If you read the stories of successful businessmen you will find many characteristics that they had in common making them reach the heights that they have attained. They saved every penny that they could and, they faced hardships for it that very few humans can endure. They did not just learn it but mastered the art of saving money. This is how important saving money is to those who aspire to make it big in the world of business and this is what we will be covering in this article.
Live a Miser’s Life
Ditch the Costa coffee for a while and the Friday evening alcohol with friends’ inexpensive bars. Such simple life changes can help you save every month and make a huge difference to your savings.
Cook food at home even if you’re a horrible chef and take your leftovers for lunch the next day. Ordering food from restaurants is as injurious to your wallet as it to your health.
Take up a part-time Job
Before your business begins to generate enough revenue so that you can sustain your monthly expenses, it may be a good idea to get a part-time job. A part-time job will ensure that your necessities are taken care of and your dream is not compromised.
Expenses such as rent, food, electricity bills, and vehicle fuel should be not be put at risk as the accumulation of these can prove to be really stressful in the long run. For this reason, it is advisable to first begin your business as a part-time venture and keep your insignificant job till the time your business has enough customers so that your financial obligations are met.
Listen to mentors
There are professionals who make good money out of advising a business on how to go about things. Such professionals are known as consultants, and they charge a lot for dispensing such advice. In the initial days of a business, you may be low on funds, and spending money on consultants at this stage is nothing short of foolishness.
Instead of paying people who advise you for their personal gains, you should turn to those who inspired you to choose this path in life. Mentors are the people who have tackled similar challenges in life, and they are the best people to turn to for advice. They know more about you than a consultant and are in a better position to show you the path. Taking their advice is likely to benefit you professionally and financially.
When you are new in the world of business you may not have the resources to avail services of a professional. But there’s a new trend on the rise, instead of paying these professionals money, you could offer them a service in return, and this way you can save a lot of money and strike important relationships as well.
It’s almost like an ancient form of commerce has come to the rescue of those who are low on funds. It has evolved into a sound strategy for trading services, finding goods, moving inventory, and conserving cash. There are several organizations on the internet that help companies find such opportunities.
These days many individuals prefer to take equity in return for the services that they provide. It is natural for start-up founders to be a bit wary of giving out equity in this manner but this is actually a better strategy than paying them a salary.
A person who works for the prosperity of a business because his growth depends on it is twice as likely to work harder for the company. Similarly hiring people on a commission basis is also a good idea to increase productivity.
Business is all about developing the right kind of relationships. Networking is one of the most important elements in building a strong foundation for any company. Without networking, it is hard for any business to flourish. We are not just talking about the relationship that you build with your customers but also the one that you build with those who supply you materials and help you in developing products.
If you strike a good rapport with suppliers you are going to enjoy many benefits such as on-time delivery, extended payment terms, and provision of high-quality materials. They can also make your credit limit flexible and this can help you to save cash reserve when you need it the most.
Building Partnerships with Customers
Before you launch your product it is a good idea to test it for its effectiveness by giving a sneak preview of it to a select few customers. They can provide you with some valuable feedback about the product and bring to your notice the strengths and weaknesses of it.
By offering them lucrative deals you can ask them for their long term commitment. You can offer them special packaging and strong after-sales support. If you are able to strike the right chord with your customers then you may get them to pay early, possibly even before you deliver the product to them.
Borrow from family and friends or reputable source
If you’re not able to save sufficient money to kick start your business then you should consider borrowing some money from your trusted ones, whether it is your family or friends. As this article explains getting a loan from a company specializing in helping new businesses is a good idea, as they fully understand your predicament.
Old is gold
There are certain luxuries that you cannot afford at the moment and you should accept it humbly. So whenever you think of buying a new car or furniture, remind yourself that there will be plenty of them in the near future.
At this stage, you may have to put off the thought of buying new things and embrace the old and used. This simple trick can help you save more money than you can imagine.
Merely following this piece of advice may not yield the same results but having a saved reserve of cash can help you to tackle certain difficult situations that are often encountered in the business world.
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About the Author (guest post):
Anna Barton is a problem solver. Coffee trailblazer. A passionate creator and a finance aficionado.