Wonderful Wednesday-Financial Considerations When Starting Your Business


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“Stay on top of your finances. Don’t leave that up to others. ” ~Leif Garrett

I’m a member of this group on social media, it’s one of those groups where people exchange or sell unwanted items. I used to be a member of a similar group back home and often found tons of stuff at bargain prices. But the drawback to this, there so often find yourself buying stuff you really don’t need; then weeks or even months later having to sell of that same stuff. Last week there were some gorgeous pieces of jewellery up for sale and I’m always a little weary of buying jewellery from anyone other than a licenced jeweller. But the pieces really sparked my interest and I was familiar with the brand so would’ve been able to spot a fake piece if I saw one.

 

I finally contacted the seller, now the first question I usually ask when purchasing anything outside of a store is. “Why are you selling it?” I know it’s often to make money but always ask anyway. So I shot the lady a message and she came back to me saying that she was selling off everything she didn’t need and most of the jewellery were from old boyfriends and the other stuff she was selling were unwanted from friends or relatives gifts. In addition to that, she also needed the money because she wanted to start her business. Long story short, after spending so many years in the corporate world, she had finished a degree in accounting so was now moving onto becoming a freelance book-keeper, not only did she need the space of her garage where most of this stuff was piling up, also needed the money to purchase office furniture and supplies to get herself started.

 

That was a moment of enlightenment. Yes, I know there are a lot of people, especially here who are moving onto home base businesses and even virtual offices to cut the cost of renting a space. What sent the light bulb off in my head was the fact that so many people make grandiose plans or have visions of what they want to do without realising or thinking about the cost of fulfilment. It does take knowledge and creativity to follow your path but following your path can have all kind of hidden cost. Like the cost of training or studies in the field your interested in if it’s something other than your career path, the cost of marketing/advertising your business, cost of supplies, legal fees if you’re serious about branding your idea. I’m not trying to scare you away from pursuing your endeavour, just put out there the financial aspects you may not be thinking about.

 

There are many ways you can finance your endeavour: 

  • Sell! Sell! Sell!: Spend some sorting through stuff you have at home that can be sold or eBay or garage sale. Before relocating I had a yard sale every weekend, it took me months to get rid of items that weren’t passed on to family and friends or that had not passed the relocation test of size, weight and significance.

 

  • Be home based: If you’re starting a business instead of looking outside the home for space, if your catchment area is zoned for it, consider working from home until your business is profitable enough to move into a rental space. There are, however, lots of benefits and drawback to this, you may wish to make a list of pros and cons.

 

  • Part-time work: If your schedule allows, consider doing part-time work to earn extra cash.

 

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  • Partnership: If all else fails or sometimes this can even be your first option. Look for a partner, someone who is willing and able to help fund your project or business. Make sure the agreement of the partnership is in writing with clear statements of what the partnership entails.

 

~Happy Wednesday

©Etta D. Richards

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