Ready to venture into your first business investment? You better start saving up to fuel your startup.
Unfortunately for some people, that’s easier said than done. One of the biggest stumbling blocks for any aspiring entrepreneur is having enough financial resources to start the business and keep it running for its first few months of operation.
This guide aims to help you save money in order to jumpstart your entrepreneur goals.
Hold Your Horses!
Before you get all too excited in saving money, you should know how much you need. One of the first considerations that you must look into when putting up a new business is the cost breakdown.
This involves listing down the expenses that you may potentially incur in order to start the business:
- Initial costs, for instance, may include purchase of equipment and down payment for leasing of store location.
- Running costs are expected in any business, such as ingredients, packaging products, office supplies, insurance requirements, and staff compensation.
When saving for a business, make sure that you think about unplanned expenses. That’s why it’s important to save more than what you are expected to spend.
Effective Money Saving Tips To Keep Your First Business Investment Afloat
When starting any kind of business venture – whether it’s a cookie dough franchise or your own brand – it’s important to think about the business budget. The hard truth is that you won’t be able to start your first business investment without money, no matter how awesome your ideas are.
Check out these saving tips to fast-track your business startup:
1. Save a portion of your current income.
You don’t have to look far and wide for investors to your business. Your income is the best source of financial resource, and so you should start with that. Review your income and assess how much you can set aside as savings for your business plans.
There’s the catch, though: Your income effectively limits your spending capacity for your startup. If you have a limited salary, starting your own business may take a little while longer. You may speed this up by adding income streams (such as looking for side jobs) or asking for a raise.
2. Treat savings as bills
One nifty strategy to make sure that your money goes to savings is to treat it as though they’re bills that need to be paid. In other words, as soon as you receive income, “pay” for your savings first before making any other purchase or expenditure.
Most people do it the other way around – use their money to pay everything else, and then check their accounts to see if there’s any remaining cash for savings. This is never a good plan, because you’ll probably end up already broke before your next salary.
You may ask your employer or the bank if they have financial programs that automatically set aside a predetermined amount from your account as savings. This concept of forced savings works for people who don’t have enough self-control to save a portion of their salary.
3. Bring luxury expenses to a minimum.
Do you really need to watch streaming content in full HD quality, or would a standard quality picture with lower subscription rates already work for you? While you may find it difficult to totally get rid of luxury services because you’ve already gotten used to them, you can always cut down to a lower expenditure level.
Other unnecessary expenses may include eating out at expensive restaurants, buying coffee from a high-end café, and buying another rare toy for your collection.
If you’re serious in your first business investment, it’s easy to decide on this particular technique.
4. Try to adjust spending on necessities.
Tip number 3 may sound easy, but this next bit may really challenge your budgeting skills. Evaluate your current list of non-negotiable purchases and payments to see if you can further reduce the spending on these things.
Here are some suggestions on how to cut down on basic expenses:
- Look for local grocery stores that offer goods at lower prices.
- Reduce power usage at home in order to bring down electricity costs on your next bill.
- Consider moving to another home with lower rent or cheaper upkeep.
5. Look for freebies and deals.
Never underestimate the skill of scouring for promos and discounts! This technique may not look like much, but this can potentially earn you some serious savings. Imagine not having to spend (as much – or at all!) on some of your necessities. Check out some of these tips:
- Some stores offer discounts on bulk orders, which may work well in terms of things that you use a lot of.
- Don’t hesitate to ask the staff working in the store – and yes, I mean each store that you visit – for discounts. Some of these promos may be available but are not advertised much.
6. Organize a garage sale.
If you look at your storage room or closet, you may be able to find some things that you don’t need or haven’t used for a long time. Why not sell them for a small profit? You can use the proceeds from your garage sale as additional fund for your future business.
Final Note: Franchising is cost-effective for your first business
Having a limited financial capacity may stave off plans to start your own business from the ground up, but not if you can start one at lower expenditure. This is possible by getting a cheap ice cream franchise, cookie dough franchise, or any similar business venture. With less trial and error and a tried-and-tested business model, a franchising opportunity is your best and fastest ticket towards your entrepreneurship plans.
We at DoDo offer one of the lowest ice cream franchise price points. That way, you can have your new business up and running in no time. If you want to know how to start a cookie business, take the first step by going to our Inquiry page and filling out the form. We will get back to you with information on how to run your own DoDo store.