Money Matters: Saving for a Big Expense? Collect Money Like an Entrepreneur | News, Sports, Jobs

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Young couple, satisfied customers choosing refrigerators in appliance store.

If you are starting a business or just managing your life, here are some tips for you: “Don’t wait to turn your business idea into reality”.

This advice comes from Pete Ord, founder of the customer integration software company GuideCX. His recent article in the Daily Herald, “How a Business Startup Can Help Get Your Business Idea Take Off,” explains how to start a business from scratch. As I read it, I realized that his advice could apply to anyone!

So if you’ve got a big expense coming up like a vacation, a down payment on a car, or even a new appliance, keep reading for some reference tips on how to raise money as an entrepreneur in your business. own life. When you start early, research and prioritize, figure out how much you can afford, and do what you can with what you have, you’re on your way to making that big purchase with confidence.

Start early

For startups, “securing funding takes a lot longer than you might think,” Jamie Johnson told http://uschamber.com. “On average, it can take 14 to 19 months between funding rounds. For this reason, you need to start networking with investors and researching financing before you feel ready. “

Let’s say you are the parent of a young family of five with a four month old child who will soon be eating solid foods. Your little fridge is starting to get a little too full, but you’re okay right now. Looking to the future, you realize that jars of baby food are sure to overload your shelves, so you will need a bigger refrigerator in a few months.

Before making purchases (like a larger refrigerator) that are outside of your regular monthly budget, wait at least three months before, recommends family finance guru Jordan Page to http://funcheaporfree.com. It gives you time to put money aside, lets you take advantage of the holiday sales, eliminates impulse buying, and gives you time to do your research. Waiting just three months means you’ll have the best refrigerator at the best price once that little one joins you at the table!

Search and prioritize

To prepare for receiving business financing, entrepreneurs should “research [their] industry, competitors and market, define [their] products, prepare financial projections and determine how much money to raise, as well as decide whether to dip into debt or equity, ”Thomas Smale, a small business finance expert, told http://entrepreneur.com.

As an individual making a large purchase, it is also important that you conduct research. Research the refrigerators on the market, determine how much money you need for the type of refrigerator you want, and decide if you can pay for it in cash or if you’ll need help, like a zero-rate credit card percent.

Also, determine where this purchase is on your priority list. Here is a suggested order of priority for expenses and savings of Bank of America:

  1. Emergency fund
  2. High interest rate debt
  3. Retirement
  4. Short term goals
  5. Education

Figure out how much you need and can afford

Entrepreneurs who determine how much money they need should answer these three questions, according to http://capitalisme.com:

  • What stage is your business at: start-up or growth?
  • What is the purpose of the financing you need?
  • How much capital do you already have?

Likewise, in our scenario with the refrigerator, these questions can help you determine how much you need and what you can afford. You are in the “growth phase”, with more income than the last time you bought a refrigerator, and you need a refrigerator that will last a few years as your young children grow older. You have enough money to pay about half the value of an average large refrigerator on the market, so you know how much you’ll need to save to buy a more expensive or more affordable brand.

Do what you can with what you got

In the entrepreneurial world, “seed” is the term used to start a business using only the money you already have – no outside funding. It may seem impossible to start a business this way, but in some cases it can actually be more effective.

Ord, the founder of GuideCX, shared an illustrative example in his article on Seeding: “I once went to a networking event for startups: instead of supporting me, some people started delisting me for seeding. But when I asked them how many clients they had, the answer was often “None”. Some people there had raised up to $ 6 million but still had no income. “

Ord, on the other hand, quickly got clients, and soon enough he generated income and raised funds from venture capital firms.

When thinking about your new refrigerator, it is important to apply the principles of financial prudence. Your food doesn’t have to chill out in the fanciest fridge money can buy – any fridge that’s large enough will probably do. It doesn’t mean you have to go cheap. It just means that once you’ve saved up enough money for the refrigerator you need and want, go ahead and buy it!

Whether you’re saving for a double oven, orthodontic treatment, or a trip to Australia, the Principles of Corporate Finance are great tools to add to your tool belt. By starting early, doing your research, figuring out how much you can afford, and doing what you can with what you have, you’ll be up to that big purchase in no time!

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