We all have the business of our dreams in the head, but the financial issue slows us down. Before throwing yourself into the ring, consider these actions.
We all have in mind the business of our dreams that we want to undertake, but we are afraid to do it for fear of failure, and we lose our heritage. One of the main reasons why people do not undertake is for a financial question: With what money do I start? How do I keep it? How do I manage it? All are vital questions.
According to data from the 2013 Employment Survey, eight out of 10 young Mexicans intend to undertake. Among the reasons are being our bosses because we believe that we will earn more money because we will have freedom of schedules, more flexibility, and we will not deal with a superior, but these conditions can become simple myths.
While the idea of entrepreneurship is attractive, it also relates to fears. Or don’t we all know the story of someone who lost their money from starting a business? Therefore, before you quit your job and throw yourself into the ring to open your business, we give you some tips to help you.
Make a Business Plan
A business plan must be able to decide whether the business is viable or not so as not to play your assets. The plan must contemplate a detailed budget for the first three years of your idea’s life. Here, it should be clear what your brand brings and why it is special. Also, you must have a financial plan in which you know where the money comes from and where it goes.
Set Your Salary
As an entrepreneur, setting a reasonable salary and separating your personal and business finances is essential. Avoid using business funds for personal expenses.
Remember that you are not the “petty cash” of your business, and the business is not the “petty cash” of your family.
Analyze the Competition
Research and understand your market thoroughly. Knowing your competition and your business’s unique selling points is essential for success.
No matter your passion, you must have all the information in your market, your competition, and complete knowledge of what you will offer in your business to avoid problems. Do your homework! That nothing costs you; on the contrary, it will help you finish polishing your business.
Maintain Your Vehicle
Keep driving your car unless you have to stop it. Car business owners must upgrade their vehicles every two or three years but can no longer afford this expense. Take your time with this, and you should purchase a reliable car. Also, make a proper plan for major errands on the same day to reduce parking and fuel expenses.
Avoid Cash Deals
You should steer clear of contracts with extended durations, whether they span ninety days, six months, or a year. If your obligation stretches over such periods, timely payment can become a challenge, potentially resulting in substantial interest rates and financial stress.
Effective Money Management
Once you have your business plan – including the financial part – what follows is how to manage that money. Whether it’s the money you saved for a long time, the money from your partners, a bank loan, etc., you need to tidy it up.
An application that has proven to be an ally of entrepreneurs is the online platform, which helps manage your savings so that you meet your goals.
One of the keys to saving is to have a clear objective. This platform allows you to have several goals and use money with the order. That is, you can open an account to save for the purchase of an apartment while saving to open your business, and you also have an emergency fund. Altogether, but not scrambled.
This way, you will avoid confusing your company’s money with your own, as it will be all through separate bank accounts.
You have to create a profile and indicate that you are saving for a business in the future. It will depend on how long you want to open your company and the risk that the system will recommend you. If you are starting, you better stay in a conservative investment profile to have the money at hand at the right time.
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