Now that you have decided not to wait until retirement, the next step is to build your starting capital. Begin small by setting aside 10% of your income in a separate business checking account. This dedicated capital will help you purchase essential small items needed to start and grow your business.
It’s time to bring out all those craft products you’ve made and sign up for local craft fairs. Also, explore opportunities at your local farmer’s market to set up a table showcasing your creations. These initial steps will help you test the waters and gain firsthand experience in selling your handmade crafts.
Many people dislike the word budget because they feel it restricts them. However, a budget is simply an estimation of revenue and expenses over a specified future period. It is utilized by governments, businesses, and individuals alike as a financial plan for a defined timeframe—typically a year—to enhance financial success. You may not like the term, but having a financial plan will prepare you to create and maintain your starting capital.
Below is a sample budget and checklist. Choose the words that resonate with you the most and fill in the blanks to create a plan tailored to your financial goals.
Fill-in-the-Blank Exercise:
- What word makes preparing for your business resonate with you?
- Choose from: Cash Flow, Plan, Financial Freedom, Financial Worksheet, Spreadsheet, Forecast, Blueprint, Accounts, Statement, Financial
- You get paid Bi-weekly/Monthly. Do you have at least $100 left over for spending money? Give your net pay a home and assign it a name.
- Choose from: Allocate, Allot, Assign, Earmark, Designate, Appropriate, Set Aside, Award
Business Preparation Checklist:
☑ Research your business idea (utilize free resources like your local library) ☑ Look for courses at your local community college (continuing education programs) ☑ Start running your business on weekends ☑ Create your __________ (Blank #1) – Track where your paycheck is going ☑ Set aside 10% of your income for yourself ☑ Maintain 1-2 self-enjoyment plans (such as magazine subscriptions) ☑ Continue saving for retirement ☑ Pay bills, utilities, and housing expenses ☑ Set a personal spending ________ (Blank #2) limit for the next two weeks ☑ Take the hard step: Reduce reliance on credit cards ☑ Create your own spreadsheet to track finances and business expenses
By following these steps, you can systematically build your business while maintaining financial stability. The key is to be intentional with your spending and saving, ensuring that your resources are allocated toward achieving your entrepreneurial dreams.
Stay focused, stay committed, and watch yourself bloom!