7 Steps to Budgeting Your Small Business without Investors


Want to start your own business and have total control? No question of being accountable to any investor on your decisions, your products and others..

It’s entirely possible, if you have a certain budget and are ready to make efforts to realize your dream!

Here are 7 steps to budgeting your small business without investors.

1- Save as much as possible

The best way to start your business is to be able to support all expenses without getting into debt. As you prepare to launch your business, you need to save as much as you can.

Small sacrifices will certainly be needed, like fewer outings to the restaurant, suspend unnecessary subscriptions and avoid travel.

2- Gather money

Cash will be your first need to start your business.

Gather all your savings and place it on a chequing account or a professional account. This precaution has two uses:

  • Before you lend money, banks and other financial institutions will check the time your money has spent on your account. Opening your account and placing your money early is a positive sign.
  • The money thus placed will be less tempting! If it remains available on your checking account, you risk to tap in for unnecessary expenses.

3- Work part time

Initially, your business income will not be enough to pay all your bills and support your family.

To earn extra income, work part-time. This means that you may have to work at night or on weekends, to avoid interfering with the opening hours of your own company.

4- Sell what you do not need

Do you have a car sleeping in the garage? Dozens of clothes that you have not worn for at least a year? Old furniture left at your parents’ house?

Sell ​​all these unnecessary assets to invest in your business or help you pay your bills.

5- Borrow wisely

No matter how much you save, you may need to borrow money to start.

You will have the choice of several types of loans: secured loans, unsecured commercial loans, SBA loans and personal loans. For each of the options, weigh the pros and cons and show yourself reasonable.

Do not borrow more than your needs and above all, no more than your ability to repay.

6- Save money on purchases

You can save by buying furniture and other second-hand equipment instead of new.

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Work at home as much as possible. However, if you need premises or warehouses, choose areas away from downtown to save on rent.

Even if you do not start with the equipment of your dreams, your business will have more capital to support its launch. After making your first profits, you can then reinvest in equipment.

7- The useful before the pleasant

Make the difference between what your business needs and what you want.

Are there things you can do without for a while? Can some items wait until you can pay for them? If so, be patient.

Take care of what you need first and then what you want when you can afford it.

Starting your business with capital generated by your income alone is possible, provided you have limited needs and know how to save. If it is not always easy to reduce his lifestyle, say that it is to better increase afterwards!


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