Starting a business is not a walk in the park. It entails different factors to work hand-in-hand in order for it to be successful. If you ask accomplished entrepreneurs, they will tell you that both putting up and running a business involves two things, hard work and working smart.
You may also know these things already, especially if you find yourself as an aspirant entrepreneur. But among these factors, everyone will agree, capital is one of the major factor in starting a business. So you might be thinking, regardless of the scale of the business that you want to open, do I have enough money for it?
Well, here are some areas to think about as we answer that question.
1. Conduct a personal financial analysis check.
Truth is, many of us are not aware of our financial status. Meaning, we don’t have a macro view of our well-being financially. Therefore, before diving into any business venture, we have to be thorough about this. A simple personal financial analysis check would help you see if you have the enough cash flow prowess to start a business or if you need to settle some liabilities first. There are couple of free online resources that can help you with that. But the principle here is clear, a good management of business starts with the self.
2. Save up.
When we talk about saving up, it does not mean your emergency fund. It should be different from your intended capital because it will be your fallout measure should anything goes wayward. The rule of the thumb here is that saving up should be intentional. Same goes with the other stuff, if you want something that entails some cost, save up intentionally. Which means, if you are really into that business, save the best way you can.
3. Spend according to priority
You may have fixed payables but make sure that you are spending only with what you both need and is important. This would mean cutting on unnecessary expenses or things you can live without. Remember, starting a business is a big step to make therefore make necessary adjustments if possible.
5. Liquidate dormant items or properties.
People get to accumulate things along the way, but if it has become dormant and is not acquiring any value, you may consider liquidating it by either selling it or monetizing it. Old unused stuff should go and undeveloped properties can either be sold or rented out. Before considering a loan, look for hidden treasures that you may already have.
6. Review and consider loan offers.
If you have done a comprehensive work with your business plan, maybe it’s about time to consider some loans. Some people might be allergic to the idea of loan, but a businessman knows how a loan can be a friend or an enemy. Visit local banks and solicit loan proposal and easy payment scheme. Remember, the key to loan is that the lower the interest is, the better.
Since putting up a business is a big step, make sure that you are well-prepared. As they say, a a business man always acts on calculated risk. So make necessary preparations and give your best shot!