It’s a bold move to set up a new business. Like most new entrepreneurs, you have very little funding and you don’t have an income to replenish this funding. It’s a race against time to balance the books before you go bust. The best thing you can do is to start budgeting immediately.
It’s simple to budget a start-up business. Here are some of the options available for budgeting.
Before you do anything, get into the right frame of mind. You have to manage your money closely. It’s about saving to make sure you’re still chugging along a year from now. Making savings just eases your financial situation. It can’t cater for poor business budgeting.
You have to save every cent. Keep an accurate record of your incoming and outgoing expenses. Set up a spreadsheet in a program like Microsoft Excel and log every business expense you make. Include everything from paid company lunches to a new set of pencils. At least you can easily tell where you’re going wrong and where you can make cuts.
You need stationary, office furniture, and technology when you initially start a business. Assuming you’re starting completely from scratch, consider buying everything second-hand. It doesn’t matter if it doesn’t look as good as that $300 power chair. Think practicality not the prestige factor.
Try to buy second-hand items from friends and family. You can also look at sites like Craig’s List to see if anyone has something you need in your local area.
Try to cover your expenses by not paying any money for them. Bartering can utilize what you have lots of instead of what you have little of. If you’re good DIY’er, consider trading your skills at the weekend for a free desk. Alternatively, offer to babysit for a close friend in exchange for them helping you clear your garage to make into an office area.
You shouldn’t rely on money as the only way to get what you want. You can save hundreds of dollars on overpriced services through barter.
Avid savers know all about promotional codes and how to use them. Use promo codes to buy whatever you need. They can take up to 50 per cent off a product. Buy them in bulk and it all goes towards saving money for your business.
Find promotional codes on websites dedicated to them. Subscribe to the alerts system or newsletter to get regular updates about the latest codes relevant to you. Many apply to the bigger retailers too, so you don’t have to necessarily settle for the ‘own’ brand trash from a little known retailer.
Insurance providers and other retailers selling package deals want to encourage people to buy during the low periods. To increase sales, they decrease their prices and offer lots of introductory deals which you would never have access to any time of year. Admittedly, it depends on when you start your business, but there’s no reason why you can’t put off buying certain things for now.