These days everyone is talking about being an entrepreneur or business owner…It plagues the social media world. I’m not saying it’s bad because sometimes you gotta fake it to you make it. Another point, entrepreneurship can be on any scale out there. You have a service or product that is sold for profit, BOOM, entrepreneur.
There are lots of reasons people want to become entrepreneur’s, either its financial freedom or you hate your boss, starting your own business can be difficult, especially if you don’t plan for it. Here are 5 ways to stretch your money to start a business in 2019.
Profit First Accounting Method in Short:
MikeMICHALOWICZ the Author of Toilet Paper Entrepreneur has a very unique way of running his businesses and It’s called Profit First.
You can read it here:
The idea behind Profit First Accounting Method is to stretch your money by pulling your profit first (what you want to live off of) and using the rest for other expenses. By doing this, you find creative ways to not spend your money.
Let’s say you make $6,000 a month. All of your expenses cost $4,000 a month. This gives you $2,000 dollars to live off of.
With Profit First, you will look for a creative way to lower your expenses to give yourself more profits and cut the BS expenses.
-Now here are the 5 steps to help stretch your money to start a new business in 2019.
1. Start tracking your expenses- To save money, you need to know exactly where your money is going. I can guarantee you, spend a lot of money on food.
This can easily be fixed by buying meal prep if its available in your area or making your food yourself. There are plenty of Excel templates out there to help you do this. I highly recommend tracking your expenses. If you can’t do this without having your own business now, you will be in a world of pain when and if you launch your business.
2. Find out what you can cut back- By tracking your expenses, you can categorize expenses and find out what you need to stop purchasing.
Are you spending a lot of money on gas, eating out, recreational activities? By categorizing expenses, you can cut out the expenses that won’t lead to opening your own business and becoming your own boss.
3. Increase your income- This will seem a little harder than reading it on paper, but I am serious. How many hours a week do you work? If you truly want to open your own business what are you willing to do? Flip things on eBay? Sell old clothes on Offerup? Or get another job?
If you work 40hours/week. You can easily get another part-time job. Preferably something with tips :). For ideas on flipping, read Finding Your Side Hustle: How to Make Money Flipping Your Old Things.
Find a way to create a second source of income and live off the lower income source. (Ideal: Profit First Method)
4. Find the time- Analyze your time for each and every day. Most likely you are sitting on the couch watching Netflix. God Bless Netflix. People like Jocko Willink preach the importance of waking up at 4:30 a.m. to “Get After it.”
You have the entrepreneurial hero Gary Vaynerchuk who preach the importance of starting and running your business after your day job. For example, if you work a 9-5 job, you can easily work on your side hustle from 7 pm to 2 am and still get enough sleep to function. Basically, there is no excuse.
Pro Tip: write down an hour by hour list of the things you do every day for one week. You may be surprised to find out how productive you could have been.
5. Invest Your Money– Instead of buying the new Jordan’s/Yeezy’s, iPhone, or expensive gym membership, try looking for creative ways to save money. In a nutshell-(Don’t be the cool young guy).
My father-in-law has the best mentality on this, “in a minivan, you are invisible.” I absolutely love this ideology because when a millionaire can drive a minivan, he is most likely putting his money into smart investments. For him, its new businesses, stocks, real estate, etc. But! You don’t need to be a millionaire to start now. You can start with Bank IRA’s, stocks, and real estate.
Personally, for stocks, I use RobinHood as a beginner trader application purchase and sell stocks. You can start now by clicking here.
It’s a wrap!
All 5 of these steps are important because they compliment each other. You can’t possibly know which is the right way to invest your money (Step 5) without finding the time (Step 3). If you aren’t researching a way to get the best Money Market rate, or which stocks have a solid performance pattern, it will feel like a failure.