One of the most often-asked questions comes from people who are thinking about starting a business. The question is: where should I use my newly-acquired Money to start? As a generalist in Business Administration, starting a business is a great idea, although your start-up cash may not do you much good without some sort of a plan to put the idea into action. So let’s look at the types of places you can put that money to get started. Learning how to start can be done at an academic level at Knowledge Tree Training PRINCE2 Practitioner training.
There are three types of Places to start with… your savings, your credit card, and your mortgage. Let’s look at the pros and cons of each option.
Before you start your business, you need to get some funds, and getting money for your business takes into account the elements of both a savings account and a credit card. Here are the pros and cons to each option, and why you should use the one you’re most familiar with…
Starting a business with your savings:
Cash is king, and having a good savings account will allow you to get the most out of it.
No monthly full payment. The flexibility of how much you pay with your credit card (or how much you need to pay with your savings) may mean that you can control how much you spend on your business startup or funding your cost of living.
Mentors can help. How much you feel you can trust others to help you work the numbers in your business will, probably, be the most important decision that you will make in your business. On the other hand, one question that you can ask yourself it to do your own financial projections: “Is that someone I know and trust to be completely honest with me?” based on your savings? If someone you trust does not want to be completely honest with you, you should possibly keep working with them. You can do that by reading the features and limitations that the venture capital firms you worked with an offer, even to your own savings. Do you trust that person? If not, you may be a risk.
Wages will tend to rise over time because you will continuously save more and the stakes for being late to pay your bills will continue to rise, while the amount of your salary stays relatively the same.
Good credit can and should be a determining factor in whether or not you get a loan to start your business. Your Credit score can mean the difference between being able to use a business loan or not being able to get one… which is another very important factor when starting out.
In short, starting a business with your savings gives you flexibility. However, if you budget your business startup properly, it may limit how much you’ll be able to get into before it starts to pay off. This is why you may want to consider a Smart Profits mortgage. A Smart Profits mortgage is much more affordable. It allows you to “DM” your house, instead of the Credit Card network, without any interest payments. You “own” your house in a way that you’d only receive ownership of a house by a bank. With a Smart Profits mortgage… you would sell your house (if you wanted to) and the amount you would take back the difference is the amount you paid for your Smart Profits mortgage. You would also have the right to be able to take the house back if you filed bankruptcy, and those financial fees would be refunded to you, happily, after you got your new house, and while you’re still living in it.
Here’s what you need to do as a general rule…
But oftentimes, most people just want a traditional; “safe” home or borrow a loan from the Credit Card companies offering them the best rates, who offer no additional flexibility. A good alternative would be to get a Smart Phone if you plan on staying with the same Company. A smartphone is a type of Smartphone that allows you to get a “Billing/E-Mail/Application” straight from your Smart Phone in the quickest and easy fashion to help service you through your business processes.
Another, yet another option, is to get a loan from a rich family member who could get you a loan. But be sure to make this a last resort. Getting money from someone who doesn’t really seem to be interested in your family (you might have felt like you just got permission to form your business with your partner and best friend and have always wanted to Stage a Company), and/or living for an income, is NOT the best approach to our especial point here.
When you start your company, for every reason, you will probably need to save money for initial expenses.
