One of the most important first steps of starting any business is coming up with a great idea, but, unfortunately, without any funds, this great business idea is likely going to stay as just an idea.
This means that you’re going to have to get some cash from somewhere. Most business owners stump up this cash themselves, rather than borrowing from lenders or family, so it’s time to start tightening your belt.
Luckily, with almost half of business owners starting with $5,000 or less, you don’t have to worry about saving up a ridiculously large amount.
Despite this, $5,000 is hardly pocket change, so if you don’t know where to start saving, then follow some of the great tips below.
1. Set a savings goal
The last thing that you want to do is start saving with your eyes closed. You need to know exactly how much you need to save and what you’re going to spend this money on, as this will give you the will and motivation to continue saving. Set a goal and budget your money, so that you know how much money you’re going to be putting aside every week. Then, when you start saving up, track your progress, as this will motivate you further.
2. Plan every meal
Food is the biggest expense in most households, so it makes sense to take a little extra time to ensure that you’re as financially-friendly as you can be when it is concerned. Cooking and eating at home costs a lot less than eating out or ordering takeaways, so take a few hours every weekend to plan your meals for the week ahead, and then shop around online to find which store sells the cheapest ingredients.
3. Turn down the heat
The next biggest expense in most households, especially throughout winter, is heating the home, but it is one that we can easily lower. Rather than having your heating on full blast all day and night, grab a sweater or a blanket, and turn your thermostat down a few degrees. You’d be surprised at just how much money you can save from this. Investing in some thermal curtains and draught excluders are some other great ways to keep yourself warm for less.
4. Cut TV costs
Most people spend much more time than they probably should watching television, so it should be no surprise that you’re likely spending way too much on it. If you don’t want to cut off your cable, that’s fine (although it will save you the most money), but you should consider your other services. For example, if you have Netflix and Amazon Prime, you should probably think about cutting off at least one of them.
5. Make your own coffee
Most people love to grab a Starbucks on the way to work, at lunch, and then again on the way home, but, unfortunately, this isn’t cheap, and you could be spending hundreds of dollars just on coffee. This money could easily go towards your business venture, so, if you really want to save money, buy a travel mug and make coffee at home instead. It probably doesn’t taste the same, but just remember that it’s a small sacrifice for your business.
6. Take care of your car
If you want to save up a decent chunk of money to start a business, then you can’t afford to be constantly replacing your car. To avoid this, it’s important that you take care of it by driving safely. Another big part of taking care of your car is purchasing auto insurance; Luckily, you can save money on this too. When you get car insurance, pay all in one go, rather than monthly. This means you won’t have to pay interest, so you’ll save a lot of money.
7. Work more
One of the simplest ways to get some extra money coming into your home is by working more hours. This helps you in a couple of ways. The most obvious is that you’ll be earning more money, so you’ll have more to save.
However, there’s also the less obvious fact that the more time that you are working, the less time you have to spend money, so you’ll be able to save even more. For these reasons, if you can, it does make sense to ask your current boss for a few extra hours here and there.
Starting a business is a big deal, and getting the money together, however large or small the amount, is a big deal, so I hope the tips above will help you.