By Terez Howard
You probably guessed that was the reason when you read the title. If you’re just getting started out as a small business owner, you must strongly consider this important issue. Because the amount of money needed to start a business varies from business to business, I’m going to share some general but important tips I’ve encountered.
Count the cost. Before you make your dream of owning a business a reality, you must sit down and figure out every cent you will need to get it started. You don’t start out with a profit. If you’re looking to spend as little as possible, I suggest starting an Internet business, selling services, e-books or affiliate products. A virtual business can cost less than a brick-and-mortar store if you do your homework. No matter what type of business you choose, realize it will take time and sweat to build.
How much have you saved? If you don’t have a penny in your savings account, you are not ready to start a business. I’ve read that, depending on your business, a new business owner should save enough money to sustain a family for 18 to 24 months. You might need money for a longer amount of time or shorter. After you count the cost, you should have a clear idea of how much money should be in your bank account.
Budget. Once your business gets off the ground, you will have regular expenses associated with it, which will need to be paid out of pocket until your business becomes sustainable. Much like counting the cost initially, create a budget that includes all of your weekly, monthly and yearly expenses. Be specific. Include printer ink, copier paper, gas. Try to think of every expense related to your business, so you can determine if you can afford employees or products unique to your business. Don’t get involved with a marketing company if you can’t afford the payment.
Be realistic. Numbers do not lie. When you count the cost, save your money and budget, don’t project amounts based on “if.” For instance, if I do more freelance writing gigs, I will save enough money to keep afloat six months and I can start my business tomorrow. Take the numbers seriously because if you don’t, you will fail.
Terez Howard operates TheWriteBloggers, a professional blogging service which builds clients’ authority status and net visibility.