Starting a business takes a lot of planning and consideration – it’s really not as simple as waking up in the morning one day, and deciding that you are going to start a business!
For most, money is a deterrent to their dream of owning their own business.
“Should I borrow from my savings to start a business?” Definitely.
Investing some of your own money in the business gives you a sense of ownership, and motivation to work harder and keep going at it.
However, if that sum of money from your savings isn’t half getting you anywhere, you might want to consider the following options.
1. Start off part-time
Starting a business doesn’t necessarily mean that you have to quit your job immediately and focus completely on your business. Having a job will ensure that you’ll still have a steady stream of income, all whilst building up the foundations of your business. This will keep the pressure off you for the first few months, or even years.
Furthermore, your health insurance, vacation and sick days will all be covered by your company, which will no longer be the case if you decide to quit your job entirely. Alternatively, you can focus on your business full-time, yet have a part-time job on the side to bring in the extra income.
2. Reinvest your profits back into your business
Instead of taking out the money you made from the first sale at your start-up to celebrate, leave it in there as capital, which will help the company to grow. Whether you invest in new technology, products, marketing, or employees, your goal is to grow your business by attracting new and more customers.
This may seem like a tough decision at the time, but remember that having a side business is not the long-term plan. You want your business to grow into something that will flourish and bring you gains to live the life you love.
3. Keep your overheads low
Especially if you decide to make the decision of doing a business on the side, it should not require you to dig deep into your coffers to get the operations going.
If you can work from home, do it.
Make use of government grants to subsidise any costs that you might run into whilst setting up your business. Ask people who have “been there, done that”, for advise on getting these grants. Going back to the point on reinvesting your profits back into your business, if you can keep these overheads low, then more profits will go back into helping you grow your business organically.
Don’t take the profits out to celebrate! Keep it in the business and keep rolling it over. Alas, you can consider starting off part-time for your online business, instead of being a sitting duck. Opportunities never knock on your door twice.