Business on a Shoestring
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Business on a Shoestring

Most people donÂ’t think about using their income as a source of funding for business. There are many business owners that have learned to run their businesses without a small business loan or even a personal loan.

How many excuses have you gotten from banks as to why they can’t give you a loan? I know; it’s frustrating. In fact it’s downright depressing. Imagine you’ve got a business to run or

start

and nobody wants to lend you money. Guess nobody sees your vision the way you do? Hey wait! You do! Why can’t you finance your own business? There are many business owners that have learned to run their businesses without a small business loan, or even a personal loan. They call it a shoestring budget. This is where you use your paycheck to pay for the necessaries.

You’re in business now! Almost anyway, the only thing stopping you, or rather trying to stop you is funding your business. Although many banks and many agencies offer SBA loans they are sometimes hard to get. In fact, to qualify for most SBA loans you have to already have money set aside for business. But you’re not gonna let that stop you! No sir – Or mam. You have a job! We’ll maybe you’re collecting unemployment but that’s good enough to use.

Most people don’t think about using their income as a source of funding for business. While small business loans offer a faster way to purchase what you need immediately, shoe stringing your business from your paycheck should be a viable backup plan. Think about it this way; you can purchase what you need slowly with your own money or you can wait on the banks to change their minds. Somehow I don’t see banks throwing money out. So how does one operate on a shoestring budget?

First, figure out how much disposable income you have. That’s just fancy-talk for how much money you have left after paying all your bills. Usually some people end up investing extra money or putting it in a bank account. There’s that word “BANK” again. But what’s a better investment than something that will potentially generate more income for you? You can put the funds into a bank account so it accumulates some small figure. But if you’re unable to get a small business loan then maybe it’s time you took a loan from yourself. For one thing it’s money you don’t have to pay back if things don’t work out. Best thing is, it can still purchase products you need to run your business. Thus the term shoestring budget! Your small disposable income not a huge loan from a bank!

The idea is that a shoestring is very small, really small in some cases. I would suggest you use your critical thinking and creativity to figure out what you need and find cheap ways to get them. It’s always a good idea to know what you will need and how much it’ll cost in order to plan carefully. You can price out the items you need and see which you’re able to afford. Setting up purchasing schedules based on [rice and available funds is a great way to make sure that you set a goal to acquire items and not just stay in the “thinking about it” phase.

Now that you know your budget and the products you need to run your business it’s time to figure out if a shoestring budget is for you. Paradox! I’m telling you about a shoestring budget and asking if it’s for you. But you really should. What you need to remember is a business, like anything else you’ll do comes with risks. The risk is you could end up with nothing. My suggestion is that before you start spending take time to properly plan your business. You should know what you’re going to do, who your competition is, what you’re offering as a product or service, a marketing plan, and most important who your potential customers are going to be. Do you really need to know all that? No, but it’s a real good idea. In knowing these things you can also develop contingency plans. Also take time to know your niche.

I hope you’re fired up! By now you should be ready to get out there and start a business. You may still be nervous. Either way you’ll never know until you try. Whether you’re starting a business or trying to come up with funds for an existing business there is always an option. Look around you and try to identify businesses running on their own funds. They happen and they succeed. Why can’t you?

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Thanks for sharing...

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