Good afternoon. Today I want to share with you all something I ran across the last week at a seminar. The seminar was based on home based business tips. During lunch break (actually one of the best times to get some of the best insights on home based businesses) a man was talking about his start up and how he could not understand how, after investing the large amount of money he did, that his business was not taking off.
One of this mans biggest downfall from the get go was overly spending his capital at start up. Unless you already have a solid clientele established at start up, only spend money on absolute essentials. You cannot assume that you will have a steady stream of cash coming in immediately.
Overly spending on start up on equipment you do not need is very risky. Those extras can come later after you have a solid clientele base. You do not need the fancy office chair, top grade computer equipment, or other frivolous items. Ask yourself honestly if you really need it or if you can still perform your functions fine without it before dishing the money out. Poor financial planning at start up is the demise for many home based businesses. Think smart before you spend.
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I probably invested more than I should have but I was able to get a small business loan and felt that it was the right way to proceed. It didn't turn out as well as I hoped but it was OK.
ReplyDeleteIt's funny you should mention success at lunch time. Several of my friends and acquaintances who also have home based businesses get together for lunch 2 or 3 times a month. It's a sharing of information and experiences that I wouldn't be able to get any other way, and it's free, after the price of your lunch.
ReplyDeleteI started my business with only my phone, computer and car. I have since added other things but they really weren't necessary when I first started my business. I'll be moving to a new location soon as I've outgrown my home. It's a great feeling.
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