Many of us single moms wish we could start our own business so we can have more time home with our children instead of leaving them to work outside of the home, we should not have to abandon our children to earn a living. Our place if with our kids and starting up our own business is just the way to do it. But how much does it actually cost to do this? Keep reading to learn to find out.
How Much Does It Actually Cost To Start A Business?
The main thing that puts people off starting a business is the amount of startup capital that you need. The general opinion is that you need a huge amount of money that most people couldn’t save, even if they stuck to a strict budget for the rest of their life, but that’s not actually true. In fact, most businesses startup with under $10,000 and a lot of them do with less than $5000. Heck, most mompreneurs start their business for nothing! I did! That’s a much more realistic goal but the amount of money you need is dependant on the type of business that you want to start. If you’re considering starting up your own company, here is a guide to help you work out how much startup capital you’ll need.
If you’re starting a business that is fairly cheap to get going then you might be able to save up all the money yourself, but most people tend to borrow at least part of it. Working out how much you can afford to borrow will help you decide how much you need to save yourself. A revolving line of credit is probably the most sensible way for a small business to borrow money. The bank will set a top limit and you can withdraw money as and when you need it as long as you don’t exceed the limit. This is much better than taking out the loan as a lump sum because you’re only taking what you actually need. You can use a line of credit to cover a lot of your general running costs so you don’t need to save up as much money for that. A lot of banks and other credit unions actually have programs specifically for single moms!!! So definitely do your research and find the best way to go about this.
Hiring office space is one of the biggest costs for any business, so running the business from home is the answer. This is the best way to make yourself available for your kids 24/7. The rise of remote working and cloud technology means that your employees can often do their jobs from home as well, so you don’t need to factor in the costs of hiring an expensive office space. Boom baby!
Room For Growth
Room for growth is one of the things that is often overlooked when people are calculating how much money they need to save before starting a business. Most people save enough money to fulfil small amounts of orders for the first few months until they become profitable enough to cover all of their running costs. That’s fine in most cases but what do you do if you exceed expectations and suddenly get a huge windfall of orders? You need to capitalize on that opportunity but if you don’t have enough money to produce all of those products, you’ll miss out. You’ll probably end up borrowing more which isn’t a sensible move this early on in the business. Work out your production costs and then save some extra that you can keep aside just in case.
These are the main things that you’ve got to consider when saving money for a startup, but one thing that people often forget about is paying themselves. You’ve still got to cover all of your normal living costs now you aren’t working so remember to factor in a wage for yourself. I hope this has helped you on your journey to becoming a mom boss! Share this post to help other potential mom bosses!
A Collaboration 🙂