| Like many aspiring entrepreneurs, you may have | | | | budget your money, business ownership is not for |
| decided to break free of your job to live your dream | | | | you. |
| of working from home. You're ready to seize the | | | | Increase your financial IQ - You don't have to |
| opportunity for freedom, unlimited earning potential | | | | become a financial genius or investment guru, but |
| and chance to live your life exactly the way you | | | | you do need to have the basic skills. You can access |
| want. | | | | a helpful questionnaire at to help you measure your |
| One of the biggest challenges you will face during the | | | | financial intelligence and identify areas requiring |
| first two years will revolve around cash flow and | | | | attention. |
| money management. | | | | Also, get your hands on the book Rich Dad Poor Dad |
| In order to give yourself the best chance possible of | | | | by Robert Kyosaki. |
| surviving the first two years so you can thrive from | | | | Explore Sources of Capital - The first year may |
| that point on, it's imperative that you achieve | | | | require significant investment in equipment, education |
| mastery in five areas: | | | | and marketing and there's no guarantee your |
| 1. Gain control over your spending today | | | | business will start making money right away. |
| 2. Create a personal and business budget | | | | Unless you have significant savings put aside for the |
| 3. Increase your financial IQ | | | | start-up period, you will need to explore alternate |
| 4. Explore sources of capital | | | | sources of capital. |
| 5. Think like a successful business owner | | | | Explore financing options through government |
| First things first. Gain control over your spending | | | | programs, start-up loans, angel investors, |
| today - Honestly evaluate your spending habits and | | | | partnerships, friends and family, and although I don't |
| identify where your money is going. Are you living | | | | recommend this one unless you are proven financially |
| beyond your means and buying things you don't really | | | | responsible, credit cards. |
| need? | | | | Depending on your product or service, perhaps |
| In The Millionaire Next Door, by Thomas J. Stanley | | | | pre-selling to your clients and customers would be |
| and William D. Danko, a focus group interview of ten | | | | feasible. Suppliers might also provide the start-up |
| first generation millionaires revealed that most | | | | money you need. |
| millionaires don't own expensive clothes, watches or | | | | If you borrow money, even if from family or friends, |
| other status objects, and you won't find them driving | | | | always get agreements in writing and make sure the |
| brand new luxury cars. | | | | loans are set up with proper security, terms and |
| A millionaire Texan coined the expression, "Big Hat No | | | | conditions and a payment schedule. |
| Cattle" to illustrate the fact that many people like to | | | | Think and act like a business owner - When you |
| create the illusion of wealth by making extravagant | | | | transition from employee to entrepreneur, you will |
| purchases yet have little to no financial wealth. | | | | require a shift in your thinking. You will quickly |
| Many of these people are deep in debt and if they | | | | discover that trying to get everything for free or at |
| were to lose their jobs today, wouldn't be able to | | | | a "deal" will actually hinder your success. |
| survive three months on their savings. | | | | In the business world, you will be required to develop |
| Take control over unnecessary spending. Do you | | | | win-win relationships. If you require something of |
| NEED 50 pairs of shoes and a matching purse for | | | | someone, how will you help him in return? Practice |
| each? Do you NEED a new vehicle every three | | | | the Law of Reciprocity which means, learn to give |
| years? Before making a purchase, ask yourself if it | | | | and take mutually. In other words, when someone |
| will contribute to your building a successful business | | | | gives you something, give something of equal value |
| or take you further away from it. | | | | back. |
| Create a budget - Do you know how much money | | | | Master these five areas and you will significantly |
| you're bringing in each month and how much is going | | | | increase your ability to succeed. |
| out? Budgeting doesn't have to be unpleasant or | | | | As you make financial decisions and begin to build |
| difficult and if you don't know where to begin, there | | | | your business ask yourself, "Is this the best use of |
| are a multitude of helpful resources and articles on | | | | my money in terms of supporting my business?" This |
| the Internet to get you started at no cost. | | | | evaluation process will become second nature |
| Successful business owners understand the | | | | through practice and will support you in making smart |
| importance of a budget and follow it faithfully. | | | | financial decisions. |
| If you have no interest or willingness to learn how to | | | | |