As you know I listen to Dave Ramsey and follow his teachings. My wallets are designed with the ability to divide your cash up in five categories so you don’t have to cart around tattered envelopes in your purse! I want to help others get out of debt, because it is so freeing and amazing to pay for things yourself! Loren and I took out a car loan when we first got married. That was before we started listening to Dave Ramsey, we also refinanced our mortgage to get a better interest rate. To do it we had to take a second mortgage out. It wasn’t huge, but it was still there. After we started listening to Dave Ramsey, I checked-out out the Total Money Makeover from the library, and Loren and I read it together. We decided we didn’t want any debt other than our house mortgage. We worked hard and got that second mortgage knocked out (car loan had been gone for awhile). I share this with you because I feel it relates to business. I didn’t want debt in my personal life, so why would I take out a loan for my business? I started by transferring $1000 to a separate bank account for my business. Start with whatever you can and grow it slowly. Don’t rush out and take out a loan to start your business. It may be a little more expensive in the beginning when you are buying fabric at retail instead of wholesale. But start small, figure out what works. You don’t want to sink a ton of money in a bunch of supplies for something, and later find that it is not going to work out for you. It is better to start with a little bit, then when you know it works, use the profit you make, and pour it back into maybe buying those supplies at wholesale. Then you can make even more profit to pour back into the business to grow it organically, not with debt. I read Entre-leadership by Dave Ramsey and loved it. It has so many great tips on how to start and grow a business. I really recommend you read it if you are thinking about starting a business. I also really want to read More Than A Hobby by David Green, the owner and founder of Hobby Lobby. He started with $600 in his garage and now has 1.3 billion dollars in sale every year! Wow! It is possible to start little and grow. When you take out debt, then find out that idea or business isn’t working, you will be paying off debt with a nonexistent income you expected to be there. You are adding unnecessary risk to your life.
A few tips for starting debt free:
- Don’t think you have to start with all the nicest things. Maybe it means renting something for awhile until you have enough money to buy it. Depending on what things you need, it may seem hard to start with no debt, but be creative, you can do it. Make a list of the things you eventually want to buy. Put aside a small amount of each sale to go toward that purchase. Make saving a priority, if you don’t the money will easily be spent.
- Shop around for the best buy- Take zippers for example. When I first started I would buy them at JoAnne’s for like $3 a zipper. WHOA! Way to expensive, even if I used a coupon for 50% off that is still $1.50 and I can’t buy a bunch at that price. So I started looking online. Look on Etsy, there are many suppliers that sell snaps, zippers, buttons, really any supplies you may need at wholesale prices. I now buy my zippers in bulk online and save a ton of money. There are stores on Etsy that even sell supplies in smaller quantities like a pack of 10 zippers, for a much cheaper price than you can find at Joannes. Just keep looking, don’t settle for the easiest, or first thing you see.
- Use Coupons- I take advantage of my coupons I get from Joanne’s. I look through their add that they send out, and if there is something that I need that is on sale, I will wait until then to go to JoAnnes. Take advantage of that sale while using your coupon on something else you need not on sale. It is like shooting two birds with one stone! Just be smart about using coupons and hitting sales.
- Be willing to grow slow- Just be patient. Don’t rush it. Someone told me it takes at least, if not more than a year to actually start paying yourself profit. Up until then you are pretty much just using that profit to go back into your business for growth. So just be patient and understand that it takes awhile to get on your feet and start making money.
- Don’t be afraid of hard work- If you want something bad enough you will work for it. There are so many people who work extra jobs, sell things, pretty much give up their ideal lifestyle to get out of debt. You may have to do something similar to start your business debt free. Don’t be afraid to do it. It will be worth it in the end. To be debt free is amazing. As Dave Ramsey says: “Live like no one else, so later you can live like no one else.”