Investing in your first business is a big step. Without proper planning and saving, your business could be off to a very stressful start.
Trust me on that one!
However, if you have a bit of money saved up and can lower the amount of debt you have as a new business owner, the process is much smoother. Here are a few of my favorite ways to save up for your first business and give yourself a fighting chance.
Related: Start A Profitable Blogging Business in 10 Simple Steps
Automate Your Savings
It’s hard to spend money if it’s not there for you to spend. As soon as you get paid, put some of this money into your business savings account.
Every time you get paid from your current job, take a certain percentage and put it towards buying or starting your first business.
Use Credit Cards That Benefit You
We all spend on credit cards. Since you know you will be buying a certain amount in a month, try to put it all on one card that has great benefits. If you can earn 3 or 4% back on your purchases, you can invest that money at the end of the month.
Some credit card companies will allow you to automatically put your rewards into a separate account; this is how to do it. Again, if it’s not there, you can’t spend it!
The Infamous Side Hustle
How about making a little extra money on the side until you are ready to go out on your own? A side hustle can take anywhere from a few hours a week to a few hours a day, but it’s a great way to bring in some extra income.
With remote work opportunities just staring you in the face, you can do anything from consulting to selling. Use online platforms to pick up a freelancing gig or two; the side hustle doesn’t need to complicate your life; choose something interesting and do it during times that are convenient to you.
Related: How To Make Money Online For Beginners
Meal Plan
It may sound like a simple idea to save money for your first business, but savings based on meal planning adds up fast.
Meal plan once per week, and shop once per week. Shopping all at once keeps you out of the stores and will ensure you don’t spend more than you need to. When you meal plan, you are more likely to use all your ingredients instead of throwing things away.
Also, meal planning keeps you out of restaurants which are not the places to be if you are trying to save money. A little tip here…
Really want to go out to eat?
Go out to lunch, it’s MUCH less expensive, and you can then use your meal plan to eat dinner at home.
Related: How To Save Money For 63% of Americans Living Paycheck to Paycheck
Think Outside The Box When It Comes To Funding
Bank loans and SBA loans can be a great way to get started with your first business, but it’s not the only way. For some first-time business owners, securing financing is a major problem.
Consider peer-to-peer lending; what about bringing in a partner? There are ways to finance your business that could put you in a better financial position and get you up off the ground much more quickly.
Final Thoughts
I’ve always noticed that those who are ready to buy or start a business find a way to do it. Even if you have to cut back on a few of your discretionary spends for a little while, when you make it to the world of business ownership, you will feel more control over your daily life.
It’s a feeling that makes it worth it not to go out every Friday night for a little while. Be diligent about the savings and create a routine that always adds to your account. Once you become focused on saving money, it becomes much easier to reach your goal.
Featured Image Credit: Adobe Stock.
