Being Frugal In Business
When I worked a 9-5, I had a simple dream. As silly as it sounds, writing this blog was part of it.
If I was still in the rat race, I’d be sat in a canteen right about now.
Wishing my day away.
Disclosure: Based on personal opinion, not to be taken as advice. Seek a professional if required.
We used frugal living to save money, cut costs and enable us to chase our dreams.
It’s a simple idea, although not often promoted.
In this post I’ll highlight the benefits of being frugally minded when creating a small business.
Fake It, ’til You Make It
We often rely on clichés, even when they make no sense for the average person.
When your dream is to have your own business, and enjoy the freedom that brings, it’s going to take more.
Dressing up and throwing money around, doesn’t make you successful. Even if it makes you feel like a success, it doesn’t change the income report.
Your chances of making it are greatly improved if you keep your feet on the ground.
There is no need to:
• Take out debt for any reason
• Spend large chunks of your savings
• Buy fancy clothes to look the part
• Buy a supercomputer to blog
• Behave in a particular way to be considered an ‘entrepreneur’
If you’re trying to start a small, sole trader online business, something to free you from the day job, then agree with yourself, you are not trying to compete with Apple. You are not trying to start the next Google.
Be reasonable with your expectations, because those expectations can get costly.
Frugal Business Meaning
Frugality in business means that you get more opportunities to succeed.
If you’re not ‘splashing the cash’, you can use it to fortify your financial position.
So, you can go for longer without requiring more money.
Imagine if you Faked It ‘Til You Made It, and you spent large chunks of your money in the process. Imagine if you went even further, and took on debt.
What happens if the business fails? You go back to work, and pay back the debt.
What if you minimised your monthly expenses, and saved a large pot of money before you even started the business? What if you spent sensibly, buying only what the business absolutely required?
What would happen if the business failed?
You could start again, with another idea. Or, you’d have more time to keep pushing the business forward. Giving yourself a good opportunity to succeed.
The more you can reduce your monthly expenditure, the less the business needs to make to replace a wage.
Chasing Dreams While Living Frugally
A new small business, or home business, is very different from an established cash generating business.
The business generating cash can afford to pay for tasks to be offloaded to a service provider. Like social media, for example. Maybe, you’d rather pay somebody else to complete that task.
At the beginning, before a penny has been made, I would be doing it all myself.
For me, a small business is all about creating a new way of life. One that is free from the ‘workplace’.
Behaving in this way, may mean that it takes longer to grow the business. However, it’s a pretty stable and sure way of operating. The risk of failure is greatly reduced.
Not because we do anything ‘special’. Simply because a minimal economic footprint, means a stronger financial base from which to build.
Simple Steps For A Low Risk Business
• Before you start, minimise expenses and save as much money as you can. Create a pot of money, that could sustain you for several years.
• Focus on cheap business ideas. Online businesses are perfect: Blogging, digital downloads, advertising, etc.
• Only purchase tools and equipment you absolutely need for the business.
Treat the business as if it were a person (really? ?). Yes. Like it were a child.
Does the business need that item? Can it make do without it? Can you comfortably afford it?
Lastly, it’s a good idea to have a budget in mind for the new business. I would set a cap of a few hundred pounds. That’s it. Then, I would do my best not to spend it!
Freedom2Try.com is hopefully at the early stages of a viable business. I have spent about £30 on this business/blog.
The costs include purchase of the domain, and hosting.
While I set aside a budget of £300 (for a number of business ideas), I don’t intend to use it.
All of this means I can keep trying. I’m not pressured to ‘give up’, until I’m ready to.
I won’t take on debt, so I don’t have to worry about paying it back. And any business expenses will grow inline with my business revenue.
From Frugal Living, To Frugal Freedom
Frugal Living not only supports you as you chase a dream, but it also provides a sound basis for business.
That’s why Frugal Living and Online Business go hand-in-hand.
A Frugal Business allows you to persist, with minimal overall risk.
And, ‘Pressure Over Time’ means that you’re likely to get some success, just by sticking around!
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