My wife loves me. Do you know how I know my wife loves me? Because… on my berfday, she goes out of her way to get me whatever I want. And, many years ago, I developed a taste for the confectionary… and the best of the best can be had at a little bakery called Sugar Buzz. Oh My. This place has some of the best cupcakes I ever done eaten. A few years ago, I went a little crazy and wound up in a food coma. But, something good came of it all. All that cupcake eatin’ got me thinkin’ about being hungry in business.
I was recently reading something like 75% of small business owners, solopreneurs, independent contractors…etc. and so on…use their own personal savings to fund their business.
On the surface of it, it makes sense. Banks don’t usually lend to very small businesses and self-employed types. During the last financial crisis, you probably noticed something happening in the banking industry.
It was a subtle shift with a huge impact…
…those that relied on banks suddenly couldn’t rely on them anymore. Funding dried up. Savings were drained. People cashed out of their investments AFTER the crash…meaning they locked in massive losses.
What a shame.
Dood. I mean, seriously, that sucks. Hardcore.
They say it’s good to be “hungry” in business. Lazy business owners don’t have incentive or motivation.
But, there’s a fine line between hunger and desperation. When the well has run dry, and you’re scrambling around for money, life’s not fun.
What’s the solution? Well, my friend, I’m glad you asked. It’s simple, really.
Specifically, you need to start saving more money than you are right now, while times are good.
I know, I know. Not “fun.”
Let me tell you a secret…come closer.
…OK there…you had a cupcake crumb on your shirt. Sorry ’bout that…no, no, wait there was something else I wanted to tell you…
In most cases you don’t need to make dramatic changes to your lifestyle to start saving money. Sometimes, you don’t need to make any changes. You just need to reorganize your finances.
Example: instead of tracking expenses, set up a system of averages. Averaging does some (almost) magical things for your savings. And, the really cool part is, when you track average income and expenses and forget about individual expenses, your life gets much…MUCH…simpler. You might even find you don’t need any fancy accounting or bookkeeping apps anymore (and, you can arrange it so your bank does all the accounting and expense tracking for you for free — good for tax time).
If you want to ditch all the complex stuff that’s not working for you right now, flex thy fingeroonies and get yourself onto my email list. Not only will you get way more advice that I never give here on the blog, I’ll key you in to some helpful resources which I guarantee will help you simplify your finances. Some of them are even free… oOoOoOoOoOooo… I know I must have activated someone’s cheapskate nerve with that one.
Enough. Get on the email list. Do it, now.