The answer is NO, you do not have to be out of debt to start your business. (As a side, no you do not have to be out of debt before you get married either. I get this one a lot too!) Anyway, moving right along, here are a few financial things to consider before you jump into the world of being your own boss....
Have You Mastered Your Money?
If you think handling the family money is a pain, wait until you start a business! You must have a process in place and some discipline in handling your personal finances in order to be able to successfully manage your business income and expenses as well.
Can You Answer YES to These Questions?
- You complete a budget each pay period and you know where your money goes
- You write transactions in your checkbook when they occur or at least by the end of the day
- You balance your checkbook to your bank statement when it arrives (or online)
- You've reigned in unnecessary spending
- You do have a plan for paying off your personal debts
I do suggest having at least your partial emergency fund of $1,000 saved.
Saving For Your Business
First, complete a 'Startup Expenses' form. You can find one here: http://www.score.org/ .
List everything you will need to start up and the cost associated. Then, look at your personal budget and calculate how much can be allocated toward saving for your business each pay.
Essentially, you will add a line in your budget for let's say 'Dave's Detailing' and assign it a dollar amount. Be disciplined about setting that money aside.
Stay away from debt... I'm the poster girl for the bootstrapper. Bootstrapping allows you complete freedom, no one gets a piece of the pie but you because you didn't borrow money!
So off you go... get busy ... live your dream, start your business, just plan it out!!
Need some motivation? Check Out These Tunes!
McFadden & Whitehead - Ain't No Stoppin' Us Now
Survivor - Eye of The Tiger
Ben Harper - My Own Two Hands
Your Financial Coach,
~Dorethia
http://www.connercoaching.com/
No comments:
Post a Comment