Keep your money!Oct 12, 2021
For everyone just starting out this is a BIG one.
Spending money is FUN.
It's easy to tell ourselves we are doing the work, and moving the business forward, when we are doing things like getting an office space, buying inventory or equipment and paying for other services.
The truth is that those things do need to be done, EVENTUALLY, but anything that takes money out of your pocket, should be last on your list of things to do. Save the spending until the expenditure truly needs to be made.
Spending is the easy (and fun) part, so it's easy to turn to that when the other stuff drags you down, and rationalize that you are still "doing the work."
But things like inventory, supplies, rent, ongoing service fees and trademarking should be put off until the last possible moment.
It's likely to take longer to get started than you thought, and even longer than that to turn a profit, so don't rush to make those purchases.
Some good advice is to take the money you expect to need and double it, along with the time it will take to get operational, and the issues you will have along the way.
As entrepreneurs, we tend to be optimists, which means we also tend to lean toward the best case scenario when planning. So keep that money in your pocket and work from home until the last possible second, don't buy that expensive equipment until you are ready to use it, and get all the low cost and free groundwork done before you move on to the expenses.
Keeping a tight reign on spending, while you get your business started, is a smart strategy to help make sure you have funding when you need it.
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