Greetings, Frugalists! We have a guest blog today from Barry J. Moltz. Barry has founded and run small businesses with a great deal of success and failure for more than 15 years. His first book, “You Need to Be A Little Crazy: The Truth about Starting and Growing Your Business” describes the ups and downs and emotional trials of running a business. His second book, “Bounce! Failure, Resiliency and the Confidence to Achieve Your Next Great Success”, teaches how to gain true business confidence.
For those with an entrepreneurial spirit, here are Barry’s three ways to not break your budget when you are starting your own franchise:
1. Never Pay Cash: Regardless of what you buy, try to get 45 to 60 day terms to pay for it. If you can’t accomplish this, then pay with a credit card right after your statement comes every month. This will at least give you 30 days to pay for your purchase. Better yet: After getting 45 to 60 days to pay, see if you can pay then with a credit card- that will give you a 30 day bonus!
- Hire No Employees Before Their Time: Try to keep all of your people resources variable and available. Don’t hire company employees, but use independent contractors (pay attention to the rules around using them). Better yet: Do not stock inventory. Have orders drop shipped to your customers.
- Stay Virtual. Don’t grow yourself broke by increasing your fixed overhead costs for your business. Unless you are a retail store, try to put off committing to expenses like rent, furniture, and phone systems. Work out of your home or favorite local coffee place that has free Wi-Fi service. Better yet: Go visit your customers. You are more likely to make a sale by building a personal relationship with them.