Many people have the goal of starting a small business because they think it’s more flexible.
Alexandria Blaelock, author of Ms Blaelock’s Book of Holistic Personal Finance says “Starting a small business can be flexible, but it’s generally the kind of flexible where you’re working at 3 am, not the kind where you’re going out for morning coffee.”
Here are Blaelock’s tips for starting a small business:
- Have something to sell: A business is not a business if it’s not making money. To make money, you need either a product or service to sell. Product businesses are expensive to start up but scalable. Services are cheap to start up but limited by your available time.
- Research, research, research: The majority of businesses fail in their first year. Before you commit any money to it, make sure you have a reasonable idea about whether there’s a long-term future in it.
- Choose on or off-line: Shop fronts are expensive to set up but suggest stability and draw in passing traffic. On-line are easy to set up and open all hours, but you’re competing with everyone on the planet. Combining the two offers the best of both worlds.
- Transition from employment: Given most businesses fail in their first year, try starting it as a side project, gradually increasing the hours you devote to it. In the meantime, cut your living expenses and save up a nest egg to keep you going when you quit your job.
- Avoid borrowing money: Where possible, avoid borrowing money because your lender has the power to shut your business down (and worse)
. Contact your local Small Business Department to see if you’re eligible for grants, tax incentives or low cost loans.
Alexandria’s tips for starting a small business will help you avoid start-up money stress and get your small business off to a good start.
Click here to find out more about Ms Blaelock’s Book of Holistic Personal Finance, or visit Alexandria’s website.
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