Work From Home On A Budget
When you're first starting out as a entrepreneur or someone who is creating a brand new business from scratch, you can soon eat into all your savings when you come across problems and issues. Everyone has an idea of how much they'd like to spend but more often than not that money soon reaches its limit, causing many to give up their dream or have to put things on hold.
The budget is your first tool for saving your new business from disaster. You plan your work according, the amount of months it's going to take and calculate all the expenses you expect to face. That should be your starting point. It'll allow you to track how much money you are spending over time and whether or not you'll manage to keep within by the end of the duration of the project.
But obviously, sometimes working to a budget doesn't work out and you need to cut costs somewhere. Or perhaps you simple don't have enough money to fully start your project so you need some cost-saving tips. Well the first thing is you need the essentials:
- A place to work (your home? A public library? A shared office space?)
- A computer to do your work
- Money for bills/rent
- A detailed business plan
Where You Work
You need to figure out the cost of where you're going to be doing your work. If you're simply a one man show, consider just working from home and saving money. You can also write off a % of your living costs on your taxes since it's being used for your business. Living from home is also a lot simpler; there's no need to go searching for some rental space; you don't need to take equipment backwards and forwards. You also get to work when you want to work, whether that be at 3am or 10PM at night.
Have A Computer
Starting business you're most likely going to need a computer. These days they don't cost too much and chances are you already own one. If you don't, look on eBay for used computers and if you're really struggling check out a public library for access to one.
Make sure you have enough in savings for rent and bills. Don't start your business with the expectations of earning enough in the first month to pay for these expenses because chances are it won't work. Most businesses fail and so you need to be prepared to work for many months without any income or very little compared to what you expect. Having a nice chunk of savings will help you with this.
A detailed business plan should be the finally ingredient that will help you save money. It'll allow you to not waste time and other resources on ideas that might end up being cut from your business. The plan can outline who you need to hire, what work needs to be done when and figure out any scheduling issues. Remember, if you have to wait three months for a contractor to finish work, thats 3 months worth of rent you need to cover too.