3 Ways to Be Financially Resourceful When Starting a Business
If you’re starting a business, chances are you’ve already realized you need to be financially resourceful in order to make it. This is especially true in the first couple of years and if you plan on bootstrapping.
I often get asked how I’ve managed to be so financially resourceful in my own business. I’ve turned a profit every single year whereas most business either break even or are in debt when they get started. The journey has not been easy, but it has been worth it. Here’s how you too can be financially resourceful in your own business.
Accept that it will take longer.
We often want really fast results in business. The truth is nothing works that way. Furthermore, if you’re dealing with limited resources then you have to accept the fact that this may take longer.
I have always been okay with the fact that my success has been slower. I want a business built on solid ground, not sand. In order for me to do that, I need to take it slow and steady – and that includes my financial resources.
Spend money on the right things.
A big reason why so many businesses fail is that they run out of a cash. In my experience, it’s usually because they aren’t financially resourceful and spend money on stupid things. Or, they spend too much money upfront instead of layering in investments.
For example, I see business owners spending thousands on web design and photo shoots but flinch when they need to spend money on a marketing class. The truth is you won’t know what to do with those photos or web design if you don’t understand marketing first.
That’s why I suggest that if you’re going to spend money (you inevitably have to), spend it on education first. Granted, this is a lesson I learned the hard way, but I figured it out early enough to correct my mistakes.
Ask for help.
There have definitely been moments in my business when I’ve called in favors. I’ve borrowed equipment, friends have done me a favor and colleagues have helped me with their wisdom.
For example, I’ve never paid more than $100 for photos. My first photoshoot was in my parents’ living room where my brother took photos with a broken camera. The next two photo shoots were friends doing me favors. And the last photo shoot was a part of a business retreat in Puerto Rico where I only had to pay $100.
I’m also not above doing some things myself to save money. For example, I am currently restructuring after losing a team member. It turns out that between the software I use and the ability to do things quickly myself, I don’t need to really spend the money.
As you can see, I’m scrappy and financially resourceful. Especially when it comes to things I know I probably shouldn’t be spending too much money on. This allows me to have a profit and free up money to invest in things I do need – like contractors and systems.