IS MONEY THE DREAM STOPPER?

Posted by Tisha Tolar on April 28, 2008

Starting up a business is not for the weak and unmotivated. However, even if you are the most business-minded, ambitious person you know, sometimes it is money that is holding you back from following your dreams.

Experts say that it is best to put away 3-6 months worth of living expenses before you attempt to open your doors. Because infant businesses can be so unpredictable income-wise, having a back up financial fund is important. The stresses of starting a business mixed with the financial concerns of making the ends meet every month can wear you down quickly and it sometimes forces people to give up way too early.

Depending on the type of business you wish to open, there may be ways to avoid having to save up so much money. Not everyone will be able to stash away that much cash and it should not stop you from pursuing your dreams. There are the conventional ways of finding money. You could ask family and friends to invest in your dreams, secure a small business loan, approach outside investors, or you could simply save the capital yourself. Most of these avenues will require you to have a solid business plan, good credit, and a lot of belief in your ideas. It also requires time and effort and a lot of extra responsibilities.

You could also use a little ingenuity to get to your dreams a little bit faster. Consider what the purpose of your business will be. If your skills can be used in a freelance capacity, get your name out there while you still have a full time job and a steady income. Don’t quit your day job until you are secure in your new career path. For example, if you are looking to open a virtual assistant business or another internet-based business, start looking for opportunities during the evenings and weekends. There are plenty of freelance job opportunities available online. You can also solicit business from local people who already know you. Start telling people you are opening a business and are looking for opportunities. Start small so you don’t become overwhelmed with the part time and full time work. As you begin to build a client/customer base, you will also start to truly understand what it takes to be in business for yourself. When you are ready, you can leave your full time security blanket and still feel comfortable venturing out on your own.

Any savings you have should be invested into the main components of what you need to get your business off the ground. If you can work from home, do not spend money on anything that is not essential until you can really afford it. Small business credit cards are also becoming more conducive to the needs of small business owners. Do not max out the credit card but at least have one business credit card you can use in a pinch. Select a card that compliments your business. Whether you choose a card that offers cash back rewards or one that offers great discounts on office supplies, make sure the card makes sense for your business. Pay the bill on time each month and build the credit of the business as much as possible.

While money is important, it should not become the roadblock to what you want to do. If you are dedicated and truly passionate about what you want to do, nothing should stop you.