be a good investment and gives you a little time between rides to work on other tasks. Other jobs that bring in cash are delivery, food service, home phone or chat support for various businesses that offer 24-hour customer service, and more. Be creative.
A word of warning. If you arrive at a point where it is more profitable to lose your part-time job and focus on your business full time, get rid of it. You want to add money to your business, do not remove it. It’s a delicate balance, but follow your instincts and you’ll come out very well.
4. Sell What You Do not Need
Yet another way to raise money: sell what you do not need. Do you have summer toys, a boat or a motorcycle that you can live without? Sell them for money. You can always buy new ones when your business takes off and you have more time to spend.
Do this with caution. Do not waste money on these items or sell them for too little. You are not hopeless, so stand for a reasonable price. Your assets, like your time, are valuable, and as mentioned above, you still need personal care. If motorcycling is your hobby that helps you to decompress, do not give up. Make sure what you are selling are things you do not need.
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5. Borrow judiciously
No matter how much you save and save, you may need to borrow money to start. Do not do it so stupidly. There are several options and weigh in equal amounts:
- Guaranteed Loans: You can get a small secured commercial loan using the assets you have to secure it. If you do not have commercial property, you can use personal property like your home or other personal property. Be careful here though. Do not borrow more than you can afford to pay back.
- Unsecured Commercial Loans: Interest rates will be higher on these loans, but they are also a good way for your business to build credit.
- SBA Loans: For long-term financing needs, the small business administration also offers low interest rate loans, but you will have lower payments and longer to repay.
- Personal Loans: You can also take out a personal loan if you need it. Your bank or savings and credit cooperative will offer them, but they will often be of a smaller amount and shorter term than other loans.
Just be sure to borrow responsibly and never take out a loan that you can not repay.
6. Save money on purchases
One way to save money so you do not need investors is to buy used equipment instead of new ones, and to negotiate prices for what you have to pay for the full price. For example, if you are starting a mobile food business, you can find used trucks for sale, and modify them to suit your needs. Since these are often not driven far, the part of the vehicle is usually in good shape, and you can find good equipment used to set up the cooking zone. Similarly, you may decide that looking for food trailers is a better decision after you realize that your truck has a trailer hitch.
By buying them, you’ll save money, and you’ll be able to join clubs and use credit card points to save new items if needed. Find sales and negotiate group discounts where you can. The more you save on your purchases, the less capital you will need to start. Even if you do not start with the equipment of your dreams, your business will have more capital to support itself.
7. Weigh Needs Against Vows
Finally, weigh what your business needs against what you want. Are there things you can do without for a moment? Can some items wait until you can afford them? If so, be patient. Take care of what you need first, and then you want when you can afford it.
You can start your business for yourself without investors. But you will need to be wise in your decisions and make sure to raise money and borrow wisely. It may take a bit of sacrifice, but with perseverance and hard work, your efforts are bound to pay.
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