For many people to have only one job is not enough when the burdens at the end of the month do not stop growing. Moreover, there are always those costs that we can not predict and as such we can not control. So, if you think the time has really come for you to invest in a business that you believe will work, consider the following advice when setting the budget.
When you have a family with children, the expenses are immense and dealing with all of them can sometimes become unbearable. So if you want to have a minimally comfortable life and not have fun with your programs, one of the chances is to create a business of yours that allows you to withdraw some extra money at the end of the month, but at the same time do not consume it too much, because above all he needs to rest and have the strength to be able to handle two jobs.
Study the product and potential market
Before venturing into your business, you should talk to family and friends and ask for their opinion (as potential customers). Feedback is always free and encourage you (if that’s the reason) or call it “right.” You should understand what your target audience and product or service characteristics will be, in turn, to define the characteristics of your market. From the moment you get a structured idea of how you would process the business, you can define a business plan and manage to structure the costs to carry out the same. Thus, you will be able to have an estimate of the efforts that would be necessary to obtain this budget.
Put a percentage of the side order
If every month, apart from the savings you already make for the holidays or for whatever purpose, you can withdraw another amount (however small), it will be another way to get your business started fast. If you manage to manage your expenses monthly and, who knows, make predictions of what you can save on an excel sheet or on platforms like Infant Phenomenon, you’ll be able to see where you can cut and where you can invest to get the return you want.
Participate in ideas contests for new business
More and more are the contests that are created around themes such as innovation, promoting entrepreneurship. These competitions, both global and national, sometimes involve prizes in monetary value. These awards could be enough to get your project started. Sense and good sense are crucial at this early stage. So, choose to start slowly and cautiously, because the initial costs are the highest.
Promote the idea: Turn to CrowdFunding
If you think your business idea can attract a lot of “supporters,” one of the ways you can get more help and greater collaboration for your project is through crowdfunding campaigns. The advantage of this “medium” is because it has high exposure and your campaign can benefit from it. Anyone can invest, and the methods to contribute are through Multibanco, bank transfer and PayPal. But attention, depending on the amount invested in your idea, discounts are usually offered (or other benefits) in the pre-sale of the product or service. In Portugal, there are two platforms with a lot of success, as is the case of PPL and the Boa Boa platform.
Compare all forms of financing
If you think that the above ideas may not be enough to leverage your business and require an initial investment higher than normal, you always have at your disposal other forms of financing more common:
- Microcredit would be a well thought-out solution for not very high amounts and adherence to it is quite simple and with low interest rates. For many, the major drawback is that a guarantor is required;
- Through your bank history, when availing a personal credit you can have a pleasant surprise if you claim that you need the money to develop a project. If you have other credits already running and you want to join them all by reducing the monthly fee by up to 60% so that you get more comfortable at the end of the month, you can always try to renegotiate the amount owed or consolidate the credits you already have and ask the to advance with the new project. You can consult here the best solution for you;
- You can also use business angels or venture capitals , which would give you support in managing your assets and the amounts ceded are generally high in character;
- Mortgage credit would be another alternative to get the budget you need for your business once and for all. This type of financing offers low interest rates, but the bureaucratic process is too lengthy and the payment deadlines are high.
From the moment you get the amount you need to start your business, then yes, it will start a new phase of your life. Subsequently, you will have to start thinking about establishing annual budgets and realize the cost of raw materials, fixed costs (space rent – if any, salaries of employees, suppliers, services, etc.), among other costs.
Good luck to your business!