Are you looking for effective ways to save money so you can start a business right away?
The good news! You can start today with no capital. If you are a late bloomer and eager to start a business, chances are your mindset is all about saving money because of the overhead costs, labor costs, and you rent a building as your physical store. For the millennials, staying at home can generate income with the use of computers.
Either you are a late bloomer or millennial, and whatever types of trading you are in today, you still need cash.
Where to get your cash? It is in your revolving fund, or you get a loan to buy the computer for your online store.
Many business ideas you can start this 2021.
The new era is in the digital business either sell online products or marketing strategy while having a physical store. Whatever you want to choose, the business skills and principles apply to all.
If you are excited to start a business today, study first by reading my content below.
Before we go to the monetary value, look at yourself first.
Do you have the right skill and traits of an entrepreneur before starting a business?
Skills and the traits of an entrepreneur are some of the effective ways to save money.
And it could save you time, too!
Take an example. You wanted to start an online store by posting on your Facebook and save money because renting is quite expensive.
Before you say yes, ask yourself.
Are you willing to consistently post on your social media platform for 3x a day?
Are you willing to find 50 customers a day to reach your target profit for a month?
Did you know, some expenses you will pay like the Wi-Fi, transportation cost, and your electricity bill.
If you have passion but do not have the right skill, you can improve it. Take the example of someone who loves to write, but need to improve their writing and communication skills. Too costly to attend training, but in the long run, you will appreciate it. It could save you money and your precious time.
Do you have the confidence to showcase your brand?
Another effective ways to save money is to improve your confidence.
Online shop is simple to manage but to give you an edge to stand out among the rest is you need personal branding.
To minimize cost, you have knowledge by gathering ideas and create a techniques that could save money.
Have an entrepreneurial mindset
An entrepreneurial spirit is one of the effective ways to save money before starting a business.
If you observe, it is like a gamble because you can gain profit today and lose tomorrow.
Have you been attending networking and the coaches help you change your mind into business-minded? If you have, it is easy to sell products. So set your mind to become an entrepreneur, and surely you will save money without a doubt.
Know your products/services
Yes, know your products to sell. Know your services to serve the right customers. This is an effective ways to save money because you study through research, and gathering ideas by an interview with the expert.
You are a fashion woman. You always wear very affordably trending clothes. Every time you post, your followers always make comments about your trending clothes.
With this, you plan why not start clothing online business? Then you sell with no capital. At first, it is good, and you are ordering clothes for your stock. Then your sales are downsizing and become lose interest in selling and eventually closed your online shop.
Though you love fashion, you still have to know your products.
Then you realize your mistakes, and so you change them by studying them, developing business skills, and change into an entrepreneurial mindset. Then what next? You save a lot more than before.
It has also happened to me. I have a lot of business mistakes that ended up losing cash. Then I realized that no matter how much I save, the problem is the right skill for my business and a positive mindset to achieve it.
A room for your mistakes
Trial and error consume your money and worst, wasting your time. If you expect your mistakes, then this is one of the effective ways to save money.
So despite your trial and error, how you will know what will happen, and you have an exit strategy.
It does not mean you should be perfect. That is why you have enough space for trial and error.
Even the multinational company does. Once they hit the target in the first phase, they make sure that it will be the big hit.
Patience is the best answer to surpass the challenges of your small business.
Now let’s look for the monetary value. This money technique will help you before starting a business.
Effective ways to save money before starting a business
- Build an Emergency Fund for your personal
- Build Emergency Fund for your business
- Use Debt Wisely
- Be a homebody and Start Do-It-Yourself
- Track your Cash Flow
Build an Emergency Fund for your personal.
Building your emergency fund first is one of the effective ways to save money before starting a business.
You save emergencies for personal reasons such as illness, hospitalization to yourself, and family. Other mild emergencies that you need extra cash to pay.
If you have fund right now, you worry less about your future and avoid getting cash from your business account.
Emergency funds compose your cash and protection like insurance and Health Maintenance Organization (HMO).
How much money do you save for your emergency fund?
As a general rule, at least six months of your gross salary.
Study now the strategy to increase your cash inflow before starting your business.
Build Emergency Fund for your business
Not only do you build for your personal, but also you have the emergency fund for your business. It is one of the effective ways to save money.
Like in personal funds, the businesses will experience unexpected circumstances such as low sales and natural calamities (fire).
Instead of getting your cash from your fund, you have a separate emergency fund for your business. It will avoid failure.
Buy property insurance for your building, and employee insurance as benefits will help you save money.
Suppose you start a call center agency and you own a small building. You have ten employees, including your two admin staff.
You get insurance for them and save emergency funds for employees alone because you analyze it will cost you less.
What if your building is the victim of a fire? If you have insurance of P5 million and your building cost of P3 million, you have money left to start again.
What if you do not have any insurance and your fund is P500,000? You see a big difference, so it is best to purchase the insurance and save cash. That is one of the effective ways to save money. It makes you less worried about unexpected disasters.
Use the debt wisely.
Cash is king in business. We need money to buy needs.
Debt-free is one of the effective ways to save money. But how you do it?
Borrow money is a good debt if you have a stable job because you are confident to pay on time.
To pay your budget on time, prepare your budget plan, including how much you want to pay.
For personal, pay an additional at least 10% of your bonus. It will reduce your charges and pay before your due date.
Do not buy in credit for luxury purposes.
If you loan big money for personal purposes, make at least 20% of your salary to avoid charges and failure to pay.
You should borrow money for business purposes, have enough cash or equals to your loan.
Be a homebody and Start Do-It-Yourself
If you have unused stuff, instead of putting it in a garbage bag, why not recycle it? Showing off your creativity in your DIY (Do It Yourself) are effective ways to save money.
Cook at home instead of going out at restaurants; plant fruits and vegetables in your mini backyard save your money.
Many DIY projects you can watch on Youtube and Facebook. You can follow them if they have a fan page to keep you updated.
This is my tomato, eggplant, and chili plants, which became my new hobby this year. It is not only my new passion, it helps us here in the house to save money on food because we have vegetables in our backyard.
Track your Cash Flow
Monitoring your cash flow will track what items you will reduce the cost to achieve your desired money goal. When you monitor it well, you can be sure to yourself the effective ways to save money.
Learn to study and analyze your cash forecast and start preparing your cash flow statement.