How to Save Money Starting a Business from Scratch (Guest Post)
If you are planning to start your own business, bootstrapping might be your number one option if you want to raise enough cash to keep your business going during the first few months of operation. This is something that you have to really be disciplined about because you only have your source of income as the sole lifeline of your business. In short, even if you already have your own business, keep on hanging on to your day job until your business is really big and profitable enough that you can support yourself and your family already. But it's not enough to have the cash. After all, it's not going to last that long. You need to do your best to maximize your money to make it last longer. How do you spend and save your cash wisely while bootstrapping? Read on and find out.
1. Be frugal
Spend only on things that you need the most. Quit choosing the branded and the brand-new. Buy generic or secondhand items, instead. Try hitting garage sales or flea market or explore bargain sites, like eBay, Amazon or Craigslist. You can be classy yet money-wise at the same time. It's just a matter of flexing your creativity together with your wallet at the same time!
2. Prepare your budget—and stick to it
Being frugal isn't complete unless you've got your budget on which you stick to through thick and thin. List down your anticipated monthly expenses, your income and your business' projected revenue. Keeping an eye on where your money goes is a very big help in keeping your expenses on the right track and your finances away from trouble.
3. Arrange ways on how to "borrow" money from other people
Actually, you don't literally have to borrow cash. Make a deal with your supplier so you can get the advantage of paying for items you purchase in 30, 60 or 90 days. Then, ask your customers to pay upfront. For bulk orders, you can ask for a down payment, with products or services payable in 15 days or so.
Tell yourself that income from your work is your personal income, while the business' revenue is the business'. If you think your business is just breaking even, then, don't take out money from it. If you have excess cash from your salary, invest it on your business to boost the capital. Keep the money rolling and growing, even if it means you have sacrifice your daily cup of latte or that weekly trip to the resto. You'll be surprised to find out that your business has already grown that self-sustaining or even profitable!
5. Do it yourself
If you can only do the work, why hire people? Money spent on paying for your staff could be spend wisely on procuring equipment, innovating your services or expanding your product line. Rather than hire, you can also inspire people to work for you for free! Tell them working for you will be a great experience-builder and skills-enhancing. Interns and on-the-job trainees are excellent people to work for you for free.
It’s not that easy to start any business from scratch. But with your creative thinking, hard work and dedication to succeed, you’ll definitely make it big.
For more tips on saving money and adding income to your budget, check out How To Make Fast Cash: Fun and Legal Ways To Earn More Money In A Weekend.
Author’s Bio: Manilyn Moreno is a freelance writer for a catering software company and an entrepreneur. She manages a small catering business specializing on weddings and corporate gatherings.