The Success Center

Archive Spotlight: I thought it would be a good idea to start spotlighting a couple of posts that are buried in the archives. Some of you are fairly new to this site and others are lifelong followers (you are, aren’t you?). No matter what category you fall into, I’m sure there’s at least 1 article here you haven’t read. Enjoy!

5 Ways to Start a Business without Going into Debt

Would you accept a $10,000 loan to start a business if you were personally in debt by, at least, double that amount? Think about that for a moment. Whether the business idea is, “pure gold,” or, “the next big thing,” is totally irrelevant. I honestly don’t believe God would give you an idea just so you can go into debt (and for some, further debt) just to get it started.

Proverbs 10:22 (NIV) says,

The blessing of the LORD brings wealth,
and he adds no trouble to it.

Let’s examine this scripture for a moment. The Blessing of the Lord can range anywhere from your spiritual gifts, the talents God gave you, the skills learned, or the abilities passed down from your parents. But, rest assured, everyone has a blessing from the Lord. Even you. There’s something that you can do that no one else can exactly like you.

In the same line of that scripture it says that the blessing of the Lord brings wealth. For those of you who are afraid to step out there and start your business because of fear, you’re missing out on financial increase. Yes, the economy is in bad shape. Sure, we have businesses closing their doors all around the country. But, if God be for us, who can be against us? If He gave you the vision in the first place, why wouldn’t he give you the tools to build it?

I love the last line of that scripture. It reads,

” . . . and he adds no trouble to it.”

What does trouble mean? It means financial trouble, aka. debt. Whatever blessing God gave you to start your business it will not only bring you wealth, but you won’t go into debt building it, either!

Here are 5 ways to start a business without going into debt;

#1 – Store/Company Front: start your company digitally with all communication, services, or products via the web. Creating an E bay store versus leasing out retail space will save you thousands in fees, maintenance costs, insurance, and etc. Skype is extremely popular for making free calls via the net and open source e-commerce websites typically come with many web hosting services. (For those not up to speed with nerdy internet lingo, open source is free software made available to the public.) Some companies will have to have a store front or physical company presence. That’s understandable. However, don’t go overboard with credit cards, lines of credit, and second mortgages just to make it happen. Be smart and stay strategic every step of the way.

#2 – Employees: Let’s get one thing straight, your payroll will become the largest monthly expense you will incur as a business owner. So ease into those pains by starting off with your “employees,” as independent contractors. This means that when a job is complete, you pay them, they handle their own taxes, and they’re legally not your employees so you won’t have to worry about Uncle Same breathing down your neck. After a while, once your cash flow is moving like the mighty Mississippi, you can start to add regular employees. Strategically, hiring your main gunner full time and maybe one part-timer would probably be efficient for a start-up.

#3 – Legal: In order to start the business you’ll have to get your business license and applicable permits. However, plenty of people go into debt by filing trademarks, copyrights, drawing up legal documents, hiring a business lawyer to start the company, etc. While it’s smart to protect your ideas, it’s even smarter to protect your wallet to keep those ideas afloat. Don’t purchase trademarks and copyrights all at once. Save up for them and purchase them over time. Utilize your bank’s notary service and mail copies of sensitive material back to yourself for a cheap “government stamp” of authenticity. Check out Docstoc.com, they have free business, marketing, and other legal documents online for free.

#4 – Start-up Costs: Does it take money to make money? Well . . . it depends. To curve start-up costs, seek general partnerships with people you trust and who can bring their wallets, skills, experience, and talents to the table. Maximize every available resource, old computers, old software, furniture hand-me-downs, etc. until you can generate some income. Also, look for local “in-kind” sponsorships. Instead of sponsoring your service or product for money,  companies may be willing to give you tools, resources, equipment, or advice in exchange for promoting their brands.

#5 – Marketing: When it comes to spreading the word about your product or service, I’ve got 3 words for you; DIY,  networking, and Social media. (Well, 1 word and 2 phrases, ha!) Doing-it-yourself as far as creating your website, business cards, fliers, etc. saves an unbelievable amount of money in the long run. There are plenty of free design tutorials and resources on the net. Youtube is a great place to start searching for them. If you’re not networking at business or industry events then you’re missing out on opportunities to interact with potential clients and colleagues. Even in this digital age, word of mouth is still the number one free marketing tool. Social media includes, blogging (which gives readers an inside look into your life, business, industry, service, or product), video creation and sharing (possibly, tips, how-tos, or an extension of the “inside look” the blog achieves), and social networks like Twitter or Facebook (Great for getting into “the flow” of conversations happening in your industry, sharing information, and engaging potential clients in new ways).

Resources:

For more free ways to help you market your business check out my series;
5 Free Ways to Market Your Business .

Also, check out Resource Round-Up | 10 Small Business Links

If God, has given you a vision, now is the time to step out there and start it! Don’t be afraid. Hold on to His promise to bring you wealth and add no trouble (or debt) to it. What other ways can you start a business without going into debt? For all my small business owners, what financial challenges did you face when you started your business? Please, share your comments below.

About the Author Rod is the editor-in-chief of The Success Center, Producer of "Inside the Success," and a Success Coach. For more information, tips, and advice on being a successful Christian-preneur subscribe to Rod's "Success Tips!" weekly newsletter.

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Archive Spotlight: I thought it would be a good idea to start spotlighting a couple of posts that are buried in the archives. Some of you are fairly new to this site and others are lifelong followers (you are, aren’t you?). No matter what category you fall into, I’m sure there’s at least 1 article here you haven’t read. Enjoy and feel free to leave a comment or two.

7 Tips on Becoming the Master over Debt

Did you know that debt = slavery?

If you have any amount of debt then money becomes your master and you become the slave. You’ll work tirelessly for the slave master day and night just to get him off your back. Whenever you “buy” a car with your good credit he’ll crack you on the back with his whip. When you put those new clothes and shoes on the charge card he’ll rape your finances and steal your joy (It’s that critical of a situation).  It’s hard to accomplish your goals, grow your business, and enjoy your life with a mountain of debt looming over you. According to Hoffman Brinker and Roberts’ credit card debt statistics;

Americans have conflicting attitudes about debt. While 91% believe debt can be controlled by disciplined saving and spending, 72% also believe that debt is a part of modern life and difficult to avoid.

Can you believe that 72% of Americans believe that debt is just another part of life? That’s interesting because according to the Bible, it says that God will bless us as He has promised. Read the scripture below;

Deuteronomy 18:6 says,

“For the LORD your God will bless you as he has promised, and you will lend to many nations but will borrow from none. You will rule over many nations but none will rule over you.”

Don’t you believe that? Isn’t it time you got out of the rat race and really got what God has for you? If you’re ready, then  open your heart and receive words of knowledge from Dave Ramsey, financial freedom guru. Dave outlines several great tips on managing your debt and ultimately becoming debt free in the short video below.

As entrepreneurs, we have to exercise patience and self-control in our spending and maximize what we already have. Don’t let debt become your master. And if he already is, then declare your freedom today and follow the tips Dave outlined in the video above.  I am currently utilizing the envelope system that Dave mentions in this video and it’s bringing me some great results. What are some other tips, advice, or techniques that we all can use to help manage our finances and eliminate our debt? Sound off in the comments below!

Update: 11/24/09: I’ve also started to buy my lunch for weeks at a time and cook it the same day I buy it. It’s saved me tons of money and time. Also, paying for things with cash only has helped out a great deal, but sometimes I fall back and swipe my debit card. I’m working it out though!

About the Author Rod is the editor-in-chief of The Success Center, Producer of "Inside the Success," and a Success Coach. For more information, tips, and advice on being a successful Christian-preneur subscribe to Rod's "Success Tips!" weekly newsletter.

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On Monday, I explored the idea of what you should do in order to Quit Your Job and Make Millions. Today I want to explore one aspect of that article that kind of hit home for me. I suggested saving up at least 3 months worth of your current salary. When you’re just starting out money, above all things, money will become your main concern. If you’re prepared at the beginning, you can focus on making customers happy, making more money, and having more fun.

There was a time in my life when I started a business (several as a matter of fact) and I did it without saving a dime. I struggled for almost a year with very little sales and I was unemployed. Trust me, you don’t want to start your business on pure “adrenaline and excitement.” Take a step back, be strategic, and move when the time is right.

Note: Your current circumstances, current level of discipline, and sense of urgency about your destiny will determine how long it takes for you to save up enough to take your business full-time. If you’re serious about this then listen very carefully to the tips below.

Here are 6 things you can do to save money, quit your job, and make millions;

1. Create a 3 Month Budget – Everything starts with a plan. You’ve spent a long time getting your business plan together, why wouldn’t you put together a financial game plan? I’m not the king of budgeting and I don’t have all the money in the world; but I know exactly what my expenses are, how much is coming in, and a pretty good idea of what’s going out. It’s not hard to do, but I suggest creating one with some tools you probably already have. Microsoft Word features budget templates that you can download for free from Microsoft’s website. (You can also download them directly from Word!) Also, check out Quicken online. It allows you to track expenses, create a budget, and it’s free. (Oprah’s favorite things are gadgets. . . mine are free!)

Bonus: Try out Mint – By far, one of the best looking and performing personal finance tools to come around. Plus, it’s free! (There’s my favorite word again!)

2.  Cut Out Unnecessary Expenses - Sounds easy right? Well, your flesh will tell you, “we can’t stop going out to dinner for a month straight, are you crazy!” But, your spirit knows the plans God has for you. And it doesn’t involve working a 9-5 forever. You’re going to have to start that business God gave you and in order for His plans to prosper. So, you’re going to have to let some things go.

3. Use the Envelope System – This is a tip by financial guru, Dave Ramsey. In short, Dave says to give every dollar a predestination and place it in an envelope. Put grocery money in an envelope labeled “groceries”, gas money in an envelope labeled “gas,” etc, etc. It keeps your money separate, you’ll know exactly where it’s supposed to go, and paying with cash keeps charges (and overdrafts – the financial devil in disguise) to a minimum. You can watch the video explanation of the system as well as how to get out of debt by clicking here.

4. Grocery Shop Wisely – As a man, when I go grocery shopping, I have a tendency to shop with my eyes and not with my brain (I know, I’m not the only one!).  My mom could go into a grocery store, buy like items, and spend up to 50% less. The key (talking to all my fellas) is to use coupons, buy store brand items, and break frozen dinners down – buy the ingredients, (hungry man dinners, anyone?) and cook them yourself.

Note: Did you know that when you buy a frozen dinner you’re paying for processing, packaging, and marketing costs? Cut out the middle man, cook it yourself, and save money!

5. Bring in Extra Income – This tip won’t save you money, rather, to earn you more of it to go towards your “early retirement.” Work overtime, pick up a part-time job, have a garage sale, sell stuff on Ebay, etc. Do whatever you have to do to bring in extra loot and quit your job. You might have to put the vision on the back burner but that doesn’t mean you can’t cook it! You might have to let it sit back there and simmer while you’ve got the front burner of money boiling over!

6. Pay your Tithes and Offering – Non-believers, pay attention! The key to financial freedom is right here in this scripture (via Biblegateway.com);

Give, and you will receive. Your gift will return to you in full—pressed down, shaken together to make room for more, running over, and poured into your lap. The amount you give will determine the amount you get back. – Luke 6:38 (New Living Translation)

Did you catch that? When you give your tithes and offering to your local worship house the bible says, the amount you give is given back to you, pressed down to make room, FOR MORE! #1 – Tithing is a biblical principle and shows our obedience to God and offering is our sacrifice. #2 – When we do it and we give consistently, God honors our sacrifice and returns what we give . . . with interest for being obedient. Wow!

Note: Read Malachi 3:8-11 and see what God has to say about testing Him when it comes to the principles of tithing and offering. (I dare you, I double dare you to click!)

And there you have it, 6 ways to save (or make) money so you can finally quit your job and start your business. I hope you were as blessed reading this as I was writing it. Where does the “Make Millions” portion of this article title come into play? That happens when you walk away from work (smartly as we’ve learned) and launch your business. Of course, these aren’t the only things you can do to save money. What techniques do you use to save or what tools have you found most helpful in keeping your mind on your money? Share them below!

About the Author Rod is the editor-in-chief of The Success Center, Producer of "Inside the Success," and a Success Coach. For more information, tips, and advice on being a successful Christian-preneur subscribe to Rod's "Success Tips!" weekly newsletter.

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