Funding is always a problem when you are trying to start up a business. You then ask questions like “Should I quit my job so as to concentrate entirely? Will I be able to take care of my expenses per month?
When the time to launch your business comes, you should have done all your home works about the starting up funds the business needs. You need to be very prepared in case an opportunity for you to push your lunch comes, you are ready.
Assess all Your Personal Finances
Take all your credit card statements and checkbook out and review all your private expenses. Find all the flaws and eliminate them. It can be extremely difficult to carry out, but if you really want to get things done, you might have to reduce your personal expenses.
To take control of your business start-up capital doesn’t imply that you would have to suffer. You only have to reduce it for now. Bypass the night shows and go for something else instead. Postpone that tropical vacation for the next one year.
Evaluate Your Business Expenses
Your minimum business expense is another element of business start-up funding. Fortunately, computer consulting isn’t a capital-consuming means. Although, there would be business expenses to cover so you will have to analyze what those are and fix them into the needs of your business start-up funding.
Do the calculations
Add up all your business and personal monthly expenses. You should have up to six months of cash in the bank or other source of affordable start-up fund. It is impossible for a lot of people, to have six months cash to cover their business capital needs. If you have such problems too, you might need to keep your job or find a new one.
You can limit the job to about 15-20 hours per week, so you would have enough time to focus on your business. It could be teaching of computer courses in any regular college or any other job that would give you enough time and income to sustain you. And you can use the income you get from it for your personal expenses or with it, built your client base.
Having enough business start-up funds is one of the most tasking phases of starting up a small business. I’m sure you don’t want to overlook the importance. Truthfully, one of the reasons why businesses fail is due to inadequate business start-up funding.
The Base of Business Start-up Funding
A simple thing I learned is this. To do what you want to do in the future, do what you have to do now. To have enough start-up fund, you need to reduce your spending drastically. You need to know how your money is being spent so you would have sufficient funds to cover you for 6 months of expenses. You can just get a part-time job if you don’t have enough funds.