How to Start Your Own Business (Cindy’s Guest Blog @ FreeMoneyFinance)

While FreeMoneyFinance is taking his sweet vacation, I am guest blogging several blogs on Staging:

If you missed the previous entries:
*Quick & Cheap Tips for Selling Your Home
*How to Earn Extra Income By Becoming A Home Stager
*Use Staging to Sell Your Home

Starting your own business is probably the best thing I have done in my life. It taught me a lot of my limits and my worth, it also has challenged my personal characters. Moreover, it is a great way to increase your net worth because after all, you can control your destiny.

Having a small business can also be a money pit, where you can over-invest on inventory (if you have any) or machinery, equipments, office supplies etc. I personally don't believe in over-investing because you can drain your financial resources very quickly. You can grow your net worth by grasping your financial picture. Here are a few tips if you are thinking about starting a small business:

1. It's okay to be small: I am very happy that my company is still very small, because it is manageable for me and if I take on full time employees then my monetary responsibilities increase dramatically. It is also a very personal thing to have my own small business, everyone who comes through the doors, including clients, become family. After all, it's a people's business.

2. Get a financial plan: We all have this dream that once we go out on our own, we will strike a goldmine immediately and clients will be calling us non-stop. Well, if that doesn't happen, make sure you do have resources to fall back on. Generally it is recommended to save 4-6 months worth of living expenses save up when you work hard to take your business off the ground. You should also speak with a professional to plan everything out financially before you start. You need to figure out what your start up costs are which include marketing, licensing fees, continue education if any, investment in inventory, machinery, computers, etc.

3. Network, network, network: It doesn't mean you go out and hand out business cards to everyone you meet, because you are not building meaningful relationships that will make you memorable and become part of someone's rolodex and referral list. One of the ways I network is that I started my own support group for other small business owners who are women. I feel that it's more important to develop personal relationships, that way the referrals are stronger and more meaningful. Running a small business can also be very lonely, so it doesn't hurt to meet other people who can support your endeavors and who understand what you go through on a daily basis. I am the only one among my friends who have her own small business. They have no idea what I go through every day and that can get frustrating sometimes.

4. (click to read the 4 remaining tips at FreeMoneyFinance)