Updated: Aug 23, 2021
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If you’ve experienced financial challenges in the past, spending money on almost anything can feel nerve-racking. This is even more true if you have been considering opening your own business. To help you responsibly move from a place of inaction to becoming a business owner, follow these expert strategies from Dionne Nicholls.
Create a financial plan for your new business.
The best way to put your mind at ease when starting a new business is to create a solid financial plan. When you see the numbers on paper, you can start your business using facts and mathematics. Simply guessing and hoping for the best is not only a recipe for intense anxiety and sleepless nights, but it could also lead you to actual financial hardship.
Whether by yourself or working with a team of experienced professionals, calculate all of your expenses, revenue, and the like. Having a solid financial plan for your new entrepreneurial endeavor will give you the freedom to know exactly how much you can spend and what you need to earn to meet/exceed your monthly expenses. When you address your business financials honestly and directly, you can remove almost all fear of financial difficulty.
Hone in on your business skills.
If the initial business planning process alerts you to some gaps in your business know-how, it might be worth it to take some online classes that can help you build your skills. Taking an online MBA program would allow you to do your coursework at your own pace and during your free time, so it’s a great option for budding entrepreneurs who want to strengthen their leadership skills and business acumen. Some schools even allow you to earn your degree within 12 months.
Similarly, you could take classes without earning a formal degree. In addition to looking for courses in accounting, bookkeeping, or whichever topic interests you at your local community college, look for workshops and presentations from local business leaders. You can find these by visiting your chamber of commerce’s website or checking out a networking group in your area. The best news is that many of these classes cost very little to attend, and some are even free.
Create multiple streams of income.
After getting a thorough understanding of your financial picture, begin generating multiple streams of income. Upon starting a business, it is rare to start making exactly what you want or need right away. For this reason, you should never solely rely on your business for your income.
To prevent unnecessary stress, create multiple income streams. Whether that means taking on some gig work, having an investment property, writing a book, or taking on a part-time job, ensure that you always have cash flow coming into your bank account.
Skip the physical office or brick-and-mortar shop. Slab points out that as an employee, you save $4,000 annually by working from home; for employers, that goes up to as much as $11,000 for every part-time remote employee. That’s just for sending people home instead of having them come to you.
Rather than spending thousands on a business location, opt to work 100% remotely. This move will not only save you money, but it will save you time and effort. Having a physical location of any kind involves maintenance and a commute time. When you work exclusively from your computer, you can maximize your time and profits.
With a remote business, you’ll lean heavily on tech tools. For instance, a well-chosen payroll app allows you to create accurate records, get auto reminders, and even run reports on the fly. By researching the technology available to you, you can find smart solutions for staying on top of finances.
Start outsourcing from the very beginning.
Although it is important to keep your startup costs low, you should be smart about how you use your time. After all, the phrase “time is money” isn’t wrong. In fact, some tasks are far more cost effective to outsource. Consider hiring a remote/freelance data entry professional, virtual assistant, or bookkeeper. Not sure how to find the right professionals for your business? Search online job boards so that you can explore reviews, costs, and more before hiring.
These days, a professional website is a business essential. When potential clients are searching for someone to do business with, chances are good they will look online first, and if they don’t find you they will find your competition. What’s more, if they find your website and it’s poor quality, they will move on and won’t look back. Ensure those searches turn into sales with a well-designed, professional website that’s user-friendly.
Know which purchases are worth it and which ones are not.
Finally, be intentional about discerning what purchases are worth it for your business and which ones are not. There are so many software programs, memberships, and tech devices that claim to be essential for every company. The truth of the matter is that only you can decide what is essential for your business. Rather than getting carried away with purchasing things you’ll ultimately never use, be critical of every purchase that you make.
Launching a thriving business after experiencing financial setbacks is a fully achievable goal. When you follow the steps listed above, you’ll set yourself (and your company) up for success.
Are you a woman looking to live her best personal, professional, and spiritual life? Connect with me, Dionne Nicholls, to learn about my life & leadership coaching services that will put you on the path to success!