When you made the decision to go into business for yourself, did you really have any idea at all about ‘start-up’ expenses? Did you think that customers and clients would be pounding on your door right away?
For some of you, that might have been the case. For most entrepreneurs, however, that is not the situation – and so you find yourself paying out more money than you are bringing in.
The good news is that is normal! Seriously – there are many start-up costs when it comes to running a business and what I have learned in working with my clients is that tends to be the biggest surprise.
Not only do women entrepreneurs struggle with the whole ‘I can’t go into debt’ mindset – but they don’t know what they don’t know about getting a business up and running. And, for one thing – this does not all happen overnight.
I know that many of you feel that any kind of debt is a burden and something you want to avoid. The truth, however, is that you will incur debt – you will have expenses – you do need to invest – and much of it happens in the first year or two of business.
Don’t let debt get you down – it is critical, in the beginning, that you make the investment when it comes to getting a website done, hiring a virtual assistant, getting a printer and business cards and banners for trade shows – and so much more. One of your largest investments may be your business coach (and that’s a very good thing!) – but, by the end of year one and certainly by the end of year 2, you may be feeling very frustrated and overwhelmed.
Some of begin to wonder if it’s all worth it! You’ve been doing everything right to bring clients in the door – but the mounting debt is keeping you awake at night. Hey – that’s normal. Every business has debt! You are on the right track – I was reading information from Statistics Canada on the weekend and it was clear that it takes up to 2-3 years for businesses to turn a profit. You may not be in a brick and mortar situation – in which case, the time frame will be shorter for you. And that’s good news.
But I know this keeps you awake at night – so let’s talk about ways to get the debt under control (at least emotionally!).
1. Get a Coach. No entrepreneur should be without a coach. For those who believe they can do it all themselves, you are wrong. A good business coach will guide you and save you from making costly mistakes and from re-inventing the wheel when it is not necessary.
2. Create a Plan. You’ve got to create a plan and work the plan. This helps to keep you focused so that, for instance when you get caught up in the emotions of the financial investments you are making in your business, your daily action plan should be moving you in the direction of increasing cash flow. Your daily action plan should be focused on revenue-generating activities (NOT administrative tasks!!!!).
3. Get a Part-Time Job. No, I’m not kidding. Perhaps that is what will help to keep you afloat in the first year or two. There’s no shame in that. It’s a wise decision as you keep your eye on your business dream – and yet get some sleep at night, too. (I got a job for a year and socked away as much money as possible to ensure I could pay for a coach, computers, and all the other tools required to keep afloat – and grow the business.)
4. Get a loan. For me, because of my financial fiasco after my divorce, a loan was not possible. Banks wouldn’t even consider talking to me. So, I used my credit cards as my ‘business loan’ – the thing is to use the credit cards wisely and consider them as a ‘tool’ as you grow your business. There is no shame in this.
Women entrepreneurs are very adept at handling challenges – and managing finances in a start-up business is just one of the many challenges you will face. Keep this in perspective as you grow your business and realize that ‘success’ does not come overnight. For me, I fast-tracked in growing my business because of the phenomenal coach I hired – and I did everything she told me to do. I don’t like debt any more than the next person – however, this is a time when you must shift your thinking. There is ‘good debt’ – business investments, and there is ‘bad debt’ – always feeling the need to upgrade to the latest technological ‘toy’.
Get smart – get a grip – get focused – and grow that business. You have people to serve and they are waiting for you! And keep your eye on the prize – it takes 2-3 years to get out of ‘start-up’ mode – be patient with yourself – Rome wasn’t built in a day!
What are you going to do today to stay focused on building your business?
Please share your thoughts!